When I first came across investing in stock market, I often hear people around me talking about "what are the hot tips"? If you have ever been to the brokerage houses with those huge screens showing the stock movement, you will hear lotsa people talking about the so called "hot tips"! Hang on, before you place your order for the "hot counter", take a look at the below to see if it makes sense to you.
The investment which your friends or the folks in the street are talking and discussing about may not be your cup of tea! Most of the time, people are interested to get “hot tips” from friends or brokers and started punting on the specific stock. Quite often, the most promising news are only known to the senior management or important clients or investors (the "inner circle") of the company. By the time the news reach you, the stock price may have factored in the news and is bound for a correction.
Considering the above, do you still think the so called "hot tips" are reliable? As a result, DO NOT jump on the bandwagon if you just purely hearsay the news or "hot tips". Frankly speaking, unless you are in the inner circle, there is no way you can profit from the "hot tips".
Happy investing....
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