Stock recommendations can be quite worthwhile for the investor and especially for beginners, if some pitfalls are avoided. Those who do not yet have enough experience and also do not want to rely on their gut feeling understandably look around for good recommendations for buying stocks.
Which stock recommendations are any good?
Buying stocksSerious institutions that have been observing the stock market for a long time usually prove to be helpful and profitable tipsters. However, investors should not exclusively take advantage of foreign recommendations, but also expand their own stock market knowledge over time and do their “homework”. Of course, there is never absolute certainty in the stock market. The following are some important tips for distinguishing between reputable tipsters and black sheep.
Reputable stock recommendations
Institutions, financial magazines and reputable stock market letters that have been on the market for a long time are trustworthy. If you have been following their stock recommendations for a while and have a good feeling about them, you are not taking a big risk with them. The renowned financial magazines usually also have a website with high-quality securities analyses. Here, too, it is nevertheless advisable to form your own opinion and always do your own research.
- With the variety of stock market letters, a thorough comparison is useful and necessary.
- On the Internet, there are independent and useful reviews of the best (often fee-based, but reputable) stock market letters. In many cases, these also offer a trial subscription for testing.
- The recommendations of the house bank are likewise without larger risk, however these pursue unfortunately usually only their own interests.
- An advantage here, however, is the personal advice and order execution.
With sufficient knowledge of the matter and common sense should be able to distinguish good from bad tips in most cases. After all, advanced investors no longer need recommendations, as they go in search of good stocks themselves – equipped with a lot of stock market knowledge.
Caution with these stock recommendations
Anyone who receives unsolicited stock recommendations by e-mail spam, letter, fax or telephone call should rather refrain from doing so. In most cases, dubious or even fraudulent elements are at work, who only want to push their junk stocks. Even before the tricked buyers wake up and can react, the initiators have long since sold these dubious shares at a profit and the price is in the cellar. Often also with such utopian profits one recruits that this would have to arouse immediately with each prospective customer distrust. Nevertheless, gullible buyers still regularly fall for such machinations.
Hot tips from abroad, from dubious websites and from Internet forums should also always be treated with caution. Unknown stocks and “penny stocks” as well as tips from acquaintances and friends should also be avoided. Anyone who absolutely wants to follow hot tips from the Internet (e.g. from blogs and financial sites) should in any case research the source or identity and the previous hit rate of the tipster beforehand.