Free Stock Trading Advice

By Business & Finance Last updated Saturday, June/01/2024

Books

The best books on stock trading are written by former traders who made a lot of money in the stock market. The best stock trading methods have withstood the test of time, working well in different markets. A book on stock trading that is 20 or even 50 years old could still be valid today. Many good books on stock trading are available free at the library.

The number of Internet stock-picking groups and forums has mushroomed in recent years but the number of good traders has not changed much so it has become harder to meet a good stock trader online and avail yourself of his knowledge for free. It may take you a while to find a good stock group but the free advice you can get from it can be very valuable. People like to talk and help: if you ask the right questions you may get useful and timely answers. To validate a group or a stock picker, look up the past posts and stock picks, write down the stock symbols mentioned along with the dates and check them against the stock charts. If you see a pattern of timely profitable purchases and sales, you have found a free online nugget.

Professionals routinely go on TV to promote themselves by proffering free advice. Following it has two problems. First, you never know a guru's or a professional's true motive for giving out free advice. A fund manager may say that she likes a particular stock to entice investors to buy so that she can sell. Second, the downside of following free stock trading advice piecemeal is a lack of follow-up or continuity. For example: Today a guru on TV likes a particular stock. You check it out, like what you see and buy. Tomorrow the stock begins to decline. What do you do? The guru is not there on TV to tell you what he thinks of the stock today, much less what to do. In fact, his entire TV appearance may have been designed to entice you to sign up for his service.

Stock tips are everywhere: on TV, online on stock message boards, StockTwits, trading blogs and sites, in the office lunch room... Treat stock tips as you would treat free guru advice: ignore them or have a system to check them out but never accept them at face value. You don't know the tipster's motives or skills, and there is never a follow-up.