This Week's News Letter

October 8, 2006

Sources of Information

Where do you get your ideas for new stocks? (Of course, this is assuming you are looking for new ideas or possibilities.) If you are like most folks you look in a variety of places; also keeping your ears open for chat from friends, coworkers and relatives. Quite possibly you also see things from newspaper columns, TV shows, or on your radio.

While some of the more localized information might give you a head start on a stock, the odds are if you hear it on television, you are, at best, climbing into the car after the race has begun. Another possibility is that the race is over and you are buying on news at the top of a pump, and your dollars immediately are dwindling.

Another source of information might be a subscription newsletter or your broker. We’ve already gone into how brokers make a living, (Newsletter 9/17/06) so I will just touch on newsletters. When you get the picks from an “expert” who sends out a regular newsletter (probably complemented by e-mail updates, or flash buy recommendations) you are depending on that person’s due diligence.

I don’t have anything against newsletters. I have subscriptions to a few of them myself, but I also do due diligence on their picks. I question the picks, research the companies, industry trends and do my own due diligence, and if the pick meets my standards, then I will put money into it.

All I am saying is, don’t buy blind, and be cautious about tips that reach too large an audience. I hear people talking about Cramer’s picks, or the Motley take on things. I read about them on message boards, and as often as not, the stocks rise and fall and where are you at on the wave?

Remember, you aren’t dealing with inside information, or any secret stuff. Millions of people read those same columns and hear the same cable shows. Not to say that some of their selections aren’t good picks, but remember, just because they say a name, doesn’t mean the selection is bulletproof. They are human just like all of us, and are still just guessing at what will do well.

Hope the information this week makes sense to you, and remember that questions and comments are always welcome.

Thanks and good investing to all, Solid Investing.

Rob

Rob@WealthTrainingSource.com

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The columns, articles, message board posts and/or any other features provided on Wealth Training Source are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author’s own and there is no implied endorsement by Robert Britt of any advice or trading strategy