Traversing new paths is always difficult- the terrain could be anywhere between rocky, bouncy, or life-endangering. In the world of investment, we can dub your journey as money filching and bankrupting. This must be your biggest nightmare and the most despicable end to your journey, and you want to take every measure to avoid such a doom. That means you will be eager to receive advice.
However, not all advice should be heeded and taken seriously. Some could spell an outright pitfall. Mentioned below are the four sources one seeks advice from.
1. Relatives and office companions
2. Websites and online blogs
3. Television program, news channels, and brokerage houses
4. Financial advisors
These sources are vast and can offer a lot of advice. However, there is no guarantee that all pieces of advice are equally sound. They might get away with offering fallible advice however, it is your precious money and life savings at stake.
Follow this checklist to ensure the advice you are getting is safe and fruitful, instead of misleading and distorted.
– Do they have an unscrupulous track record?
Before taking anybody’s word for their authenticity and reliability, closely inspect the background of the advice-giver. Does the person or platform delivering advice have an impressive track record with depicting market trends and stock fluctuations? If the advice-giver is not known, for example, on an online blog or a newspaper article from an unknown writer, beware of his advice and never follow it.
– Does their advice match their actions?
Whether it be a brokerage house or independent financial advisor, before taking their word to heart, figure whether they have invested in the same company they earnestly urging you to invest in. If they have not, do not follow their advice. If they do not trust this company for their own better interest, this advice is not in your better interest, too.
– Do they have a daily market update?
It is not only important to signal out the firms you choose to invest with, but it is also equally important that you have a thorough update on its daily activities on performance to know when to enter the market or sell the stock. Thus, only take advice from someone who has heightened interest and know-how of the company operations you are investing in and can also guide you about the stock market’s stock performance.
After all, the money you invest has been accumulated by you over years of hard labor and struggle, and you will hate to lose it due to bad advice.
