Beware of a Trading tip

What I mean by this is people who give you a tip to buy or sell something. It may work out  (afterall, there’s a 50% chance it will go up or down so there’s half a chance you may make money) but in the long term you will lose money!

Why do I say this? I say this because as a trader or investor you need to be responsible for your own trading decisions. Should you lose, it’s too easy to blame someone else for the loss. Psychologically, you’ve given yourself a way out and not taken responsibility for the loss of money. The other things which I particularly don’t like is that you then foster a dependence on this person giving you tips.. you don’t go and find out how to make money for yourself. I believe making money on the stock markets is a skill that you need to learn for yourself.

It can be difficult not to listen to an expert.. if an expert says buy or sell, you will tend to follow them… afterall they are experts. However, even experts can’t predict where the stock market is going.. it is an educated guess and over the long term they maybe correct but you may, as I have many times, experienced periods of loss follow so called experts advice.

Anyway, last night I attended a webinar where the ‘expert’ said that it would be a good time to buy oil….. so I did and this is what happened:

I had a 100 point stop and this was hit in the early hours.. the long entry was right at the top too.

I know better not to listen to anyone but myself and it’s not the first time. It’s very human to want an easy way to make money so believe me, this can happen to any of us.

Some of the worlds best traders don’t listen or read the news (they are only aware of when the economic news reports come out) so as to not be influence by what is said by the media or by ‘experts’

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Category: money, Trading