For those of you who think following stock tips from people you know, stock market gurus or reputable financial publications is a good strategy… THINK AGAIN! Check out this article from Barron’s back in 2012. 20 days before the article was written Facebook hit an all time low of $17.55. It is currently at all time highs at $133.50.
Too lazy to read the whole article? Here let me list some quotes to highlight their points.
- “Is the stock a buy? The short answer is No.”
- “What are the shares worth? Perhaps only $15.”
- “…the shares trade at 50 times earnings. At $15 they’d still be valued at a rich 35 times earnings.”
- “Connect with your friends on Facebook. Stay away from the stock…”
Ok I think I made my point. Please always honor your stops, always do your due diligence and never NEVER be stubborn with a trade or you will lose BIG in the stock market.
Below is a video I did showing you what happens to you when you follow stock market guru alerts. Although, I like Barron’s the video applies to them as well if you decide to blindly follow.