There’s been quite a craze right now when it comes to investing in stocks. With the news filled with stories about GameStop, AMC, reddit, everyone is eager to jump in and maybe make a quick buck or two.
But making money on stocks is a finicky thing. It’s pretty much like gambling. People take a risk with a company and hope that what they bought would go up in value. These choices are heavily spurred on by information, and with information free-flowing around in today’s society, people end up easily driven to make crazy and possibly baseless choices.
This happened to a friend of mine once. They also almost roped me into it as well. They heard some sensationalized rumor on social media, jumped on board with no hesitation and no research beforehand, and in the end, sank faster than the Titanic in the North Atlantic Ocean.
Investing in stocks isn’t a death trap though. As long as people take precautions and properly prepare themselves before dipping their toes into stocks, they would have better chances at actually making money with them.
Research is one of the most important things to do before investing in stocks. It’s easy to be drawn in by fancy looking graphics and videos on the internet telling people which stocks to get, but only the white paper of the companies tell the truth. Is this company actually worth something? Do they have a future? What are they working on? How are their finances? The answers to these questions are just some of the many things that can help people decide whether or not a company is worth investing in. It’s a lot easier to answer these questions if you understand what the actual company is doing, so studying a company related to your field of expertise is a great idea.
At the end of the day, nobody can completely predict how a company will perform in the foreseeable future. One day they could be rapidly approaching a massive breakthrough in their products, the next they could be hit by a massive scandal. So make sure to do proper and diligent research first before taking a single stock position.
May your candles be green!
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Disclosures
Securities offered through Securities America, Inc., member FINRA (www.finra.org)/SIPC /www.sipc.org), a separate entity. Lee Michael Murphy is licensed with the California Department of Insurance, License 0H18660. Lee Michael Murphy is an Investment Advisor Representative with Securities America Advisors, a registered investment advisor
The Free Retiree, Securities America Advisors, and Securities America Incorporated are separate entities. Career advisor Sergio Patterson, attorney Matt McElroy are not affiliated with Securities America Advisors or Securities America Incorporated.
Securities America Advisors, Securities America Incorporated, and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation.
Third-party sourced information or comments are not verified, may not be accurate and are not necessarily representative of all client or audience experience. All or a portion of this event paid for by a third party.”
The opinions of a career advisor, Sergio Patterson, do not reflect the options of Facebook, Inc. The opinions of attorney, Matt McElroy, do not reflect the opinions of Castaneda and Company.