If you’re a new investor trying to learn about stock investing you have probably joined some investment forums/groups and starting following so called “experts” on Twitter. You need to exercise extreme caution when you encounter these “experts” on Twitter. Many of these investors are there to sell you a product, their ebook. Now, I’m not saying that they don’t know about investing because I don’t know enough about them to make that judgement. And there lies the problem. Their expertise can’t be brought into question because they hide behind their Twitter username/handle. The issue I have isn’t with their knowledge or lack of but with their methodology. They’re not transparent. I have no idea who they are. No real name for me to vet and determine if they are someone I want to listen to, spend my money with, or even to invest based on what they say. Why would I want to buy their ebook about investing? I have no idea who they are or what their track record is other than what they tell me with their limited Twitter bio or web page. For all I know they don’t even have $1 invested in the stock market. Anyone can say anything as long as they’re anonymous.
Now there are other authors that I can vet such as Phil Town or Peter Lynch, just to mention two. You can get more reliable ebooks on Amazon for a lot less than what the Twitter “experts” are selling their ebooks for. Don’t be so eager to throw your money away to every Tom, Dick, and Harry on the Internet just because they “SAY” that they’re successful. If you have someone’s real name you can then Google their name to see what shows up. Are they a scammer? Are they a financial professional? We are talking about your money. You want to make sure that you are spending it in the most effective manner.
The same goes for the ones in the Internet that sound like professional financial advisors or lifestyle coaches. They will post tweets either selling their ebooks and/or giving investment advise. They may even post stock recommendations without explaining the reason behind their recommendation. Many state on their Twitter bios that they ARE NOT financial advisors. Believe them. Generally, before I take any investment advice from anyone that wants me to believe that they are a financial professional, be it on the Internet or not, I vet them through BrokerCheck.
So, if you’re just starting out with stock investing you should learn whatever you can before you move into the stock market world. Get yourself a mentor (someone that you know personally and trust who has been involved in investing for a few years) and read and learn from the verifiable experts who impart their knowledge. And there’s nothing wrong with sharing ideas and experiences with others, as long as you’re cautious in doing so.