INVESTOR’S BEWARE OF YOUR BROKER’S ADVICE: I’m just new to Stock Market but I cannot understand this recent broker (COL) advice about PX (PX: Not all that glitters is gold) dated 22.07.2014 even the Title is already not so good. I cannot comprehend what’s their intention or motive about this but clearly it sends a negative impact on the stock. Recently it has been & still going up and then they issue an advice that current price of the stock is not what it supposed to be. Isn’t it that their utmost interest that their client makes money from capital appreciation? If they issue a statement like this & suddenly people who would like to purchase the stock today hesitates & bought other stock then they already altered the direction of the stock. What’s the reason for giving statement like this? Does it mean that the market is wrong & that they are correct on the Price of a Stock or that we investor must settle only for average returns instead of expecting high growth of our stock that we choose which I think all of us are always hoping for? Why do they need to issue a NEGATIVE remarks on a stock that is having positive growth & momentum? Dragging down the price & also their client. Just because it has surpassed their FV or their fundamental analysis means they will issue a statement that is really NEGATIVE in nature. I also have one stock which is also in their Investment Guide & EIP Recommendation, they give a high FV or Target Price, but the stock is dropping down & continuing to dive but I am maintaining a positive attitude about it. MY OPINION IS THIS: I believe you are almost always better off picking your own investment ideas because you will know why you picked them. Also, you will be more aware of what is happening in the market since you wont have delegated responsibility for your money to someone else. If the market is saying that a certain companys earnings are expected to grow (evidenced by an accelerating upward stock trend), why should we find reason to dispute what the market is saying? The opinion of the aggregate marketplace has far more credibility in my eyes than does the opinion of any fundamental analyst, no matter how good. So I will always go with the opinion of the market, as opposed to anyone elses opinion, including my own. To me, anyone who tells me that a stock which is moving up shouldnt be moving up, has by definition missed something in his analysis. Unfortunately, common sense of this sort is not applied in the stock market by many people. Even though we can directly measure through a stocks price trend what the companys growth prospects must be, there is always someone there to try to make us lose sight of that simple fact by pointing to his analysis. You can be sure that for every fantastically bullish trend, there is some analyst somewhere saying why it shouldnt be happening all along the way. The best you can do is to not listen to such opinions, and, again, go back to the market as your one source of advice. MAKE YOUR OWN INVESTMENT DECISION. BE WISE, DO YOUR OWN ANALYSIS, AND BE THE MASTER OF YOUR OWN FATE. DON’T TRUST YOUR HARD EARNED MONEY TO SOMEONE ELSE.
Posted on: Tue, 22 Jul 2014 08:46:51 +0000
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