The Official Stock Market Thread

[JMarchand1981]

Originally Posted by AnthonyCorona

I hate to sound so stupid but do stocks work like cards sometimes? A guy with a big following mentions a player, card or stock and the price soars for no other reason? If this is the case I guess it makes understanding the market even more difficult.


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That isn't a stupid question at all.

To answer your question, if you are following some nobody, chances are you don't know how to build an entire portfolio. Trading stocks isn't just pick one, hope and then wait for the next one. These guys sending out that information aren't professionals and they aren't licensed to do anything but drive. It's scary the impact they have in cash flows. It's scary that people allow them to have that kind of impact on cash flows.

There is a reason why people in corporate finance and professional money managers make the money we make. There is knowledge there to help mitigate when the markets turn sour. More importantly, there is knowledge and experience there to know when the pot starts to turn upside down BEFORE it happens. Someone who looks at the market without bias can do that. Someone with bias cannot (the bias is why the money managers got hammered in 2001 and 2007-08). Someone solely playing off of tips from someone has nothing but bias, right? Those are the ones who ultimately lose the most.