One of the most common amateur techniques for stock picking involves standing around the water cooler (or online message boards) and picking up on cues given by people who know someone who know someone else who knows yet another person who said this or that and, get this, Stock XYZ is where you want to be. In some cases, these tips work out to the advantage of all those who risked their grocery money or mortgage payments. In many more cases, however, those types of tips do not work out.
See, investing is a lot like the game of poker. While skill and knowledge are clearly valuable, there is always an element of luck. Even the greatest companies with the greatest results can see their stock price plummet… based simply on an outlook that was moderately lower than what investors had hoped for. Continue reading ‘Rogue Mutual Fund Investing’ »