Finding Stocks to Buy from a Broker

You have to be judicious when you are getting advice from stock brokers. They aren't the most objective. If you're new to the stock market, you may want to take a close look at where your investment advice is coming from. You see, stock brokers don't make money by giving you good investment advice. They make money when you make transactions. It doesn't matter if you buy or sell a good stock or a bad stock. They will make money either way. Stock brokers don't have a great economic incentive to make sure their advice is solid. There is some incentive. If they consistently give you terrible investing advice, of course, you'll notice over time as you start losing money. If you are a big money player, they may actually give you good stock tips. It's in their interest especially if they are charging you a fee based on the size of your transaction. You'll see it as a disclaimer on pretty much anything financial you read online or in any other publication. It's a section that strongly recommends that you get good investing advice before putting any money into the financial markets. There's a good reason for this. That is because many fool hearty people have lost a lot of money trading or investing because they did not know what they were doing. Those disclaimers, in addition to keeping stocks to buy themselves from liability, are there to warn investors of such folly. If you're one of those people who do not even know where to start, find a good financial planner. They will help you figure out your finances first. So that means they will encourage you to make a budget so you know how much you can put toward investing. Good investing advice starts with your personal finances. It may be hard and difficult to do this first, but it's a good place to start and a way to build a solid foundation for a comprehensive investing strategy. This is ironic because I am online telling you what you should do about investing. Well, let me give you some pointers about how to frame and fit in online investment advice in the bigger scheme of things. First of all, don't take everything you read online as gospel when it comes to investing. There are just too many opinions and people out there to take any of them for face value. Even they don't want you to do that. Just use it as an educational resource, but strict investment advice. Second, you need to get personalize investment advice from a real person, not an article. Again, it can help but consult a registered investment advisor before making any decisions or putting your money at risk. Third, don't believe everything you read and make sure you understand clearly what they are saying. Don't just take everything that is said online as fact. It helps to get the information from a credible source.