The Fourth Way To Become A More Successful Trader: Forget About Stock Tips

[Brendan Egan]

This is the fourth article in a series of articles that will examine ways to become a more successful trader in any market and on any time frame.

Step 4) Forget About The Stock Tips

I was talking with one of my private coaching students about hot stocks and why I avoid the "stock tips". If any friend of yours, or worse yet a stock broker, give you a "hot stock pick" you should avoid trading it at all costs. Let's face it--you are responsible for YOUR money in the market, not your friend or stock broker. As we learned earlier, you need a specific trading plan and need to look for very specific things before placing a trade, so this means avoid stock tips at all costs.

Additionally there are companies out there that get paid to promote stocks. If you are ever reading a website or blog that is promoting one specific stock, in general a lower volume stock or penny stock, be sure to read the site's terms of use and disclaimers as they will have a disclosure about this (or are supposed to). A better rule of thumb is just avoid these sites all together and learn how to actually trade for yourself--you will do a lot better this way in the long run.