Be Cautious With Market Analysts…
A very common mistake many investors make is to rely on others for their investment decisions. Very much like the weather, market analysts are merely forecasters of the stock market. While it is true that market forecasters base their opinions and views on their research, these opinions are always subject to bias. Sometimes the analysts that you see on television giving extensive praise to a certain company are actually being paid by that very company. That can definitely sway an “opinion” when a paycheck is on the line. Always look for another analysts opinions and be ready to do your own research.

Do Your Own Research…
By doing your own research, your investment decisions can and will only be affected by your opinion of a certain company, not another persons. This can essentially increase your odds of outperforming the market and becoming a successful investor. With computers and wireless internet at our fingertips, it is really easy for any investor to stay up to date with any publicly traded company.

A Few Things To Research…

• Balance sheets and income statements are a great way to make sure a company is fundamentally healthy. Quarterly earnings reports can be a very volatile time to be holding a stock.
• See the Major Holders of the company
• Stay up to date with the latest news such as insider buying and selling.

There are many websites that provide this free information to anyone with an internet connection. Below are some of the better websites:

Marketwatch

Yahoo Finance

Securities and Exchange Commission (SEC)

If you enjoyed this post, make sure you subscribe to our RSS feed to get your Daily Dose!