Be Weary About Your Source

What side do you fall on?

For every argument there is always a counter. In virtually any aspect of life there are people willing to buy or sell, whether it is a tangible object or an idea. The key is landing on the side that benefits you the most.

Some people feel oil production is on the decline, while others feel we are just at a bump in road. Even in this horrible housing market homes are being bought and sold. On the stock market, many buy the theory the worst is behind us as other do not. When it comes to investing there can really never be one true answer. After all each investment is essentially betting against somebody else.

No matter what side of the fence you fall on there will always be an opposition on the other side.

What does this all mean?

Don’t listen to everything you hear. Whether it be forums, message boards, or just people in the community there will always be some sort of bias. That doesn’t mean they are right, yet it doesn’t mean they are wrong. It is up to YOU to decide what is the best opportunity for YOU.

You may have heard of penny stock scammers. They are the ones who send you those great tips on a breakout stock, and most of the time this stock is under $1.00. Their main goal is the hype up the price only to cash in on an eventual short position, which will make them money and lose you lots.

We are in a greed driven society and many will do whatever it takes to succeed. Even if that means to lie or “embellish the truth.” For example, in the stock market, John Doe may have bought into a company thinking they were on the rise. Suddenly the stock starts to tumble. Now, in order to save himself, John might start floating around false or “embellished” information.

So, who cares if average John Doe is spreading some rumors?

Well, what if it wasn’t just John Doe? What if it was one of those respectable guest or analysts on the news channel? What if it was some authority on the web needing to get out of a jam? With many followers that grab every word they say. Suddenly you have many more John Doe’s.

The Key Lesson

Be careful when taking advice from anybody on anything. You may really never know what there biases are, previous or current experiences, or if they really even know what they are talking about.

Sure you can take everything in, but, at the end of the day, your decisions will ultimately effect YOU and John Doe doesn’t care about YOU.

This article was not meant to tarnish the reputation of anybody really named John Doe.

image source – kaltoons.com | this article is based on TWI article from June 14, 2008