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If you have signed up for any of the free investing newsletters out there, you most likely receive numerous emails daily telling you about the newest and greatest stock available. All you need to do is spend your money on their paid subscription and the free report will be heading your way. My advice to you is to beware. Let me give you an example of how some of these so called experts tout their knowledge.

I signed up for a free newsletter that promised to send me a new hot stock pick weekly that showed promise of doubling in price within thirty days. You could get even better information buying their software product. I wanted to test the picks. The first pick was a stock from China and it dropped considerably in price in a short time.

The next was one I found intriguing so checked into it. I actually did like it and I bought 300 shares. Well, it tanked. I did not put a stop loss in place so needless to say, I am down at the moment however, I do still see this stock going up because of certain circumstances on the horizon so I’ll stick with it.

The next stock dropped as well and lo and behold, the fourth pick shot up in price. Next day here comes his newsletter bragging about his pick and saying Warren Buffet doesn’t get returns like that. Seriously. The stock went up but not that much and certainly did not double and, as a matter of fact, within a week all the gains were gone.

The lesson to learn from this? The newsletter is going to point out any successes they may have had in the past and they will completely ignore the ones they misread. Completely.

You need to beware of these so-called gurus. Some of them are very knowledgeable and you can learn from them. Just don’t ever accept what they say without doing your own research. Thoroughly investigate the company you are considering. Watch their stock and see how it is performing. Read their financial reports.

There is no one out there who can correctly tell you a stock is going to double or triple or break all records. Take time to learn all you can learn about investing and read what these experts have to say as you can learn from them.

Never, however, under any circumstance, simply buy stock on someone’s recommendation alone. They may even be trying to get the stock to go up in value so they can make a profit. It is buyer beware out there.

Bob Blick is the owner and webmaster of the Investment Digest website and the popular Financial Security Blog. You will find a lot of good and valuable advice to help you prepare for a prosperous financial future…

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