Stock Market Experts

With something about the stock market all around you, weather it is the evening news or the annoying ticker on a website you visit it gets people wondering about the market. All the so called experts spitting what they think is best just amps up the interest. So whats the deal with the stock market and should experts buy and sell recommendations be followed.


First let me say that I am by no means an expert or am I going to make any recommendations I just want to give people something to think about when it comes time to invest.

So the experts say to buy this and sell that company, but what makes them reach this conclusion? Well from observation I have seen many experts recommend buying a stock because the stock price is on the rise and the future looks promising, and on the other hand I have seen the same ones recommend selling a stock because the price is dropping and you want to cut your losses before they are to large.

This all seems like sound advice taken at face value, but there are things to consider. The first thing to consider or remember is that when a stock price is going up there is a driving factor behind it, and that factor is like a wildfire that keeps growing. So basically people keep buying that stock, driving the price higher. So buying with the price going up is like jumping on a bandwagon. All of this may not seem like much of an issue, but most of the experts have a vested interest in the stock they are promoting. So once they feel the stock price has reached its ceiling they are going to sell, and depending on when you bought the stock you may be left high and dry. The reason you will be left out is because when an expert sells shares of a stock, people that follow that experts advice will also sell. This leads to a large sell off driving the stock price down, and if you get that news late, then you will probably be out some money.


Now if a stock price is dropping there is probably some sort of negative buzz circling it. Depending on the severity of the issue the company is facing experts might proclaim gloom and doom leading to an even larger sell off for that company. So here is the problem with following this logic; if an expert is screaming sell they more than likely are acting on fresh news released, and with fresh news a story is never fully developed. So the gloom predicted for a company could turn out to be just a hiccup.

So in conclusion following the experts advice can be like the blind leading the blind when the stock market is involved. Instead of listening to them with blind faith do your own research and reach your own conclusions, and remember none of the people running there mouths on the TV can even come close to a real expert like Warren Buffets return record.