The stock market is full of stock tips some good some bad. But not every tip out there is worth listening to. Here are a few stock tips that people give which are not necessarily the best advice out there.
The first tip is that in order to make money in the stock market you have to know everything about a company. This is not true, there are plenty of successful investors who get into a company only knowing a few selected things about it. In fact it is nearly impossible to know everything that happens, your best bet is just to find a strategy that works and stick to it.
A second misconception comes with earnings. If the company is about to announce that they have increased their earnings by 10% it does not mean the stock will jump 10%. Many times the market is a forward thinking object. A lot of times the expected increase would already be factored into the market. Now if the market is wrong it may see a big spike or dip when the true numbers are announced, but then again a stock may not move very much at all even if they did have a major increase in earnings if that increase was already expected and factored into the market.
