Stocks in themselves are not a bad investment. In fact, they can be a downright good investment. The problem comes when you take advice from sources without doing the proper research yourself. This can be anything from overhearing a stock tip in the elevator to reading about a hot stock in a magazine article. The important point to remember is that if you haven’t done the proper research, you are setting yourself up to have a bad experience with the investment.
- I bought shares in a stock, called JDSUniphase. I read an article in Money magazine that said this was a great stock to buy. It was $120 a share when I bought it in 1999, in the year 2000 it dropped when the bottom fell out of tech stocks. It now goes for about $3 a share!! – submitted by ima saver
- I bought 200 shares of Roxio on a tip from some loud mouth money magazine which said it could be the next Microsoft. I paid $10.25/share. I immediately knew it was a mistake and sold 150 shares for $9.25. By the time the ipod caught on, it knocked NAPSTER formerly Roxio out of the water and I had to sell at a sad $3.25. Add in the cost of the commission for buying, selling, and then selling. Forget about how long I “waited for it to go back up” Oh well, it happens to the best of us. I think I’ll stay with the blue chips. I don’t know what I was thinking anyway. – submitted by Duchesse