Prof. Tyler yamazaki

 
Avoid following Expert Advice all the time
When you are a beginner, you may find it helpful to search the net for
pieces of advice coming from the so-called “experts.” This is a common
mistake because not all of these “experts” are real experts. These days, it is
fairly easy to spread a word and promote one’s self online. In fact, if you
are good at marketing, you can easily project an image that you are an
expert stock investor even if you have not invested in a single stock in your
life. It is also worth noting that even the real experts also commit mistakes
from time to time.
The best way to avoid relying on expert is to develop your own
understanding of the stock market. After all, what separates an expert from
a complete beginner is that an expert has his own view of the stock market
and is able to support his view with reasonable defenses, while a beginner
usually relies on what other people say. Of course, this does not mean that
you should never take the time to read or listen to what the experts have to
say. Rather, this only means that you should take every message or advice
with a grain of salt. Instead of relying on what experts have to say, you can
use their views as additional references to help support your own
investment strategy.
 
Beware of the Pump and Dump Scheme
The pump and dump is a common scheme that you should watch out for.
Unfortunately, although people are aware of it, many still fall for this
fraudulent scheme. So, how does it work? A business or person who owns
stocks promotes his stocks and spread positive rumors about them. This is a
promotional hype that oversells the value of the stocks. This will tend to
draw more attention to the stocks. In turn, this will increase the price of the

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stocks. When this happens, other investors will offer to buy the stocks
thinking that they are a good investment. Now, after the sale of the stocks,
the promotion and bad rumor will stop. The price of the stocks will then
begin to dwindle down. After all, the true value of the stocks is lower than
its value or price during the promotion. The end result is that the seller of
the stocks makes a profit, while the buyer possesses a stock whose price is
uncontrollably falling down.
Take note that the pump and dump scheme is not a completely bad thing.
As you can see, you can take advantage of it and earn a profit. The key is to
buy the stocks before or immediately right after the initial part of the pump
and dump scheme. You then have to sell them just before their value begins
to drop. The best way to do this is to sell the stocks after you see even just a
small amount of profit. Do not wait for the promotion to stop. After all,
such is outside your control.