PSA: The best stock tips are the ones you ignore, including the guru selling them.

[MJ DeMarco]

Just a reminder, anyone who is selling you stock tips doesn't have a clue what they are talking about.

You are the business model.

The big money is not in the stock tip, the big money is selling you on the dream of the stock tip.

Stock goes to zero, they win.
Stock goes up 1000%, they win.

Why am I bringing this up?

I've been cleaning out some of my old emails and I came across some stock subscription services I used to subscribe to. If you ask why I subscribed to such a service, it was because they came part as a "bonus" to technical analysis software.

Pretty much every tip was garbage.

In fact, one such stock tip that was going to the moon! was Invitae, when the stock price was about $22. This was just a few years ago.

Invitae is on the cutting edge and will make you millions!
Load up!
I'm buying hand over fist!
This stock will retire me early!

They filed for bankruptcy and their stock price is now barely 2 cents.

Another funny stock tip... RICKS which is a strip club operator...

Buy at this low price of $90!
I'm loading up!
This baby is undervalued! Back up the truck!

Had you taken his advice you would have lost 50% of your money.

Meanwhile the guy who told you to buy this stock?

He's still making a killing on his $149/mo stock tips.

 

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[MJ DeMarco]

My favorite marketing pitch all these guys use is selective hindsight pricing....

Had you bought Apple (AAPL) back in 19XX at $X, you'd have $XX,XXX,XXX today!

They used this statement as an argument for Invitae.

Except for every AAPL that they didn't recommend, there are 90,000 Invitaes, now priced a 2 cents.

 

[Robdavis]

Not contradicting what you are saying, but free tips can be a problem as well.

What can happen is that a tipster will have a subscription community where for a fee you get all the tips first. This gives you a month or two to get into the stock.

After that the tipster starts to drop hints about the stock as an advert to get you to join the community to see "the whole report".

Later the tipster continues this strategy of using the tip to promote the subscriber service, but they make the hints about the stock more and more obvious. So you no longer need to subscribe to work out what the hot tip is. A few minutes of research allows you to join the dots and get the tip for free.

When you check the chart for the tipped stock, you find that it has been rising nicely for the past few months, so having done your own research you decide to purchase.

Then the INSIDERS can exit with their profits, leaving you sitting on losses, hoping that the tipped company, which is usually is ridiculously long shot turns out to be good and so you can exit with a profit.

Obviously after a while you realise that you have been conned and so you take your losses and vow to ignore tipsters in the future.

 

[MJ DeMarco]

Not contradicting what you are saying, but free tips can be a problem as well.

What can happen is that a tipster will have a subscription community where for a fee you get all the tips first. This gives you a month or two to get into the stock.

After that the tipster starts to drop hints about the stock as an advert to get you to join the community to see "the whole report".

Later the tipster continues this strategy of using the tip to promote the subscriber service, but they make the hints about the stock more and more obvious. So you no longer need to subscribe to work out what the hot tip is. A few minutes of research allows you to join the dots and get the tip for free.

When you check the chart for the tipped stock, you find that it has been rising nicely for the past few months, so having done your own research you decide to purchase.

Then the INSIDERS can exit with their profits, leaving you sitting on losses, hoping that the tipped company, which is usually is ridiculously long shot turns out to be good and so you can exit with a profit.

Obviously after a while you realise that you have been conned and so you take your losses and vow to ignore tipsters in the future.

Yup, this is a whole different pump and dump game, a different ball game, but the same grift.

 

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[socaldude]

The only people who got rich were the private owners who participated in the IPO and unloaded bags to the public at a ridiculous valuation no one understood. They then probably paid themselves insane salaries and benefits. They're probably still laughing their asses off to this day.

 

[ZF Lee]

Having traded myself for a time, my take on this is to build a system that helps you recognise which 'stock tip' is totally bogus...and which might be a good fit for our own plans. Something that has proven rules that keeps you out of trouble, and actually meet your goals.

Tips vs systems.

MJ already gave us good examples of such systems.

The Paycheck Pot rules. And the INSIDERS options thread had a checklist too (although today's market is tacky)

Of course, there are some people who don't subscribe fully to the concept of entrepreneurship as the MAIN wealth vehicle. So they might pile in heavier into the stock market. Developing entire strategies around growth, dividend, value investing strategies...these can be considered 'systems' of rules and steps in their own right.

At the end of the day though, which 'system' gives you the most control?

And much time are folks willing to spend to find that out?

 

[Ing]

Same in the crypto space. There most likely they monitize by offering a affiliate link to a trading platform. You only get the infos, if you signed in with that link. So they get a percentage of the trading fees.

After googeling "chart patterns", everybody can do that without a risk and if you have the usual online marketing skills, really everone can be an influencer analyst for stocks and cryptos.
That s why these OG craps exist.

 

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[rory182]

Reminds me of the many clowns dominating twitter feeds with their tips, one being $WISH (down 99%)

The SEC announced charges in 2022 - gross behaviour, however people happily followed a series of tweets to put thousands of dollars in..rather than critically think it was a valuable investment.

SEC.gov | SEC Charges Eight Social Media Influencers in $100 Million Stock Manipulation Scheme Promoted on Discord and Twitter

www.sec.gov

 

[Einfamilienhaus]

Just a reminder, anyone who is selling you stock tips doesn't have a clue what they are talking about.

You are the business model.

The big money is not in the stock tip, the big money is selling you on the dream of the stock tip.

Stock goes to zero, they win.
Stock goes up 1000%, they win.

Why am I bringing this up?

I've been cleaning out some of my old emails and I came across some stock subscription services I used to subscribe to. If you ask why I subscribed to such a service, it was because they came part as a "bonus" to technical analysis software.

Pretty much every tip was garbage.

In fact, one such stock tip that was going to the moon! was Invitae, when the stock price was about $22. This was just a few years ago.

Invitae is on the cutting edge and will make you millions!
Load up!
I'm buying hand over fist!
This stock will retire me early!

They filed for bankruptcy and their stock price is now barely 2 cents.

Another funny stock tip... RICKS which is a strip club operator...

Buy at this low price of $90!
I'm loading up!
This baby is undervalued! Back up the truck!

Had you taken his advice you would have lost 50% of your money.

Meanwhile the guy who told you to buy this stock?

He's still making a killing on his $149/mo stock tips.

Speaking of RICKS. I've heard that every stripper predicts financial crises better than any financial expert. By judging the likelihood of a potential crisis by their clients' propensity to spend.

 

[Kevin88660]

Just a reminder, anyone who is selling you stock tips doesn't have a clue what they are talking about.

You are the business model.

The big money is not in the stock tip, the big money is selling you on the dream of the stock tip.

Stock goes to zero, they win.
Stock goes up 1000%, they win.

Why am I bringing this up?

I've been cleaning out some of my old emails and I came across some stock subscription services I used to subscribe to. If you ask why I subscribed to such a service, it was because they came part as a "bonus" to technical analysis software.

Pretty much every tip was garbage.

In fact, one such stock tip that was going to the moon! was Invitae, when the stock price was about $22. This was just a few years ago.

Invitae is on the cutting edge and will make you millions!
Load up!
I'm buying hand over fist!
This stock will retire me early!

They filed for bankruptcy and their stock price is now barely 2 cents.

Another funny stock tip... RICKS which is a strip club operator...

Buy at this low price of $90!
I'm loading up!
This baby is undervalued! Back up the truck!

Had you taken his advice you would have lost 50% of your money.

Meanwhile the guy who told you to buy this stock?

He's still making a killing on his $149/mo stock tips.

Seeking Alpha seems decent.

What’s your view on that subscription?

 

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