Misleading Information 6 ~Listen to expert’s advice should help higher return

Listen to expert’s advice should help higher return. They know better than me, and therefore they can’t be wrong too far since they are specialized in investment knowledge.

 This is the most common error for beginners. Most beginners started investing by listening to advice from others who claimed to have knowledge in investment. When they fell victimized, they gave up investment all together.

Experts in general include trained professional like sales agents, market columnists, investment analysts, financial reporters, investment commentators, famous and successful investors and many more others are all have their different strengths and shortcomings when they release their views or comments about certain financial perspective. They are all restricted to their own subjective circumstances or even biases. For example, a sale agent while representing his or her own fund house having a campaign to push sale target of certain fund, he or she would be loaded with information only about good and beneficial side of the fund being pushed out. Therefore, this agent can never be objective and reliable.

Financial analyst reports, regardless of how credible they are, still cannot be depended on. In order to show impartiality, they often stated at the footage that they don’t own any personal interest in the affair or stock being reported. But they would never mentioned they didn’t take any royalty or fee from whosoever because of the report. Many big players in the market often hire free lancers to write articles favoring their positions. Because many retail investors do read news article in the financial market. These articles sometimes can influence market behaviors.

Sometimes, we do read about certain successful investors, or billionaires commenting certain direction on the market or suggest anything about commodity buying and selling. All these are not necessary trustworthy. Some of these people may be releasing something favoring their own interest too.  For example, if a tycoon who are expert in trading gold makes a press conference calling to buy gold. He might be the one selling gold profiting over the retail investors later on.

We, therefore, have to be very discrete when it comes to objectivity in screening through all these information assimilated over financial media. Be an expert yourself. This will come after some time in the process of learning investment.  Follow advice from experts sometimes do more harm than help. Because all these so called “experts” have their own agenda, subjectivity, biases, individual motives, that you would never know. All these reports can be treated as references only.

Furthermore, no one size fits all people. Every investor have their own timing and stages in financial growing experiences. Following another expert or successful investor will make you trapped rather than profiting at times. This advice of course includes treating my blog too. Take them as references. Do not follow blindly. Do your own study and research, follow advice only after you see it fits your circumstances. Because you know your own circumstances better than anyone else.


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