| We've all done it. As part of our due diligence, we | | | | understand their methodology, and establish a track |
| invariably find ourselves on the message boards found | | | | record of effective trades. |
| on Yahoo! Finance, or Stockhouse. While being an | | | | Here are some other tips: |
| excellent source of entertainment, is there any real | | | | 1. Watch for someone who posts on only one |
| benefit to even visiting the bullboards? | | | | message board. Most investors hold several positions |
| The short answer is no. | | | | at any one time. We've all done our due diligence and |
| The obvious reason why message boards provide | | | | are well versed on a company. If someone is posting |
| little in the way of credible information is because | | | | on only 1 board, they may be there for a reason other |
| everyone who posts a message has a bias, whether | | | | than the welfare of your portfolio. |
| bullish or bearish. So you will end up with an overly | | | | 2. Watch out for the poster who continues to be |
| optimistic picture of the company, or an overly bearish. | | | | overly bullish or overly bearish on a stock. Dont |
| Somewhere in the middle is the truth. | | | | confuse enthusiasm with bullishness. The posts will be |
| Its not difficult to spend hours reading through the | | | | obvious. |
| posts, many of which are quite entertaining, however, | | | | 3. Watch out for someone who continues to post that |
| offer little in the way of useful information. Any info | | | | news is coming. While even a broken clock tells the |
| that can be culled from a bullboard can typically be | | | | right time twice a day, if someone knows that news is |
| found on the company's investor relations pages. | | | | coming out next week, that may be insider info, or, |
| Another reason why bullboards are quite ineffective | | | | they may be hyping the stock. If you are in a good |
| for your portfolio is the same as the biggest problem | | | | stock, it wont need to depend on good news to prop it |
| that has faced every forum since its inception: | | | | up. Anticipation of good news normally keeps those on |
| invariably, the internet has provided everyone with a | | | | the fence from selling, and that is what a message |
| soapbox from which to preach from, and most times | | | | board scammer is looking to do. |
| its garbage. | | | | 4. If you notice that someone has a short history as a |
| Just as you wouldnt ask a complete stranger advice | | | | member of that message board site and they begin to |
| on which car or house you should buy, you should be | | | | post that they know all about the company, it may be |
| weary of who you get your investment advice from. | | | | time to put them on ignore. |
| Whats in it for them. | | | | 5. If you find that someone is posting under different |
| That said, message boards can provide an opportunity | | | | identities, its also time to put them on ignore. |
| for a small group of likeminded investors to trade | | | | The only information that you can take as truth is the |
| ideas. After reading through tens of thousands of | | | | nickname the person has used. After that, you have to |
| pages in the last 8 years, I have only found about 5 | | | | judge their posts and eventually, you will notice who |
| people who's opinion I would trust my hard earned | | | | can be trusted, and who cant be. |
| money with. It took years of following their posts to | | | | |