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