I'm a newcomer to the stock market. The financial news is part of my daily routine. I follow the stock recommendations day after day. But can I really rely on them? Isn't a stock recommendation often placed deliberately?

I like listening to them, but I try to make my decision entirely on my own. A stock recommendation ultimately steers investors, and who knows who is behind it. I'd rather read the relevant trade magazines and specialist literature to learn what I need to pay attention to. But when all is said and done, the stock market still holds the most surprises.

Everything in the world is always changing, and so is the stock market.

Finding the special stocks!

The real gems are the outsiders nobody expects. I haven't ventured into highly speculative trading yet. I have to work too hard for my money and have no play money. But the appeal is big. A total loss is something I simply can't afford.

Where my ears do perk up is a stock recommendation for younger companies. What goals does the company have? What vision is behind the ticker?

One stock doubled for me this year, and I'm toying with the idea of putting half of that profit into a company hardly anyone has on their radar. Still, the company is interesting with its forward-looking projects. In the worst case, the profit is simply gone. Which I don't want to assume at all and can't really imagine.

But here is what you should never do when you invest in stocks:

  • Buy stocks with borrowed money
  • Use your retirement savings
  • Use the emergency fund from your savings account
  • Use the money you need for everyday expenses
  • etc.

Anyone who invests in stocks should be able to do without that money if necessary.

I keep my tips to myself!

So that I don't leave myself exposed, I keep my stock recommendations to myself. Few people in my circle of friends trade stocks, and I quickly learned to hold back. Otherwise they want to know which stocks I've picked up lately. "So, how big were your gains last year?"

My father always said: "Son, never talk about the money you have. If you have friends, you don't need enemies!" I always keep that saying in the back of my mind and prefer to talk about the stock market in general terms.

That way I can't go wrong and I'm not exposed. Who would really begrudge you a hefty profit? Especially when others have to work hard for their money, right?