I just read an article written by an investor who lost about $5K on hot stock tips. He heard these rumors, bought some penny stocks [thinking he'd make a killing] and lost a substantial percentage of the money he had invested. It had me thinking that maybe speculation based on the research of "experts" [whose intentions could be questionable] may not be such a great idea?
Of course it's not. If you have a great stock that you estimate to be the absolutely best thing on earth, then wouldn't you buy as much as you can and keep quiet about it? Of course you would. And you would keep buying as long as the valuation is low. Always make your choices yourself. You can read what others think (it's good to get other points of view and other people will pick up on things that you missed) but in the end it's your decision.
Listening on hints from so called "experts" are not really good. Self research is the best you can do because you have to check every detail about the company or companies yourself. This fact avoids that you will invest your money to early or overhasty. The second thing is that nobody should invest money he/she really needs to survive. This should be only money that is not needed by the investor.
Even if someone were to get the best advice, I feel as if the stock market is its own beast. The future may look bright for a company, but one step in the wrong direction can lead to plenty of money lost in the market. Everything involves risk, but I believe that advice from others can lead to a better educated decision on the part of the investor.
This guy sounds foolish. Penny stocks are notoriously dangerous. His eagerness to rush in blinded him to many other factors.