I would like to hear from anyone who has actually made money from any recommended stock thru so called experts

Question

I receive tons of mail from supposed experts in finance, and they always show stocks that they supposedly picked and how they went up anywhere from 200 to 1,000%. Then you read the disclaimer and it shows how much they were paid to push this stock. I am 71 and have a little money that I would like to double and tried one already who gave TNEN.OB. Bought it at $2.46 and it fell already to $1.79 a share. If anyone has had luck with stock or a good outfit please let me know. Thanks
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Answer 1

What these "experts" do is pick a low price stock, put it in their little brochures, and then when everybody else jumps on the bandwagon, they were in first and make good profits.

Beware!!

You say you want to double your money, but don't say how quickly you want to do that? It is very easy to double an investment after 20 years, less so in 10. If you are thinking of doing it in a year or two, rather forget about it. I read a brilliant quote from Warren Buffet not 5 minutes ago: "I don't look for 7 foot rails to jump over, I look for 1 foot ones that I can step over quickly."

Or to use a cricket analogy: It is better to keep the scoreboard ticking over with ones and two's, than going out early trying to hit a six.

Answer 2

Dear Sir,

I have personally received hundreds of email from these "financial experts" or "insiders'" who is touting that "they have information that XXX stock is on red hot". There is only one place that these mails really deserve -- the Trash.

What we have here is a classic "Pump and Dump" fraud. They pump up the stocks price and then dump it to you. The fraudster would usually select some penny stocks that is pretty worthless and starts to stock up on their shares. In the process, you will see a sudden spike of trading activities. and the price will be traded upwards.

Once they have done that, they will contact individual investors such as us and say that these stocks are hot. Once you bought into their lies and starts to buy up those stocks, the fraudster will gladly sell their worthless shares to you in the market for huge profit.

My advice is to stay away from those unsolicited "expert advise". There are always hidden agendas. If you are serious about investing, get a stock advisor from a reputable firm. Internet broker, such as "tdameritrade", also provides research reports for their clients that could prove useful for your investing decisions.

DO NOT trust those smooth talkers who claim that they can get you very high returns for your investments. If he is that great, why does he need to give you a piece of the action? I know I won't. I will be investing my own money and getting all these huge returns, rather than peddling my service.

Cheers!

Answer 3

There are several issues you stated that alarm me. First off, these are NOT experts by a long shot -- I still have yet to meet one of these "experts" after 10+ years as an institutional wall street professional (buy and sell side). I pulled up your TNEN on Bloomberg and there was no analyst providing numbers for the company. THis is not a bad thing, but, when combined with the financials, the background of the company. I also pulled a holdings list, two names were on the list...
Back in Aug/Sept there was definately something going on, but that was then. I don't know about the company, but do know the industry as well as several very respected institutional investors in that space -- all of whom would likely say they have no idea about it.
As to finding the next 1000% gainers...you can find them, but it really requires a lot of reading, talking to others, looking at financials and so on. I recommend reading Barrons, small cap research from wall street firms.
Next, I question your decision to invest in penny stocks (those under $5) after stating your age and that you have "little money". I would strongly consider working with an investment group to allow you to diversify your assets w/o substantial costs, spread the reading with others, and avoid the "experts".
Finally, many experts have the CFA behind their names. Go to www.aimr.org to learn more about this designation which is highly respected by REAL professionals.

Answer 4

Yes, I have.

You may make some money for a period of time (a few of years).

Then at some point you will lose 70% to 90% of it all. I have done this and I have seen many successful investors (or so called) and YES even Financial Advisors / Financial Planners do it (Fee Based and Comm.). No one is immune from this Risk of Loss.

You Must Learn to Respect the RISK of the markets. The Risk is Real! One you hear somebody say its different this time.....Run for the hills!


My God.....Stay away from any stock that has a .OB or a dot anything after the symbol. It is hard enough with listed stocks.

Answer 5

You might want to check out http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can read posts on investing from the best traders, as well as share your own investing ideas. There is a charting feature, so you can see how your portfolio performs compared to the S&P 500. Also, you can create your own "group" so that you can see how you are doing compared to your friends.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

* The idea here is that you want to get stock ideas from people who have already proven that they are good investors.

Hope this helps.

Answer 6

The problem is: you're trying to make a " killing" on one stock, usually a very volatile one, they can go either way...big gain ..big loss...not exactly what you're looking for: TOO MUCH DOWNSIDE.
I have made money with some of thr recommendations of Eric Bolling, on CNBC's " Fast Money....
But, I'm talking 9% or 15% gains in a few weeks.. NOT a 50% gain in a week ( which the " mail- experts" claim or promise.)
Eric specializes in commodities, but also is extremely knowledgeable in related areas....I have made money on his recs of PSA... CT...VE...CTB......currently I am a little " heavy" in " refiners" TSO and FTO....( 9%+ in 3 weeks) he had charts showing that gasoline prices almost always rise from Feb. into the summer.....AND THEY ARE...even when crude oil prices slide!
Also made a nice profit in SKS during Nov-Dec...from a rec by anther guy on same show...Jeff Macke
Just throwing the info out....don't know if it's what you're looking for.
Good luck.

Answer 7

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Answer 8

Hi,

First of all, stay away from "professional brokers" and tips coming to you via e-mail.

Hey! They will say anything to get you to buy their junk. If it's too good to be true, it is.

Remember this, they are just sales people trying to sell you what their firm is pushing. They are not security analysts or financial planners, not even financial advisers. Trust me, I know from experience that they cannot be trusted especially with a million dollars. You risk losing it all. A million dollar account is known as a "whale" and they would love to get their greedy little paws on it and suck it dry. They just want to make commissions on what they buy and sell for the suckers, err...clients..

Risk avoidance is the name of the game.

You should sell TNEN immediately. Take your loss and then learn something about how to invest properly. The only stocks that go fast are much too speculative for someone your age, unless you can afford to lose your investment.

Remember, the harder I work, the luckier I get.

Penny stocks are great and speculative, but I would avoid the ones under a dollar a share. For example, Best Buy started at less than $5. So there are some good companies, but it takes a lot of digging to find the good ones. You are looking for companies with good earnings, little debt, low capitalization, and good P/Es. For stocks under $5, very few will meet these requirements.

Stay away from the pharms unless they have patented drugs - do not invest in generic pharms, no growth there.

Check out which business sectors are the most popular and invest in the companies in those sectors. The number one, two and three are: technology, health care, and cyclicals (retail). These change every few months.

Watch CNBC, but don't pay too much attention to the talking heads, except for Jim Cramer, the wild man - but he tries to teach you how to invest and has some great advice.

Get Jim Cramer's Real Money: Sane Investing in an Insane World by James J. Cramer

Listen to Jim Cramer on CNBC.com

Go to Clearstation for quotes and tutorials on investing at (http://clearstation.etrade.com/). Sign up is free. Look up a few stocks. Do their tutorials.

Get this book: Value Investing: From Graham to Buffett and Beyond (Wiley Finance) by Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, and Michael van Biema.

Another good book: The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of (Motley Fool) by David Gardner, Tom Gardner, and Selena Maranjian

Jim Cramer's Mad Money: Watch TV, Get Rich by James J. Cramer and Cliff Mason

I Want to Make Money in the Stock Market: Learn to Begin Investing Without Losing Your Life Savings! by Chris M. Hart\

Sensible Stock Investing: How to Pick, Value, and Manage Stocks by David P. Van Knapp

Stock Investing For Dummies (For Dummies (Business & Personal Finance)) by Paul Mladjenovic

All About Stock Market Strategies : The Easy Way To Get Started by David Brown and Kassandra Bentley

The Motley Fool Investment Guide and their Web site (http://www.fool.com/).

The Little Black Book of Microcap Investing: Beat the Market with NASDAQ/AMEX Microcap Stocks, OTCBB Penny Stocks, and Pink Sheet Stocks by Dan Holtzclaw

How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition by William J. O'Neil

Trading for a Living: Psychology, Trading Tactics, Money Management by Alexander Elder

Big Trends in Trading: Strategies to Master Major Market Moves (A Marketplace Book) by Price Headley

Extraordinary Popular Delusions & the Madness of Crowds (Paperback)
by Charles Mackay (Author), Andrew Tobias (Foreword) This book talks about the Tulip craze in Holland where people would mortgage their homes to buy Tulip bulbs. Same thing happened in 2001 - 2002 with the Internet bubble that brought the stock market to its knees. The dot com companies were the Tulip bulbs.

Buy Investors Business Daily. It has lots of tutorials and I like it better than the stodgy Wall St Journal.

Money Game by Adam Smith

Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics) (Hardcover)
by Philip A. Fisher. Recommended by Warren Buffet who took $100,000 and grew it to $34 billion!

Value Investing with the Masters by Kirk Kazanjian

Valuegrowth Investing by Glen Arnold

The 5 Keys to Value Investing by J. Dennis Jean-Jacques

The Intelligent Investor Rev Ed. (Collins Business Essentials) by Benjamin Graham. Warren Buffet was his student at Columbia.

The Money Masters by John Train

The Bogleheads' Guide to Investing by Taylor Larimore

Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor by John C. Bogle

Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics by Gary Belsky

Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! by Phil Town . See his Web site at (http://www.ruleoneinvestor.com/). Free sign-up. I got the book at the library.

Listen. You don't have to spend a lot of money on these books - most can be found at your library and those that your library doesn't have they can usually get from other libraries in your state.

Most of these books talk about stock and mutual fund investing, but for a good introduction to other forms of investing Gerald Appel has a great book called Opportunity Investing - How to Profit When Stock Advance, Stocks decline, Inflation Run Rampant, Prices fall, Oil Prices Hit the Roof and Every Time In Between.

First, Break All the Rules: What the World's Greatest Managers Do Differently by Marcus Buckingham and Curt Coffman Not a book on investing, but it's a nice segue into the next book.

Now, Discover Your Strengths by Marcus Buckingham and Donald O. Clifton

Go Put Your Strengths to Work: 6 Powerful Steps to Achieve Outstanding Performance by Marcus Buckingham

Finding your strengths is important when investing. These books teach you to build on your strengths, what you a good at. Everyone is good or passionate about something. Why not get better at what you are good at?

Another good book is: Opportunity Investing: How To Profit When Stocks Advance, Stocks Decline, Inflation Runs Rampant, Prices Fall, Oil Prices Hit the Roof, ... and Every Time in Between (Hardcover)
by Gerald Appel

Most mutual funds do not even keep up the the return on the S&P. That's like 99% of them.

Vanguard Index funds are a no brainer.

A CD is better than a savings account. They range from six months to several years. You cannot touch your money tho until the time limit is up.

Check out this Web site on Direct Investment Plans where you can buy shares directly from companies: (http://www.fool.com/School/DRIPs.htm). Usually no fees and you can buy one share at a time.

Bonds are probably the safest. You might try a bond fund. They might return 5 or 6 percent. At 5% a million would return $50,000 a year - not a bad income. Remember, you have to pay taxes on the $50,000.

There are also municipal bonds and the income from them is taxfree especially if you buy them in a state that offers them, but they only pay about 3%, but it's mostly taxfree.

Kindest Personal Regards,

Walt Brown
Site Build It Certified Webmaster
[e-mail]

P.S. This is a life-long learning process. Reading these books and applying the rules to analyzing stocks that may be good It takes time. Be patient and keep reading and listening.

P.P.S. Internet has lots of good stuff, for example (http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_conve
Stockcharts.com is very good and their discussion of MACD is one of the best, barring its originator, Gerald Apple, but now we are getting into Technical Analysis and that is not for beginners.