Originally posted by HanHao:
everytime everybody gives the same advise : "you gotta do your own research", "gotta read up yourself"
i am not a professional, and i am sure many of those ppl who dispense that piece of advise are no better. and when i ask them to comment whether the stock would bring any profits, most of them try to sound intelligent by saying "this stock is risky". DUH
i understand that nobody has a crystal ball and cannot be 100% right all the time. but i am sure it is possible to reduce risk and turn the odds in profitable favor
since research reports are done by professionals with facts and figures to go along with it, wouldnt it be a good idea to act upon their advise if they have consistantly made accurate predictions.
or does it ultimately boils down to Heng vs Sway?
I believe you heard about the number 1 rule when it comes to investing. It simply is DO NOT HAVE A HOLY GRAIL MENTALITY TOWARDS STOCKS. There is no such thing as a 100% accuracy when it comes to investing. Even Warren Buffet accuracy is not even 100%.
The purpose of research reports is to give the reader a basic idea on what the researcher feels of the share based on fundamental data. In order to increase the odds of you being a winner, SOUND and personal judgement must be exercised. Ultimately, you are responsible for your own investments.
Heng vs sway probably occurs in situation when there is a market depression or a financial crisis.