People are always selling something, whether it’s a subscription service, a point of view or simply an idea. Social media has now given people a voice and influence like never before, and it can be pervasive. You can drop something to your followers on Twitter that is completely fake and have them believe it 100%.
This perverse way of getting attention is front and center in the finTwit community. The same for Facebook, LinkedIn and Instagram. Many people have been led astray by charlatans trying to make names for themselves presenting false data or twisted narratives. It’s very easy to accept someone’s thoughts or ideas when it appears they have the knowledge or experience to make these representations. But we should always be on our guard for misinformation, or at the very least, mistakes
Here are some tips to handle that complimentary advice people are dishing out:
*Steer clear of those with years of experience who tend to preach. Some guy with “25 yrs at Goldman Sachs” in his Twitter profile who now trades on his own knows a few things but probably not more than you.
*Beware the carnival barker. This guy will pound you into the ground with his ideas, which once in a while hit. The problem is, he/she will be wrong for a while before a win comes around, and all you’ll get until then is deafening silence (if you’re lucky).
*Consider what you’re paying for and the value of the advice. If it’s free, there may be little to no value. That’s not to say you cannot use someone’s ideas, even against them (short or buy puts against someone’s long-only advice). You be the judge.
*Trust if you must, but always verify. The charts/technicals won’t lie to you. But someone who has a position working may just tell you what he wants you to believe, and you may buy into it. You’re just asking for trouble here. Make sure you know what you’re seeing very clearly.
Finally, find the people who are not loud or boisterous but who simply want to help guide you. It is often the quiet and focused ones who deliver the highest quality of work. There are many of these good people out there to assist and help you find your way.
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