Follow the Analyst...

C

cashmoney69

I've been thinking, yesterday when i was doin research, i would go on msn money and yahoo finance and read what the analysts had to say, then it hit me....why am i doing all this research and analysis when thesee guys get paid millions a year to be "right" about price movement and earnings estimates. So why not go to the "Analyst coverage " section of yahoo finance and the "top rated" section of msn money http://moneycentral.msn.com/investor/srs/srstopstocks.asp

to get access to a list of stocks that have already been compiled by experts in their field and chosen sector....

So i guess my question is, why do anymore research if we can just follow the analysts on what they say?, after all, the firms they work for do.

- Nate
 
firms get paid from the company which stock they need to promote and they pay to analyst to start vomiting about that particular stock. So this is not fair. If you rememember in internet bubble. it was created by the so called analyst. :) :) :p :eek:
 
Quote from cashmoney69:

I've been thinking, yesterday when i was doin research, i would go on msn money and yahoo finance and read what the analysts had to say, then it hit me....why am i doing all this research and analysis when thesee guys get paid millions a year to be "right" about price movement and earnings estimates. So why not go to the "Analyst coverage " section of yahoo finance and the "top rated" section of msn money http://moneycentral.msn.com/investor/srs/srstopstocks.asp

to get access to a list of stocks that have already been compiled by experts in their field and chosen sector....

So i guess my question is, why do anymore research if we can just follow the analysts on what they say?, after all, the firms they work for do.

- Nate
More...

when you get more experience you will learn to ignore analysts.
 
there was one a site ranked analyst by his call, it was greeted with much fan fare from financial communities, so the power that be wiped out the site , now I can't even remember the name of that site. :(
 
When most (>80%) all the analysis become bullish and everyone is talking about that stock, short it. You will do much better.
 
Quote from cashmoney69:

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So i guess my question is, why do anymore research if we can just follow the analysts on what they say?, after all, the firms they work for do.
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LOL. With that approach to trading, you'll have a very short career. Better that you put your money contrary to their ratings. Numerous studies over the years have shown that betting against analysts is far better than trading on their recommendations.
 
vhehn

lol, i'm only 20, i dont know much about markets, but what about when it comes to earnings estimates?.. they make these predictions and when they are right either the market goes up, or down... look at GM, Ford, intel, and a few others...

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