Should You Use the Internet to Explore Investment Ideas?

It’s amazing how quickly the internet has become such an integral part of our lives. Most of us are easily old enough to remember clearly a time when the internet didn’t exist and there was no such thing as email, let alone online shopping.

Of course many of us use the internet for research and exploration purposes just as much as we use it for other reasons. However not all internet sources are reliable. If you are using the internet to explore various investment ideas, it is important to ensure you verify your sources and only go to those you know you can trust.

Here are some tips on how to make sure you don’t go astray when you do your research in this way.

Start with well known sources

There are plenty of reliable sources you can use as a starting point. Websites belonging to banks and other financial organizations will provide you with lots of facts. Just remember they will usually only present the information as it pertains to their own business. For instance they’re not going to present their own investments as anything other than the best ones on the market. They’re certainly not going to mention the competition!

Bear this in mind as you explore the vast array of information the internet has to offer.

Use blogs as another source of information and opinions

Blogs tend to focus more on opinions than regular web articles do. They are often written in first person from a single viewpoint, so they can provide further insight into a particular investment opportunity.

However you should make sure you seek out opinions from both sides of the fence. For example you might come across a blog written by someone who has made a lot of money on the stock market. They would understandably be enthusiastic about the possibilities the stock market offers to those who are willing to dip their toes into this area. However they may not make any mention of the potential downside of this area.

To this end you need to find a blogger who is perhaps against the stock market or hasn’t had a lot of success with it. This way you can find both sides of the equation and evaluate them both in your own time.

Bottom line – you must come to your own conclusions when doing research online

Finding investment advice online is much the same as deciding whether or not to buy a book. You read about the book, you read a selection of positive and negative reviews, you think about them and then make the decision on whether to get it or not. Also, make sure that you have money to invest. Don’t add to your debt by taking a payday loan online just because you learnt about a stock thats a sure thing.

Of course choosing a book isn’t as important as choosing investment advice. However you may still go to the same place to get the information you need to make that decision – namely the internet. So by all means enjoy researching investment topics online, but just make sure you edit and censor the information you receive before acting on it in any way.

One Response to Should You Use the Internet to Explore Investment Ideas?

  1. Tushar,
    Other than financial organizations’ sites, what other resources do you check regularly? Are there some reliable ones that compare competitors for you?

    Thanks.

    -Christian L.

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