Stocks to Avoid
If you are a new investor trying to navigate the unpredictable waters of stock markets, it is easy to be caught up with the wrong current and end up with a sinking portfolio. Tantalizing adverts and attractive news headlines that promise enormous returns may cause you to invest in the wrong type of stock.
Investing in the wrong stock can make your portfolio’s value plummet, and in some cases, may even cause you to lose your entire investment.
With that in mind, here are 5 kinds of stocks to avoid for a beginner investor.
Stocks to avoid #1: Over-hyped Stocks
Source: Investorsunderground
Characterized by their irrational and rapid growth, “trending” stocks that are hyped up by the media usually have underlying weak fundamentals.
They draw investors in like moths to a flame. The fear of missing out on the next big event in the markets, or the chance to make millions in a matter of days is why they are irresistible to some....