Very few investors have a chance to talk to a stock broker from a large firm. Even if they do find themselves sharing a conversation with a real stock broker, it is unlikely that they will learn any trade secrets. It is not that brokers belong to a secret society. Brokers are often uncomfortable talking with novice brokers because it usually ends up in an argument.
There is so much evergreen, rehashed information on the Internet, that many novices are die-hard fans of out dated investing methods long before they ever learn how the brokers invest.
Avoid Hot Stocks
This is laughable in the investment world, but novice investors are constantly attracted to the hot stocks. Unfortunately, all the big money has been made before the stock became hot.
Cash Flow
The brokers do not worry about the news, politics, or business plans and propaganda of companies. Instead, they look at the balance sheets. Avoid any company that carries a high debt, even if it is in overdrafts and open ended loans.
A company with little debt is capable of losing a massive amount of sales, go through a restructuring, and step back into the market, without...