10. You’ve seen the ad on BNN. You know the ones we’re talking about. Those canned 30 second spots that has a clip of a mine, and a brief interview with the CEO saying good things. While they might be true, it’s up to you to figure that out. Don’t invest only on what you see in a paid advertisement.

9. e-Mail newsletter. They promise that *this* stock is going to be huge and go through the roof. Sounds pretty awesome. You only need to get out before everyone else does. That is not a game worth playing my friends. Again, good for ideas, but don’t trust them in the least, ignore them completely if you must.

8. The biggest gainer/loser of the day. One day run up in a penny stock could be a good thing, or an anomaly and the same goes on the down days. It might be a good way to find stocks that are moving, but find out what is behind the move before you decide it’s worthy of your money.

7. The tip your co-worker gave you. If your co-worker were a great stock picker he probably wouldn’t be your co-worker, he’d be your rich former co-worker.

6. String three letters together. Probably a bit absurd, but hey people have done crazier things. Typing three letters and seeing what turns up is just playing Russian roulette. It might be fun the time you make money, but there are more bullets than blanks in this gun.

5. Online forums. There are a lot of trolls and pumpers out there. You’re playing right into their hand if you blindly follow them.

4. Pure play commodities follower. You hear gold is going through the roof (or falling flat) so you invest in a junior gold mining company but are confused when you don’t see it matching the returns that gold is making. That’s because there’s a lot more going on there than you think. Time to brush up on your analysis skills. Price of gold is only one factor and depending on the company might not even be the biggest driver of value.

3. Your friend’s company. Your friend works for a bio tech firm that is publicly traded AND they’re curing cancer! Sweet, except your friend’s view of the company is generally not that of an investor but of an employee, and at worse it’s insider trading which is something you should avoid. So avoid this way of picking a stock.

2. Volumes. Volumes of shares traded can be deceiving and there’s a lot more I could say on the subject of volumes, but needless to say there is a lot more underlying to volume activity that you’ll need to know besides how actively it is traded. Namely, answer the “why” question.

1. Because I said so. First off, I would never ever tell you to go an buy a stock. I share with you some of the stocks I’m watching and track their performance, and even if you like them, it’s never a recommendation to buy. You will need to do your due diligence always.

There are no shortcuts, but if you want to learn how I pick my stocks, I can show you.

There’s even a special offer until the end of September too (find out more).