What kind of goof goes on TV to give you free stock advice? First of all, if anyone had any special, and more importantly, consistent insight into the markets they wouldn’t be working for a living. They would be privately making tons of money behind the scenes without showing their cards.

Whenever you see a mutual fund manager on TV giving you advice, they certainly tell a nice story, they sound very educated and researched. But their pay is usually a percentage of the assets managed by the fund. Their goal is to get you to invest in their fund. The more assets they get, the more their pay is.

It’s similar to all those option trading seminars out there that promise to show you how to outsmart the market. If those systems really worked no-one would give away the secret to making billions for only a few hundred dollars. Besides, the more people who know the secrets, the less likely the secret will continue to work.

Look into index funds.

Tags: assets, billions, free stock advice, mutual fund manager, option trading, seminars, stock pickers, tons of money