The Decision
A confident social media tip can leave out important facts. Before putting money behind it, check who is speaking and what supports their claims.
Check Before You Proceed
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If they offer investment advice or research services, verify the relevant registration, such as investment adviser or research analyst, in official records.
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Check whether they're paid to promote the investment or already own it. Even a registered person cannot guarantee your returns.
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Read official information about the investment. For a company, understand its business, finances and risks before relying on someone else's opinion.
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Ask whether it fits your goal, time available and existing investments. The creator may have very different needs and money to spare.
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Check when the claim was made and the evidence behind it. Profit screenshots and price targets don't show what you'll earn.
Common Traps
Following a tip because lots of people share it. Treating selected winning trades as a complete track record. Rushing because someone says the opportunity will disappear.
Pause If...
You can't verify the person's identity or required registration, profits are promised, or you can't explain the investment without repeating their sales pitch.
Never Ignore
Registration doesn't make every recommendation suitable for you. The person may be genuine and the investment may still carry risks you can't afford.
Final Reminder
Before following a tip, find out what the sales pitch leaves out.