New to investing with the EIS and considering your latest share tips? There are several ways to check if the share tips you’ve got are to be believed. Read on for an overview of 5 of the most reliable ways to check your share tips and how they can ensure you are prepared for your investment.
Research, Research, Research
You should never invest in a business which you know very little about, however with the wealth of information available via the web it shouldn’t take you long to find out more about any organisation. First of all get on-line and find out more about the EIS company in question. A company background should be accessible online for any Ltd companies worth investing in. Google News and Google alerts can be useful too. If you can’t afford professional investment guidance, take the time to research and everything you need to know is available on-line.
Check Share Price Trends
Although experience of technical analysis is beneficial when checking share tips and share price trends, common sense should be used by anyone less experienced in investing with the EIS. If share prices of the company have seen a steady decline you are unlikely to want to risk your money unless you know that remarkable changes are underway. Share prices are only unfairly published in very rare cases, so it’s not unwise to steer clear of any shares that show continual decline.
Check Industry Trends
Understanding industry trends is quite straightforward, if the industry the tipped company is within is on the increase an investment could be rewarding. In contrast, if the share tips direct you to a company within a declining industry trend you will want to avoid investing.
Read Press Releases
Press Releases are often written to promote, but it’s the occasional negative Press Releases that can be a very telling sign when it comes to investment. The inclusion of terms such as ‘Uncertain growth’ should ring alarm bells for potential investors and it is wise to consider whether it’s the right time to invest with the company in question. Using Press Release alongside share price and industry trends should be extremely influential in making your decision to invest or not.
Consider your Source
Think about who gave you the share tips? As with any financial commitment, it is always best to seek Claudia Vallve the advice of financial expert, in this case a stock market professional. Remember, there should be no rush to make a first time investment and applying for the help of investment experts can ensure you take as few risks as possible with your money.