My uncle told me to buy a specific stock right before it crashed

My uncle, who's been trading for years, called me last March and said to put $5,000 into this tech startup stock. He was super confident, saying it was a sure thing. I did it, and within two months the stock dropped over 60% after a bad earnings report. I'm torn because he's usually right, but this was a huge loss. So, do you listen to family advice even when it goes wrong, or should you always do your own research first? What's your take?

3 comments

3 Comments

spencer81mo ago

Honestly my cousin gave me a hot tip once and I still looked at the company's cash flow. Ended up skipping a total disaster.

sarah8181mo ago

Trust but verify, always. My dad gives me stock tips sometimes and I'll look into them, but I never just throw money at something blind. Even experts get it wrong, and a bad earnings report can tank anything. You gotta do your own homework before risking your cash, family advice or not. It sucks to lose money, but it's a good lesson to never invest based on just one person's say so.

leo_fisher1mo ago

My uncle pushed Tesla at $300, but I still checked their debt load first. Saved me from a nasty drop last quarter.