The worst advice you can get

Don't. Take. This. Advice.

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Free advice, my old man used to say, is worth what you pay for it.

Which might be true. But people actually pay real money for bad advice. Which is even worse.

Buy BHP Billiton Limited (ASX:BHP) because, well, it's BHP. Uhuh…

Buy Qantas Airways Limited (ASX:QAN) or Virgin Australia Holdings Ltd (ASX:VAH) because people will always need to fly. They may… but no-one says ticket prices have to be high enough to earn a profit for the airlines.

You need Woodside Petroleum Limited (ASX:WPL) because 'you need energy exposure'. Yeah, and you need arsenic exposure, too, right?

Buy gold. Because when the excrement hits the air circulation device… you can, umm, eat it?

Buy puts because when the market tanks you'll make money. Yep, just don't count the small fortune you lost on those puts while you waited for the downturn.

Sell half when you've doubled your money, so you're playing with the house's money. No, it's all your money. If the investment sucks, sell it all. If the investment is great, keep it all.

Pop-psychology is dangerous. So is pop-finance. And yes, even some of the stuff that feels 'smart', well, often isn't.

Motley Fool contributor Scott Phillips (TMFGilla) has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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