There can be a wide range of information sources to which you are exposed. Once people know you are involved in trading, it is very likely you will receive trading advice from all quarters, ranging from your distant relatives to your neighbour to the clerk at the local store. Nevertheless, some tips may be based on study, experience and expertise and yet this may not be apparent without further investigation or questioning. The point here is not to take offered information at face value but to conduct your own research to validate or discard the information.
Risk is a part of all online trading activity. You may acquire and process a large volume of information. Potentially you are likely to be exposed to information overload. Rather than seek the holy grail of absolute certaintly, it is better to consider the information evaluation process as minimizing risk and then to act based on your research, whether or not you "feel" absolutely certain.
Decisions are evaluated based on the filter of tips from other traders and your own research. It is healthy to bear in mind that the popularity of sources for tips can vary. What is a "hot" resource may be "in" one week and "out" the next. Far better to evaluate tip sources over a period of time and to investigate its reliablity and consistency.
Free information can be very useful to guide initial research. However it may also lack the depth required to make robust decisions which effecively minimize risk. Be prepared to cut your free information resource if it fails to be valuable in arriving at decisions on which you can take action.
Software for stock and trend analysis can be very helpful as part of your guiding processes. It can provide you with buy and sell signals. The key however, is that these signals should be consistent with your overall trading approach. If the software lacks the ability to be customized to match your own strategy then it is no longer helpful and my even hinder your success by providing inappropriate suggestions.
Adopt consistency in the application of your online trading strategy. Your chosen methodology should fit any tips you consider, not the other way around. Tips will come and go. It is unwise to change your strategy to fit the latest tip.
Finally, be aware of the various strategies and pitfalls when considering trading tips. Take the time to evaluate your information sources. Be true to your trading strategy and use tools which support your methodology.
Mark Crisp is the creator of the Stress Free Momentum Stock Trading System. An especially effective trading method that focuses on big moves for big profits. Mark also provides a complimentary copy of "The 7 Habits of a Highly Successful Trader" at http://www.momentumtradingsystem.com