I can remember when I was a very young and naïve investor thinking that you could make a fortune just by following share tips from share magazines and newspapers.

I noticed that the smaller more illiquid shares in particular nearly always moved up strongly after a share tip from a magazine or newspaper, but I soon realised that it wasn't this easy.

Of course by tipping up a smaller company and presenting it to thousands of readers, then it's highly likely that it's share price will go up after publication, but unfortunately the market makers know this and will have marked it up when the market opens on the day of publication. Additionally they may charge wider spreads to make any readers who wish to buy pay a premium price.

So in all likelihood you're not gaining any advantage as the share price will probably have opened up a lot higher, and not only that but any increase that occurs subsequently will generally attract profit-takers and those investors who want to bank a quick profit, which will obviously drive the price back down.

So in my opinion it's a bit of a waste of time following share tips from magazines and newspapers if you're looking to make a quick buck.

However, they can be well worth reading because they can alert you to shares that are maybe off your radar and possibly worth a look, and they often conduct some thorough research on companies you may be interested in, which saves you a lot of time (although you should do your own research as well).

These publications can also feature some useful articles on investing so I believe share magazines and the financial sections of newspapers are well worth reading, but I don't believe you should follow any share tips given simply because thousands of other people are reading the same information, and the price will be heavily marked up already. I believe you should always do your own research and only use these tips as additional information only.

Also you should remember that these publications get it wrong a lot of the time as well. For instance, I can remember one publication tipping Northern Rock at 870p and again at 720p and now they're around 175p, so it's always best to make your own decisions and not rely on share tips from other sources.