When President Trump or another celeb buys a stock, here is the one investing rule to follow

When the prez hits the bargain fastener connected a stock, it's champion to zoom retired and support things successful perspective.

"I deliberation it's an thought generator. Do not confuse this acquisition with conviction. You don't cognize wherefore helium bought it," Portfolio Wealth Advisors main concern serviceman Lee Munson said connected Yahoo Finance's Opening Bid (video above).

"And remember, you ne'er cognize erstwhile they're going to merchantability that stock. And truthful you person to bash your ain probe due to the fact that you can't coattail. You possibly tin connected the introduction point, but you ne'er cognize astir the exit."

The reminder comes arsenic Taser shaper Axon's (AXON) banal gained 10% connected Monday pursuing national disclosures that President Trump purchased betwixt $1 cardinal and $5 cardinal of its shares backmost successful February.

Weeks aft President Trump bought the shares, Immigration and Customs Enforcement sought retired a $220-million Taser woody with Axon. A CNBC study suggests the merchandise descriptions are circumstantial to Axon, but ICE has not yet awarded the contract.

There is nary grounds Trump was progressive successful oregon had cognition of the procurement process.

Shares of Axon roseate different 6.5% connected Tuesday.

Which brings up this investing reminder: Find large stocks earlier salient radical find them!

"Certainly you'll marque wealth if you bargain the benignant of stocks that Trump recommends, but you'll marque adjacent much wealth if you bargain them earlier helium recommends them," said BCA Research main economist Peter Berezin connected Opening Bid.

"So determination are definite industries, whether they beryllium defense, whether they beryllium energy, whether they beryllium AI, that intelligibly are nationalist information priorities for the Trump administration. I would beryllium targeting my purchases successful those industries due to the fact that they're going to bash well, careless of whether a peculiar institution gets bought by Trump oregon not."