| |
| |
|
|
Investing Information |
|
Larry, Moe and Curley, Investment Brokers
Larry, Moe and Curley were sitting in their favorite restaurant just off Wall Street having their usual 3 martini lunch and were discussing the day's events and their client portfolios. Larry:"I had 12 calls this morning from customers wanting to know why the market was going down". Moe: What did you tell them?" Curley: "Yeah, what", taking another gulp of his libation. Larry: "You know, the usual. This is a normal correction and not to worry. I am watching your account. The market always comes back." Moe: "That's the same BS I tell them." Curley: " I have more than 300 accounts and I can't watch them except my 5 big traders. Who cares about the others anyway? My company won't let me tell them to sell when their stock starts down and they believe the old saw about 'hang in there for the long haul'. I blew out of all my stocks last week. Thank goodness. The market has dropped 300 points since then. Moe: "It would be better for the customers if our company would let us tell them to use stop loss orders." Larry and Moe, shouting in a single voice: "Don't say that or we'll get fired". They both bonk him on the head spilling his drink. "Nyuk. Nyuk." Yes, it may sound funny, but there is more truth than fiction in that imaginary conversation. Why don't brokerage companies tell their customers to sell when the market is declining? There are two reasons. First any large brokerage does not want to get on the bad side of a company. That company might have a public offering later on and they will definitely not be asked to sell any of the stock or bonds. This is where the big money is on Wall Street. The second reason is they don't want the customer to have cash in his account. He might take it out. Brokers make money even if you do not trade. It is not much, but it does keep the pilot light lit. Brokers also discourage customer stop loss orders because it is more paper work for them and then they do have to watch your account. Unless your account is high 6-figure or 7-figure you are not on the radar screen. Mr. Broker (an appropriate name for what he does with your money) has an average of 300 accounts and many have 600 or 700. As new guys come into their office they give them the little accounts. When a broker passes his securities license he is given two manuals. One is SEC regulations that must be followed and the second is how to open accounts. There is no third manual on how to protect customers' money or trade. Brokerage companies want their salesmen to follow the company line and push certain products. There is no thought of customer protection. If your broker is Larry, Moe or Curley it is time to find a new one. Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
MORE RESOURCES:
Investing - Google News |
|
|
|
RELATED ARTICLES
Six Principles of Successful Investing 1. Begin investing immediatelyProcrastination is the number one enemy of investing. Time is Money and We Are Running Out of Both! One of the fundamental principles of finance is the concept that $1 today is more valuable than $1 a year from now.Making adjustments for inflation, the dollar will buy less goods and services next year. Evaluating A Money Manager Scams and frauds are designed to take your money through false promises and phony claims. Money management is supposedly designed to increase your net worth. Making It Second Nature Not long ago I was laying on my son's floor throwing one of his toy balls back and forth in the air to myself and I had a strange revelation. I noticed that as I threw the ball up in the air my left arm automatically started to move to where the ball was going to come down. Out-Of-State Investors Check List of Questions The following lists of questions are suggested questions to ask before you plan to purchase residential real estate outside of your neighborhood.It's probably best to speak with at least three licensed real estate sales professionals and three property managers in the area. How To Find An Investment Advisor Do you think you need an Investment Advisor? Hold on before you answer because this is sort of a trick question. Also, I am definitely biased because I am an Investment Advisor. Lessons in Transition Q: What have been the most successful approaches to attracting direct foreign investments: offering prospective investors tax breaks and similar benefits, or improving the overall investment climate of the country?Empirical research has demonstrated that investors are not lured by tax breaks and monetary or fiscal investment incentives. They will take advantage of existing schemes (and ask for more, pitting one country against another). Oil and Gasoline Price Uncertainties The Light Crude Continuous Contract hit an all-time high at $70.85 a barrel, while Unleaded Gasoline Futures spiked 50% or $1 a gallon on Tuesday. Variable Annuities You know all the articles you read about annuities that have extremely high fees? And the ones that people lose a lot of money in? Well, these are better known as variable annuities. yes, they do have some advantages. Why You Need To Buy and Sell Gold Coins (Part 2) How to Collect Rare Coins For Fun and ProfitTime has proven that collectors tend to make the most money in rare coins because they search out "undervalued coins" and buy during market lulls. Buying in today's market climate offers you superb upside profit potential. Finding a Broker "Hey Joe! I need help finding a broker. I notice that discount commission rates are pretty much the same. Investing in Car Dealerships: How to Do It Right The financial characteristics of the automobile dealership are attractive:". . Economic Survival in the 21st Century - the Three Key Questions to Ask In this "special report", I want to pose a few important "philosophical questions" to my readers. Firstly -- our Federal Reserve Chairman, Alan Greenspan, addressed the effects and implications of our aging population on things such as Social Security again in a speech that he made last Friday. Dont Catch a Falling Knife One of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is the phrase used to describe the habit of buying stocks that are in "freefall", and is a poor strategy, albeit common among new investors. The Cost of Green Eggs and Ham Young readers know that March 4th is the birthday of Dr. Seuss. Is Offshore Banking for You? You've probably heard about people who keep their money offshore. Most likely you assume they're all wealthy businessmen; millionaires, who have so much money they somehow 'qualify' to move it out of the country, right? Wrong! Offshore banking can be a benefit for anybody regardless of income. 401(k) Plans I've been in and interested in the stock market so long (one year shy of forty years) I can remember when the mutual fund pages in my home town paper were just one page! Now it looks like there are more mutual funds then there are stocks listed on the New York stock exchange.I wonder how many billions of investor dollars are supporting these funds. Effective Advice For A New Generation of Investors CATCHING A FALLING KNIFEOne of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is a habit, common among new investors, of buying stocks that are in "freefall", and it's a bad idea for an investment strategy. A Gadfly On A Dinosaurs Butt, Or The Hood-winking Of The American Investor Have you ever noticed how some words in the English language are so perfectly named for what they describe? And how some words seem to be, I guess you could say, backwards? For instance, the word sunflower! How wonderfully aptly named is the sunflower, that beautiful yellow flower that follows the sun from sunrise to sunset.And then there are those words in the English language where there meaning appears to be backward, so to speak - like parkway and driveway. Discover the Foundation of Retiring Wealthy - The IRA! Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course.
|
||||||||||||||||
