| If you want one. | | | | those with six and seven figure amounts are the ones |
| And I don't recommend any broker with whom to | | | | he calls. Those people with less then 100K seldom get |
| trade who will be giving you advice on what to buy | | | | attention. Understand you are on your own which in |
| and sell. When a broker speaks it is a eulogy for your | | | | most cases is best. |
| money. My definition of a broker is one who makes | | | | Be careful of any broker who advocates fading the |
| you broker. | | | | market. I can hear him now, "This stock has gone so |
| The reason I say this is that when I owned my | | | | low it has to come back". This is a death wish for your |
| brokerage company I hired and supervised over 300 | | | | money. Bottom pickers end up with smelly fingers. |
| brokers. The actual number of good traders I could | | | | A broker who calls you and says he has a "system" |
| count on one hand and have fingers left over. | | | | must be highly suspect. If that system is so good then |
| Let's understand that a broker is hired by a brokerage | | | | why is he willing to share it with you? He should be |
| company for one reason - to generate commission, | | | | independently wealthy by now. Be suspect of any |
| not to make you money. He is trained to analyze | | | | broker who calls you out of the blue with a "story". I |
| stocks or mutual funds, but not to protect your capital. | | | | don't care how good it is if you don't know this "Billy |
| Pitifully, he thinks he is. They never tell you to sell | | | | Sol". These guys refer to you as mushrooms. I wonder |
| before a stock falls to 50% of its value. Most of the | | | | why. Maybe because mushrooms are grown in the |
| time brokers are left to themselves as to what they | | | | dark and fed horse manure. |
| recommend to their customers, but there are many | | | | Never trade commodities with a stockbroker. There is |
| brokerage houses that will insist that they push some | | | | a world of difference in trading stocks and |
| particular stock of the day or new Initial Public Offering | | | | commodities. Stockbrokers don't think fast enough. |
| (IPO). Many times he has a quota - and you're "it". | | | | You shouldn't have someone who is used to driving a |
| Don't deal with a relative. Do I have to explain this? | | | | kiddie car trying to handle a Formula One. |
| If you live in a small town, don't deal with anyone who | | | | Make any broker prove what he says. Get |
| also lives there. You don't want everyone knowing | | | | references. What you want from a brokerage |
| your business and anyone in that local office can see | | | | company is proper execution of your order at a low |
| your account if they want to. | | | | price, not advice. Your best bet is a discount broker |
| The average broker has 300 accounts and you know | | | | because they are not allowed to give you "advice". |