| If you are at all like me, then you are absolutely terrible | | | | learned is how to say "NO" when my stock broker |
| at picking stocks to invest in. Every time I have ever | | | | calls me with a tip. In this article I want to give you |
| tried to do this, it has ended up badly. I mean REALLY | | | | some advice on when to say no to your own stock |
| badly. I once bought a thousand shares of a certain | | | | broker. |
| telecom stock only to watch it plummet down to zero | | | | The first time you should say NO to your broker is if |
| several months later. I watched it go down, all the while | | | | they have a hot tip that about some coming "News" |
| thinking to myself "it's bound to head back up!"....but the | | | | that is just about to come out. "We've got to get in |
| company went bankrupt and I lost everything! | | | | before the news announcement!" they will say. You've |
| So I decided shortly after that to stop using the bargain | | | | got to ask yourself, if your little lowly stock broker |
| stock broker firms over the Internet that let you buy | | | | already knows about it, then everyone else and their |
| stocks yourself for like $9 bucks. Instead I went looking | | | | mother probably does too...so pass. |
| for a good full service stock brokerage firm that could | | | | The next time you should say NO is when the stock |
| give me good advice about what stocks to pick, and | | | | market is falling. Often your broker will say something |
| sort of tell me when I have made a terrible decision. | | | | like "The stock is WAY down, now's the time to buy |
| What I didn't expect was how dogged they would be! | | | | on the bottom because it has nowhere else to go but |
| Now I get phone calls from my broker every now and | | | | up!". That is not necessarily true...a stock that is falling is |
| then with tips on stock to buy. The thing I didn't realize | | | | falling for a reason and until you know what that |
| at first is that stock brokers make nearly 100% of their | | | | reason is, you should stay away. |
| income off of commissions. | | | | Finally, you should say NO to your broker whenever |
| The only way they make commissions is if you | | | | he attempts to get you to "average down". This |
| actually buy or sell stock! Stock brokers, therefore, are | | | | means that the stock has fallen a great deal and if |
| NOT buy and hold kind of players! They like to churn! | | | | you buy more now then your average cost of owning |
| Buy, sell, buy, sell, and a little commission goes into their | | | | the stock will go down making the potential gain (if a |
| pocket every time. | | | | gain ever comes) that much bigger. Like the second tip, |
| Ok, as long as I know that this is the game, I'm ok with | | | | stocks go down for a reason and you should not buy, |
| it...and I'm still willing to play. | | | | even to average down, until you know that reason. |
| The problem is, sometimes my stock broker is a little | | | | So there you have three solid times when you should |
| too enthusiastic when it comes to offering me the | | | | always say NO to your stock broker. |
| latest hot tips. One of the most important things I have | | | | |