Any time you make the decision to make an investment you will encounter a middle man, whose objective is to close the deal by any means necessary. Furthermore about three quarters of time the sales pitch will not include assurance of the success of the stock investment. The financial advisor’s only concern is to reach his quarterly sales quota that requires him to sell a certain amount of investments each week. Realize, only you have your best interest in mind when it comes to investing.
A widely known issue among stock market investors, is you don’t really know if your broker really wants to see your stock portfolio succeed.Why of course they may appear to really have your best financial interest at heart during the sales process, but once the deal is done it is a whole different matter altogether. Most of the time, once they have made the sale your “best interests” go out the window. As an experienced investor with almost 10 years of dealing with stock brokers, I know now that these guys all really have absolutely one objective in mind and that is to close the deal. Once you make the decision to start investing you need to understand that your financial goals are not your broker’s financial objectives. In order to uncover their real intentions, you will definitely training and experience.
One time I received a voicemail from my stock broker introducing a newly formed company in which he was seeking an investment commitment. So I called him and proceeded to ask him a couple of questions about the company. I realized that he did not know much about the company that he was trying to get me to invest in.How could a guy not know the specifics of a company that he was trying to sell me on? He was only concerned about making a sale to make a commission. By understanding stock market basics and how to analyze companies you will be able to formulate solid questions that will help you expose a broker for who they really are.
To everyone brand new to stock investing, in order to protect yourself from these fast talking brokers, you have to be well versed when it comes to stock market investing. You truly need to develop a healthy dose of skepticism of any claims of higher than usual investment returns. Additionally, you should try to increase your knowledge of stock market investing through educational resources along with special trainings specific to the stock market. And trust me there are many guides, manuals, cd’s, videos and investment websites that can help you really improve your knowledge of stock market investing so you really have no excuses. This way you will be able to ask all the questions that really need to be asked so that you will be able to make a wise investment decision.
By performing your own research you can really shield your hard earned cash from dishonest stock brokers who really just want to take it. As far as I am concerned, I want the strongest barrier between my money that I worked hard to attain and insincere advisors, so I really try to educate myself on the stock market and research different industries to find corporations that I feel make sense to invest in. If you understand stock market basics and how to research a stock you will be able to check on figures presented by your stock broker. I totally realize now that I can’t completely rely on my financial advisors to perform research on my behalf or I risk a potential financial disaster.