I was reading a thread about someone calling others to sell them products and it quickly reminded me of my stock broker days working in this plush office in La Jolla. It was tough then. Anybody who is a stock /futures broker want to comment on the current environment for keeping clients and getting clients? Robert
rumored: a vp of eagle asset management (RaJa's high end shop) goes through 'a bottle of Tylenol a week.'
First of all if your clients trust and like you (that means they havent been killed with house stocks) you should set a gameplan with them. For starters, bring them back to reality and the days of making 20% in a month are long gone and are likely not to return in 10 years. Have you evaluated a few scenerios which would include the strong likelyhood of a true market correction, meaning the DOW trading at 7500-8000 this year? What if that # is too conservative and we test the true trendline of 5600 not too far away? Does any of you clients have some buying power to grab at those bargin prices or would they HAVE to sell? Are they prepared to sell some positions currently held at painful losses to ease further losses? Are you proactive with clients about safe sell stop rules like NEVER hold if more than 10% loss (us pros prefer 5%). Stop holding someones hands because PFE isn's coming back anytime soon and poor IBM is well below 100. Personally, the fear has yet to kick in and do not be surprised when naz breaks 1K this year. Would you pay 100 times earnings for csco AND intc for negative growth?
Or you can just keep cold calling and sticking suckers with the about-to-tank house stock of the day. Even after the first big loss, you can get another trade or two out of them "to get their money back" before they wise up. Have you seen the new Schwab commercial? Let's put some lipstick on this pig! At the boiler room where I (very briefly) worked, commissions for the stock of the day would routinely be 30-50%. So when you finally get a client, you could put them in a real stock and make $30, or you could stick them with the "stock of the day" and make 3-5 grand.
Hey Chasinfla at 23.56 average posts per day. Are you actually trading ? You will surpass Don Bright soon in a few months with that level and him being at 7 posts per day. Where do you guys find the time to post so much? Robert