The NASD's New Commander
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I can't drink, never was able to (even in the Army).
They (retail investors) tend to panic and sell at the bottom then get super bullish at market tops and take out second mortgages to buy stocks.
[quote=mikebutler222][quote=ymh_ymh_ymh]
"Retail" aka "individual investor" is what I meant. [/quote]
Gotcha. The usual use of the term "retail" is to describe those FCs that deal with the general public. Individual investors are just that, and I agree, they have an incredible talent for buying high and selling low.
[/quote]In your post above you said that you assumed that she was using "retail" to describe individual investors and not how "we normally use it."
How do you normally use it, if it's not to describe individual investors?
[quote=ymh_ymh_ymh]
I can’t drink, never was able to (even in the Army).
They (retail investors) tend to panic and sell at the bottom then get super bullish at market tops and take out second mortgages to buy stocks.
[/quote]I forget who said it, may have been Joe Granville. "It's time to sell when Time Magazine has a bull on the cover."
It's known as "The Odd Lot Theory" and is as good an indicator of the market as there is.
[quote=Knows Wall St.] [quote=mikebutler222][quote=ymh_ymh_ymh]
"Retail" aka "individual investor" is what I meant. [/quote]
Gotcha. The usual use of the term "retail" is to describe those FCs that deal with the general public. Individual investors are just that, and I agree, they have an incredible talent for buying high and selling low.
[/quote]
In your post above you said that you assumed that she was using "retail" to describe individual investors and not how "we normally use it."
How do you normally use it, if it's not to describe individual investors?
[/quote]
A "retail investor" is someone who uses the services of a "retail brokerage" (think ML, MS, SB, etc..) an "individual investor" is that poor fool who thinks he's saving money by making losing trades (based on his “research” which usually entails watching Cramer, buying Money Mag. and listening to what his neighbor says made him a buck or two) but doing so with only $8 commissions.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
The former would buy high and sell low, if left to his own devices (but his FC stops him), the latter usually commits slow financial suicide, all the while telling himself he’s better off doing it himself.
[quote=Knows Wall St.]
[quote=mikebutler222]
More than his spelling and grammar errors
what interests me is how he can endlessly pontificate about today’s
clients as if he knows anything about them or even how business today
is conducted. <o:p></o:p>
[/quote]
What do you mean I don’t know about today’s client? I am the epitome of today’s client–the HNW Baby Boomer.
And I do know how the business is conducted which is why I am a critic of it.
[/quote]
So we DO have SOMETHING in common Newbie…
There's an "interesting" situation going on with Pegasus Wireless (PGWC:NDAQ) and TD Ameritrade right now. For the past almost 2 weeks, AMTD has had a "thou shalt not buy" trading restriction in place for their retail "investors" even in cash accounts. Their rationale is they don't want them losing any more money, or so they tell them.
FD: no position long or short in that security. There have been 2 NY Post stories on it, 1 NY Times one, and even a Barrons' expose.
[quote=mikebutler222]
The former would buy high and sell low, if left to his own devices (but his FC stops him), the latter usually commits slow financial suicide, all the while telling himself he’s better off doing it himself.
[/quote]Is that right, a retail broker at, say, Merrill will "stop" a client from making mistakes.
Damn, I didn't know that. How do those retail brokers get to be so smart?
Why do you suppose clients at a firm like Smith Barney ever lose?
You've got the answer, the formula. You should let somebody know.
[quote=Knows Wall St.] [quote=mikebutler222]
The former would buy high and sell low, if left to his own devices (but his FC stops him), the latter usually commits slow financial suicide, all the while telling himself he’s better off doing it himself.
[/quote]
Is that right, a retail broker at, say, Merrill will "stop" a client from making mistakes.
Damn, I didn't know that. How do those retail brokers get to be so smart?
[/quote]
Again, not having been a successful FC yourself, this will be news to you, but an FC can keep the individual investor from making the most common mistakes they (the individual) make while they slowly commit financial suicide in a number of ways. <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
The most common are;
1) by understanding what of all the noise of information is actually important
2) by stopping them from over concentrating positions
3) by stopping them from chasing the hot dot
4) by having them stick to their financial plan when fear and/or greed makes them want to toss that all out because of today’s transitory events
I could continue, but your STFU light is hurting my eyes…
[quote=mikebutler222]
<o:p></o:p>
The most common are;
1) by understanding what of all the noise of information is actually important
2) by stopping them from over concentrating positions
3) by stopping them from chasing the hot dot
4) by having them stick to their financial plan when fear and/or greed makes them want to toss that all out because of today’s transitory events
[/quote]Why do you think you're more capable of interpreting the news than your client? Do you have specialized training?
How do you prevent a client from establishing a concentrated position? I can see how you can advise them, but how do you prevent it?
How do you stop them from chasing a hot dot if they want to? Are you going to not execute an order, or are you going to execute it and cover yourself with a unsolicted letter, etc?
I do, somewhat, agree that it is possible to keep them from jumping out of the building--or from getting all worked up in a buying frenzy. However, I also submit that you are not really that much smarter than they are and everytime you step up and offer advice there is a 50/50 chance you're wrong.
You see, I've been there and done that--for thirty five years I did it at one level or another.
[quote=Knows Wall St.]
[quote=mikebutler222]
<o:p></o:p>
The most common are;
1) by understanding what of all the noise of information is actually important
2) by stopping them from over concentrating positions
3) by stopping them from chasing the hot dot
4) by having them stick to their financial plan when fear and/or greed makes them want to toss that all out because of today’s transitory events
[/quote]Why do you think you're more capable of interpreting the news than your client? Do you have specialized training?
How do you prevent a client from establishing a concentrated position? I can see how you can advise them, but how do you prevent it?
How do you stop them from chasing a hot dot if they want to? Are you going to not execute an order, or are you going to execute it and cover yourself with a unsolicted letter, etc?
I do, somewhat, agree that it is possible to keep them from jumping out of the building--or from getting all worked up in a buying frenzy. However, I also submit that you are not really that much smarter than they are and everytime you step up and offer advice there is a 50/50 chance you're wrong.
You see, I've been there and done that--for thirty five years I did it at one level or another.
[/quote]
It's called experience. I would have thought that by watching others gain it you might have learned something after 35 years "at one level or another". Obviously you weren't paying close enough attention.
No you have not "been there and done that". You've watched others "be there and do that". Now, if I needed to know where to get the best deal goin' on paperclips, or how to best dress to schmooze at a manager's meeting in Boca, you'd be my 'go-to' guy.
[quote=joedabrkr]
It’s called experience. I would have
thought that by watching others gain it you might have learned
something after 35 years “at one level or another”. Obviously you
weren’t paying close enough attention.
[/quote]
How long had you been in the business before you got a feel for it?
<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
[quote=Knows Wall St.] [quote=mikebutler222]
The most common are;
1) by understanding what of all the noise of information is actually important
2) by stopping them from over concentrating positions
3) by stopping them from chasing the hot dot
4) by having them stick to their financial plan when fear and/or greed makes them want to toss that all out because of today’s transitory events
[/quote]
[quote=Knows Wall St.]
Why do you think you're more capable of interpreting the news than your client? Do you have specialized training? [/quote]
Yes, without a doubt.
[quote=Knows Wall St.]
How do you prevent a client from establishing a concentrated position? I can see how you can advise them, but how do you prevent it? [/quote]
Sometimes you can’t. But after you’ve given your best advice, at least they’re committing suicide over your objections, not with your assistance. The best process is to work with people who value your advice.
[quote=Knows Wall St.]
How do you stop them from chasing a hot dot if they want to? Are you going to not execute an order, or are you going to execute it and cover yourself with a unsolicted letter, etc? [/quote]
If people make a habit of not following your advice, of buying things you recommend against, at some point you have to just dump them. While you’re working to that fateful day, document it every time you feel they’re endangering themselves with a course of action.
[quote=Knows Wall St.]
However, I also submit that you are not really that much smarter than they are and everytime you step up and offer advice there is a 50/50 chance you're wrong. [/quote]
I submit you haven’t the slightest idea what you’re talking about.
[quote=Knows Wall St.]
You see, I've been there and done that--for thirty five years I did it at one level or another.
[/quote]
No, you didn’t do it. You watched other people do it, and it’s not the same thing, Major.
No, you didn’t do it. You watched other people do it, and it’s not the same thing, Major.
Kind of like watching sex? You get the idea of it but never the feel.
[quote=babbling looney]
No, you didn’t do it. You watched other people do it, and it’s not the same thing, Major.
Kind of like watching sex? You get the idea of it but never the feel.
[/quote]Oh this is soooo fun! DOGPILE ON NEWBIE!
I ask again, how long were you in production before you felt that you understood the challenges and how do deal with them?
[quote=Knows Wall St.]I ask again, how long were you in production before you felt that you understood the challenges and how do deal with them? [/quote]
Why is it you want to change the subject, again?
[quote=Knows Wall St.]I ask again, how long were you in production before you felt that you understood the challenges and how do deal with them? [/quote]
Do deal? What does that mean?
I ask again, how long were you in production before you felt that you understood the challenges, and how to deal with them?
Six months? A year? Two years?
Surely by your fifth year you had it down so that from then on it was almost mechanical for you. Right?
[quote=Knows Wall St.]I ask again, how long were you in production before you felt that you understood the challenges, and how to deal with them?
Six months? A year? Two years?
Surely by your fifth year you had it down so that from then on it was almost mechanical for you. Right?
[/quote]
OK, is it challenges comma, or challenges without a comma? Because you've got it both ways and we'd really like to understand which way you mean before we answer.