 |
|||
| |||
 |
 |
 |
 |
|
|
| ||||||||||||
| ||||||||||||
|
Stock Investment Advice
Stock investment advice is easy to find. Do you get cold called by brokers with the latest investment tip? I have, as have countless others around the globe. And many of us have lost a lot of money to these people. So, how can you avoid some of these pitfalls? In general, if you get cold called by anyone, the best stock investment advice that I can give you is to leave them alone, no matter how appealing, or how plausible the sell is. Many of the people and firms who operate in high pressure sales environments, operate outside the law. And these people usually start with a cold call. If You Are Cold Called, Steer Clear - Rule 1. Remember that the tactics used can be very cunning. It is not unusual for disreputable firms to start gently. They will warm you up with a 2 minute call, which invariably will get you excited at the prospect of making some money, on the basis of a deal "which hasn't come off yet", but they will call you if it does. And it will. And so will they! They often quote shares which are listed, usually on the nasdaq, and it is within my experience for this to occur whilst the price of stocks rises as predicted. Believe me when I say that I was caught, and the the stock prices were being manipulated (this was the subject ultimately of an SEC investigation). Double Check All Information You Are Given - Rule 2 Another favourite ploy of the crooks is if they know you have previously bought shares which are worthless, they will come up with some cock and bull story about a takeover or a similar machination, and offer ridiculous amounts of money for worthless shares. All YOU have to do is pay a fee to release the funds. And guess what. You will lose more money! If It Sounds Too Good To Be True - It Probably Is! - Rule 3 If you are contacted by anyone you don't know, contact your local regulatory authority, and check them out. If the broker is not known to them, stay clear. Ask Your Regulatory Authority - Rule 4 Ask at the outset if the stocks being peddles are restricted. Most of the cases I have come across where victims have been defrauded, have involved the infamous regulation S stocks. If the stocks in question are regulation s, and you might have to push the point, then don't get involved. Ask If The Stock Is Regulation S - If They Are - Run - Rule 5 For many of us, this advice will come too late, and we have already been caught. If so how do we know we have been caught, and can we complain? There are certainly some questions that one can ask oneself which, can help make your mind up if you might have been caught. Ask your self the following, and see if the scenario applied to you:- 1. I didn't understand, and it was never explained to me, that the shares I was buying could not be sold for at least one year and possibly longer. 2. I didn't understand, and it was never explained to me, that the shares I was buying were not traded on a proper stock exchange and might never be traded so might never be sold. 3. I didn't know, and wasn't told, the extreme risks associated with Regulation S stocks, up to and including a swift loss of up to 100 per cent of my capital. 4. My personal finances and my investment needs make me unsuitable as a buyer of Regulation S stocks (e.g., because I have a modest income and cannot afford to take risks, I am elderly and cannot afford to wait in the hope shares will be quoted in the future, I am retired and cannot replace lost capital). 5. I would never have agreed, had I known, to an investment where the company whose shares I was buying was actually making a very large payment to the broker. This would have destroyed any feeling that the broker was making a recommendation for my benefit and not in return for payment. 6. Sales calls from the broker were very enthusiastic and almost promised big, fast profits; this was misleading. 7. The broker never recommended 'normal' shares to me, but only Regulation S stocks, as if these were the only shares suitable for my needs. 8. Every Regulation S stock I was sold (or almost every one) collapsed and became worthless or near worthless. The law of averages suggests this is not just bad luck but bad skill on the part of the broker who recommended every one of them so enthusiastically, and made a profit on each sale. Some of you reading this might think that this is flight of fancy stuff. Well, I can assure you that it's not. This is the real world, and real people get hurt. Robin Banks has been a victim of investment stock fraud, so is well placed to give advice to others on how to avoid it.
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Time Out Are you paying any attention to your retirement savings? Do you have it in cash or an account with a broker? Maybe you have a professional manager who is investing your money as you add to it every month.Is your account increasing in value every year? If it isn't why are you letting anyone else invest for you? There is no point having a loser in charge of your money. Hill of Hope Just about now everyone is confused as to which way the stock market is going to go - up or down. For the past 3 years it has been headed south, but the Wall Street experts have told us that the market never goes down 4 years in a row so this has to be an up year. Mutual Fund Ball and Chain The broker told me not to sell because the mutual fund I owned had a 2% redemption fee and they would penalize me if I did.I got to thinking about it and did some simple math to see what that would cost me if I sold. The Inside Scoop on Mutual Fund Rip Offs The bear market that showed up at the end of 2000 has every brokerage house-as well as the entire mutual fund industry-scrambling to find creative ways to boost both their image and bottom line. Unfortunately, this is often at the investors' expense. Intervention Intervention. Now don't let that big word scare you. The Next Bull Market We are already in it, but you can't see it. It doesn't look like the one we had in '99. How We Eluded The Bear Of 2000 The date October 13, 2000 will forever be embedded in my mind. It was the day after our mutual fund trend tracking indicator had broken its long-term trend line and I sold 100% of my clients' invested positions (and my own) and moved the proceeds to the safety of money market accounts. Stock Trading - Daddy, Why Arent We Rich? One Saturday morning, while he was sitting at his computer studying the market, David's 7 year old daughter came up, tugged at his shirt sleeve, and said, "Daddy, why aren't we rich?" He looked his child in the eye, and thought to himself, what a great question - Why aren't we rich?As she stood there expectantly waiting for an answer, he struggled to come to terms with the realization that, although he had focused his complete attention on trying to create wealth for more than 10 years, he had never actually made any real headway.He had bought and sold many Stocks and several properties over those years, but had never made any real money. Exchange Traded Funds Primer Exchange Traded Funds (ETFs) are a group of passive index funds that trade on an exchange like an individual stock. At the time of writing there are 162 ETFs with $220 billion in assets under management trading on U. The Stock Market Investor's Worst Enemy Every stock market investor faces one primal enemy. An enemy so perverse, it will drive thousands of investors from the stock market through its ability to defeat even the most practiced investment strategy. 10 Tips For Creating Wealth From the Stock Market 1. Do not spread your money too thin. Being Wrong Buying Stock is Okay Being wrong is OK, but let's not carry it to extremes. That applies to everything, but let's limit our discussion here to the stock market. Selling Strategies - Setting a Stop Loss Sometimes the best way of lowering exposure to risk is not to invest at all! However, when we make the decision to jump into the muddy waters of the stock market, its always a good idea to have a life jacket ready, just in case.We all have stories of that "must have" "can't lose" stock that looking back, we didn't really need to buy, and it definitely lost. Understanding a Stocks PEG Ratio A PEG ratio cannot be used alone but is a very powerful tool when integrated with the basics (price, volume and chart reading). You must enjoy crunching numbers and have a calculator handy to estimate your own PEG ratio. Shadow Bull As one of my regular readers you know I have been a stock market bear for the past 2 years and have encouraged everyone to put their money into a money market account or a short-term no-load bond fund and for the more adventurous what is called a bear mutual fund that goes up when the market goes down. Just being in cash as outlined in my book would have saved 40% or more of your money. Swing Trading Strategies Using Swing Trading Strategies and Technical Analysis when Trading Stocks to Make Consistent Trading Profits.This article is one small part of a series of lessons using Swing Trading Strategies and Technical Analysis developed by WD Gann which are designed to show how anyone can build a profitable Stock or Commodity trading business from scratch. A Good Fund Manager Every Wall Street analyst, financial planner and broker will tell you that the right way to pick a mutual fund is find a good money manager of a fund that has a long time record.Yes, I believe that too, but it is amazing that when you go back in time to see what this genius did with the mutual fund, you will find years he has had some terrible losses. The Shadow The Shadow knows. There used to be a radio program called The Shadow where the hero, Lamont Cranston, the Shadow, would overcome the shadowy forces of doom by clouding the vision of those around him. Stock and Fund Dividends When is a dividend not a dividend?The latest thing "conservative"brokers are preaching these days is to buy stocksthat pay dividends. Everyone likes dividends. Discover the Biggest Trading & Investing Online Mistake Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets - option trading, forex trading or currency trading, stock trading, future or commodity trading etc? in such a short amount of time?Most online investors / traders interact in devastating forms of thinking, which convinces the mind to the point where the trader believes that an educational enhancement ability that develops superb market research skills is not important.
|
| home | site map |
| © 2006 |