Choosing An Investment Stock Broker

If you want one.

And I don't recommend any broker with whom to trade who will be giving you advice on what to buy and sell. When a broker speaks it is a eulogy for your money. My definition of a broker is one who makes you broker.

The reason I say this is that when I owned my brokerage company I hired and supervised over 300 brokers. The actual number of good traders I could count on one hand and have fingers left over.

Let's understand that a broker is hired by a brokerage company for one reason - to generate commission, not to make you money. He is trained to analyze stocks or mutual funds, but not to protect your capital. Pitifully, he thinks he is. They never tell you to sell before a stock falls to 50% of its value. Most of the time brokers are left to themselves as to what they recommend to their customers, but there are many brokerage houses that will insist that they push some particular stock of the day or new Initial Public Offering (IPO). Many times he has a quota - and you're "it".

Don't deal with a relative. Do I have to explain this?

If you live in a small town, don't deal with anyone who also lives there. You don't want everyone knowing your business and anyone in that local office can see your account if they want to.

The average broker has 300 accounts and you know those with six and seven figure amounts are the ones he calls. Those people with less then 100K seldom get attention. Understand you are on your own which in most cases is best.

Be careful of any broker who advocates fading the market. I can hear him now, "This stock has gone so low it has to come back". This is a death wish for your money. Bottom pickers end up with smelly fingers.

A broker who calls you and says he has a "system" must be highly suspect. If that system is so good then why is he willing to share it with you? He should be independently wealthy by now. Be suspect of any broker who calls you out of the blue with a "story". I don't care how good it is if you don't know this "Billy Sol". These guys refer to you as mushrooms. I wonder why. Maybe because mushrooms are grown in the dark and fed horse manure.

Never trade commodities with a stockbroker. There is a world of difference in trading stocks and commodities. Stockbrokers don't think fast enough. You shouldn't have someone who is used to driving a kiddie car trying to handle a Formula One.

Make any broker prove what he says. Get references. What you want from a brokerage company is proper execution of your order at a low price, not advice. Your best bet is a discount broker because they are not allowed to give you "advice".

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

[email protected]; 1-888-345-7870

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at

Money Magazine

If You Own a Mutual Fund, You Could Face an Unexpected Tax Bill This Year
Money Magazine
Despite the fact that the market is up only about 1% for 2018, investors in many funds could end up owing taxes on gains those funds realized by trading stocks or other securities throughout the year. That includes several funds from Vanguard — the ...

Avoiding the mutual fund tax trap | Rossi
2018 has been a year of mixed investment results for many investors. As a result, many asset classes year to date declines. Despite the fact that some stock investors may have lost money within some of their mutual fund investments, many will be ...

5 Vanguard Mutual Funds to Depend On
Risk-averse investors should note that VIHAX devotes just over 20% of its weight to emerging markets stocks, so this may not be suitable for extremely conservative investors looking for mutual funds to buy. However, eight of this Vanguard fund's top 10 ...

New York Times

The Market's Been Falling. I'm Putting My Money in Stocks Anyway.
New York Times
The stock market has been plummeting and my own retirement portfolio has been shrinking. Am I worried? Sure. But I'm still buying stocks. Week after week lately, I've been stubbornly funneling part of my paycheck into diversified equity mutual funds in ...

After Sour October, Fund Managers Gird For More Volatility, Trim Stocks
Investor's Business Daily
Ouch! That summarizes the shrinking performance by the stock market and U.S. diversified stock mutual funds in October. The stock market forecast? Fearing volatility ahead, money managers and strategists are flashing yellow warning signs about the ...

Keep more of what you make from your investments
Wall Street Stock Market Today · 5. Stock Market Prices Live · 2. Stock Market Investments · 6. AARP Term Life Insurance Rates · 3. Money Market Mutual Fund Rates · 7. Current Prices of Stocks · 4. Life Insurance for Over 50S · 8. Free Stock Market ...

Planning for mutual fund capital gains
Foster's Daily Democrat
It's year-end tax planning time, and this year it may pay off more than ever to take a close look at the mutual funds in your portfolio to ensure there are no surprises when filing your 2018 tax return. The long bull market in stocks has many actively ...

Closed-End Funds Seeing Consolidation
Aberdeen Asset Management Inc. rolled out plans last month to combine six different funds -- covering Latin America, small companies in emerging markets, Israel, Indonesia, Singapore and "Greater China" -- into a seventh fund focused on Chile.

7 Micro-Cap ETFs That Punch Above Their Weight
However, before you run out and buy a bunch of micro-cap and small-cap stocks, mutual funds, or ETFs, it's important to remind readers that over the past ten years, U.S. large-cap stocks have done marginally better than micro-caps and small caps. I ...

and more »


When should I sell my mutual funds?
Keep in mind that your mutual funds might include more than just US stocks, says Bloom, head of Open World Financial Life Planning. "Your portfolio will include funds that include different parts of the market," he says. "Sure there's the S&P, but ...

Google News

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

Your Job

There are so many kinds of work that needs to... Read More

The 10 Commandments

Wall Street has been preaching for years and years to... Read More

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

Understanding a Stocks PEG Ratio

A PEG ratio cannot be used alone but is a... Read More

Stock Market Investments

If there is one term over-used when talking about making... Read More

Market Globalization

Just 30 years ago the stock market was a shadow... Read More

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash... Read More

Understanding the Bulls and the Bears

If you've ever flipped on the television to CNN Financial... Read More

Evaluation I

An insane person cannot evaluate an insane evaluation system.As you... Read More

Stocks & Oil, Sat Jun 18th, 2005

Both the stock market and oil prices rallied recently, which... Read More

Shadow Bull

As one of my regular readers you know I have... Read More

Is Active Trading The Answer?

One of the main reasons many of us get into... Read More

Attitude Is [Almost] Everything

I often play a little game with myself when I... Read More

Who Knows?

The Shadow knows. Remember him? It seems a shadow has... Read More

The Stock Market Doesnt Care if You are a Beginner?. Get Prepared to Succeed at Trading

Stock trading remains a very competitive field and the stock... Read More

8 Penny Stocks to Avoid

There are many good penny stock investments available, which could... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

How to Pick Winning Stocks

There is nothing more exciting than finding an undervalued stock... Read More

Successful Trading ? Establish Your Risk Level

Before you embark upon a journey of trading stocks or... Read More

Investing in the Stock Market - When To!

Is really not as important as to how you invest... Read More

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

Dont Fight The Fed

One of the great truisms of Wall Street is "Don't... Read More