Shares/Stock How To Avoid Being Misguided By A Stock Broker?

[Good-Guy]

Stock trading could be categorized as one of the really intriguing and a great way to make good income, but the big problem with stock trading is that you must have great knowledge before you could actually start trading in stocks. The biggest issue here is that there are many people who do not even have basic knowledge about share trading and they end up depending a lot on stock brokers. I am NOT Saying that stock brokers are bad people. In fact, there are many good stock brokers out there who would guide you in a proper way. After all, if they guide you in the best way, then you would avail their services after you make profits, don't you?

However, there are a few stock brokers who only care about themselves and their only focus is to earn commissions regardless of whether or not their clients earn profits. Usually such kind of stock brokers manipulate their clients into investing in some stocks and the clients end up losing capital. Unfortunately, when the client does not have any basic know how about stock market, then getting manipulated is something inevitable. I think that stock clients should have at least a good level of knowledge. So, how can you avoid being misguided by a broker?

 

[Alexandoy]

I have shares of stocks of the biggest bank here and I have the phone number of the broker which was assigned to me by the bank. To be honest, I have not made a transaction yet because I am still in the learning stage. However, I feel that if the stock price will go down to 120 then I would buy some more. If the price would go up to a high level it wouldn't matter because I will not sell. Those shares of stocks are my lifetime savings and I will only sell if I need the money badly. I am hoping that the broker is a good person although I am confident that the bank will not hire a broker who is not on the level with his transactions. Maybe I can post more about the stocks when I am able to buy more shares.

 

[Caramelle]

It's always a big advantage to know more about stock markets before deciding to invest in stocks. In general, it's the investor that makes decisions on the stocks to invest in and the stockbrokers just execute the transactions based on the investors' orders. If you are a small-time investor, you will likely not even hire a full-service broker because you'll usually scrimp on the brokerage fees which can eat into your small profits. Thus, you are more likely to hire discount brokers who don't give advice and are only paid for the brokerage services. In fact, many discount brokers are online and use an app to facilitate their clients' investments. This means that you have to be knowledgeable about stocks and the business environment to be able to make sound judgments.

In case you actually have a large stock investment and are opting for a full-service brokerage with an investment counseling service, you can avoid being misguided by stockbrokers if you know some basic facts about stock investing, the stock market, and the business climate. In addition, you can always choose to work with reputable stockbrokers.

If you don't know too much about stocks and you have a low appetite for risk, it would be better to invest in blue-chip stocks as these are reliable and stable stocks owned by companies that are operating profitably and can be expected to pay dividends regularly.​

 

[Good-Guy]

I have shares of stocks of the biggest bank here and I have the phone number of the broker which was assigned to me by the bank. To be honest, I have not made a transaction yet because I am still in the learning stage. However, I feel that if the stock price will go down to 120 then I would buy some more. If the price would go up to a high level it wouldn't matter because I will not sell. Those shares of stocks are my lifetime savings and I will only sell if I need the money badly. I am hoping that the broker is a good person although I am confident that the bank will not hire a broker who is not on the level with his transactions. Maybe I can post more about the stocks when I am able to buy more shares.

Sir, I appreciate your efforts and I hope that you make profits on trading, but I can feel that you are relying a lot of stock brokers. I know that you might not have enough knowledge about how you should deal in stocks, but I do not think that it would be a great idea to rely so much on stock brokers. It is always a good thing to have some good knowledge about trading. This is why you must first learn the basic things before using the capital. Even after learning much about trading strategies, it is never advised to use full capital in hand for trading purpose.

You must invest a small amount of money first and this is why I call "Experimenting". I would personally never ever invest my whole sum of money even if I become the best trader on this Earth. As far as brokers are concerned, I would never view them as a tool on which I could rely entirely rather I would just view them as "assistance" who can provide you with some additional advise and trade on your behalf. The main person is you who has the power to make investment decisions.