Don’t blame your stock brokers
I was in Johor over the weekend and my relatives talked about their experiences with the stock brokers. Few of them have this same stock broker who always told them not to buy this and that. To them, this stock broker is a coward who does not dare to take risks. 1 of them wanted to get into KNM but the stock broker told them not to, and they ended up making 20-30 sen less per share. That’s quite a big “loss”, to them.
And then I interrupted.
I said that it is true that this stock broker is a very careful person. But a stock broker is, after all, just a stock broker. He earns if you buy/sell and by telling you not to buy, he ends up not earning anything. But if you insist, you can still buy! Nobody is stopping you from that. The stock broker’s role here is just to give you his opinions and advice since stock brokers tend to get news faster than us.
To be honest, I rather not lose 1000 than not earn 1000. So having a cautious stock broker is always better than having a stock broker who always gives me wrong information.
Also remember that at the end of the day, stock brokers rely on news most of the time. You still need to do your own research before making a buy/sell decision. If you don’t do that, then don’t start blaming people (stock brokers) if things don’t go your way.
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Comments
@ Damien
Yes, a lot of people treat it as casino. Even some of my friends who are long-term stock investors, think so. And a lot of them rely on market talk rather than putting efforts into the research n studies.
For me, i’m not good when it comes to technical research (candle sticks..etc etc). I’ll definitely take a look when i got more time n energy (traveling to Cyberjaya to work is pretty tiring). But for now, i rely on something called qualitative measurement.
A lot of people think that is bullshit, but so far, it has been working well for me. I no longer trust market talk because i’ve had some bad experiences n everytime ppl talk bout this BIG NEWS…99% of the time, it is already too late for us stock investors to go in.
I do agree we shouldn’t blame anyone else except to yourself. Think of it, maybe stock broker shouldn’t give advice at all?
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@ ChampDog
I’m not too sure about stock broker but for a financial planner (those that advise people how to invest) should always tell people to go for a diversified portfolio.
I think while most people here “outsource” their market intelligence needs to their brokers, they’re still flying on gut feel which is shaped by what their friends tell them. Most uncles and aunties treat this as a casino anyway. Monkey see monkey do. They’re not interested in fundamentas but will take you to task for not telling you about fundamentals IF their stocks go down.
For me, I try to go on a 70% fundamentals research, 30% market talk. Many uncles and aunties I know go on 100% market talk.