|
Author: Robin Banks Article source: http://www.settinglifegoals.com/. Used with author's permission.
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.
Stock Investment Advice
Know Your Muscle Building Exercises - The Shoulders
We all have our favorite exercises for each body part but sometimes it is useful to look at our training program from a different perspective. This article outl...
The Cheapest Christmas Ever!
A Christmas with no bills!
Nutritional Supplement
So what is a nutritional supplement? Nutritional supplement is a product that provides additional sources of nutrients when people don't get enough of them thro...
Stress Management Shouldnt Create More Stress. 10 Ways To Reduce Unreasonable Stress and Boost Perf
Stress has reached such levels that it's affecting people's mental and physical health. As a result they are not performing as well as they could and their orga...
Hype! Has The Internet Gone Too Far?
The hijacking of the information highway in a hrricane of etrch-quick schemes is regretfully reviewed.
NLP: Your Path to Personal Success
A brief introduction to NLP. NLP is about discovering who you are and how you can achieve your desires in life. NLP is more than just techniques. It is a curios...
Hit Them With Benefits
More about advertising from BIG Mike McDaniel
Do You Need a Boat Loan?
Applying for a boat loan is pretty much the same procedure as for vehicle financing in general. The easiest way to do it is online. Be aware of the fees and es...
Tuscan Kitchen Decorating Ideas
More and more people today find the thought of a sunny cottage kitchen in the Tuscan countryside as their ideal. If you long to have that cozy-cottage feel in ...
Deliverance
For he spoke, and it came to be; he commanded, and it stood firm. The Lord foils the plans of the nations, he thwarts the purposes of the peoples. But the plans...
How to Protect Yourself Against the Hidden Cost of Shipping to Trade Shows
Protect your business from being overcharged for trade show deliveries.
10 Reasons to Camp in New Jersey
There are literally hundreds of reasons to go camping in New Jersey, but there is one large, and I mean really large, reason:
What Goes On Inside? (Your digestive System)
Your well-being depends on what you eat, when you eat, how you eat, fluid intake and how well your food is absorbed. We absorb everything we need to sustain lif...
Job Interviews: Succeeding with Panel Interviews
Some job candidates feel intimidated when facing a group of interviewers instead of just one person. Here's why candidates should relish -- rather than dread --...
A Healthy Summertime Snack For Your Kids
Oh, for the lazy days of Summer.... As If! Nowadays we all rush around trying to balance two jobs, the kids and running the house. Many of us are taking classes...
Let the Professionals Help You Out - Outsource
As your website grows in terms of attracting more footfalls, generating more business, and providing more content; it will demand more time and attention from y...
Sell Your California Home For Top Dollar
Learn why some homes sell quickly and for over asking price. Discover how you can position yourself to sell for the highest possible price...
Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage
If you are considering an adjustable rate mortgage, here are some pros and cons to consider when making your decision on the best loan type for you.
About Google PageRank
There are many theories on the mysterious workings behind Google's PageRank system, but is all the effort really worth it in the end? What is the importance of ...
Get More Web Site Traffic From Search Engines
Considering all of the money you spend on promotion and advertising, wouldn't it be great to build a steady stream of web site traffic from the free search engi...
Launching your Business with a Chamber of Commerce
Chambers are more than just a networking group. Read this article to find out how you can use your local Chamber of Commerce to launch your business or product.
Accurate Psychic Advice
Psychic readings can be an invaluable tool for obtaining answers to your most confusing questions. A psychic reading can help you gain insight regarding your lo...
Developing an EBook as a Marketing Tool. Simple & Easy!
The truth about the internet is that it is a wealth of information that people use to find out about any subject under the sun. Lets face it, if you need to fin...
Website Marketing: 10 Proven Uncommon Tactics Ways To Accelerate Your Profits
Would you like to accelerate profits at your website?
|
Print this page