Your Broker's Advice

When broker called you giving advice, he is happily calling his God of Fortune. This is probably how broker's advice works.

Slowly generating a pool of faithful Believers. How?

Everyday, some counters will be down and some counters will be up. This is how Market works.

He probably segments his targets into two groups. One group giving BUY advice on some counters and the other group advising SHORT on some counters. The trick is to give different advice to different people.

The Market does what it does. The results at the end of the day will be

Right calls: BUY call, Counter UP; SHORT call, Counter DOWN

Wow, a pool of BELIEVERS was born.

Wrong calls: BUY call, Counter DOWN; SHORT call, Counter UP

Wow, a pool of GIVE HIM A SECOND CHANCE MAN was born.

Every trading day, he just goes about giving different advice to different people.

Soon he will have a pool of strong BELIEVER, a pool of strong GIVE HIM A SECOND CHANCE and a group of HATE YOUR BROKER will leave.

To survive in this Game, he will enlist the BELIEVER and the SECOND CHANCE to help him to recruit new members to carry on the Game of Broker's advice.

Your brokers LOVE to give you ADVICE. Why? You are his GOD OF FORTUNE. You are his RELIGION and do help him to bring more followers. You more you take his advice, the more brokerage commissions he made. This is just that simple.

Listen to Warren Buffet's advice: Don't take your broker's advice.