My Broker Personally Trades

Category: Finance.

I have taught thousands of students all over the USA how to trade with safety nets and insurance. In addition to profiting in any market, and playing it safe it is also important to work with a broker that will benefit you.

I am just as excited about profiting from falling stocks as I was during the BULL MARKET. Your broker is an important key to your trading success. Yet when I ask them how long they spent looking for one, the answer is usually unreasonably low. I am often amazed at how many students are not happy with their full service broker. The truth of the matter is they have taken little time at all to interview and check out different brokers. First, there is a large misconception about brokers and brokerage firms.

I would like to take this newsletter to discuss how to select a great stockbroker and related items. I have written an entire book about this called THE TRUTH ABOUT BROKERAGE FIRMS, which is available for$ 395 by calling 1- 800- 346- 903It may save you thousands of dollars to read this and apply the information given, and you will have it within minutes by e- book. They just get a broker by referral and never ask questions. The truth of the matter is, most people don t even try to call a few brokers. I remember spending hours calling brokers and asking them various questions before I finally selected one, which to this day I am still using over 5 years later. He knows how to pull up the option chains and get what I need My broker sets real time alarms on both the stock and the options for me, and calls me when the alarms go off so I can initiate my trading plan He shows up before the market is open, so I can call him to go over my potential trades before the market. First, you want to make a list of what it is that you want in a broker, so I will give you a list of what I love about my broker to give you some direction: My broker understands options, and is able to place the orders quickly.

This speeds up the trade when I am ready to place one. My broker does not leave during lunch. My broker answers his telephone when I call, or it goes to his assistant who personally trades options, knows me and my account number, and can meet my needs or page my broker out of a meeting to help me. Actually, he is on Seattle time so he can eat after the market closes. I get discounted commissions for full service, which are about 50% off. If he does leave, he lets me know a day or so ahead. When my broker goes on vacation he gives me weeks notice, and make sure I am set up to go with a reliable broker that will understand my needs while he is out.

He has his own computer to watch the market and charts, and I can call him from anywhere and have him pull up a chart and tell me what is happening, he can read charts. 1My broker is able to drop my orders, versus it going to another person who enters it and a long process to get to the floor. My broker personally trades. My current broker sends it direct to the floor from his computer, for fast fills. 1My broker tries to get me better fills than I ask for. 1My broker has access to a Bloomberg terminal and can do research and fax and e- mail information to me. 1My broker has a toll free line, if I want to use it, although often I don t. Building a relationship pays off. 1My broker does not make decisions for me on my trades. I like to call in direct to his line so he is on the other end of the phone. 1I got to know my broker, send him Christmas and baby gifts, etc. and take him out to dinner with his wife if I am in town. He let s me.

Once my broker talked me into exiting a trade when I was up over$ 18, 000 and as soon as I sold the stock fell heavily. However, I am not offended by him giving me input and I will take that into consideration in my pre- set plan. In order to find such a broker, it could take you one hour a day for two weeks calling different firms to interview brokers. Most students never even spent an hour trying, it s as if they thought one would possibly show up sub- consciously. But if you found one like this, it would be worth the time. If you are unhappy with your current broker I would get a list of brokers, start calling and asking to speak to someone who specializes in options and then start talking to them. Call a few minutes after the market closes, since most brokers don t stay around too long after the market closes.

Don t call during market hours, that would be unfair. You could call during the market to set up an appointment to talk after the market. So you don t have to admit you have a small amount to trade with, if you only have a small amount. I would tell the broker that I just want to put a few thousand dollars in, until I can build a relationship with this firm. Be up front, I am interviewing brokers this week, to open an account. Do you personally trade?

Ask questions: Can you tell me about your experience with options? Do you trade options? What strategy do you play? If so, how many trades in a month? What is your track record for your clients? How does an order get to the floor from you? How long have you been a broker?

When do you get in, and when do, leave for lunch you go home? You should be able to tell right away if a broker does not trade. How easy is it for me to reach you to place a trade? 1Who handles your accounts when you are gone, and how good are they? 1What is the minimum to open an account to trade calls and puts? 1Tell me why I should open an account with you? If you are not sure, ask them to explain to you what writing a covered call is or their favorite strategy. In that case quit asking questions, thank them for their time and get off the phone. Usually you can tell right away if you have a personality conflict and would not like to use a broker. Cross them off your list.

Keep in mind that you do not need to have a broker in your home town, or even your state for that matter. It really helps to actually like your broker. I have more than one broker, and none of them are in my state. Bottom line, your broker is your key to successful trading, even the best of strategies can be ruined by inefficient brokers. Don t limit yourself. Take the time to choose a broker wisely, and it will pay off for you. It is very important for you to understand the politics behind brokerage firms to get the most out of your broker, but it is beyond the scope of this newsletter so I recommend you get the book and read it immediately.

In my book, THE TRUTH ABOUT BROKERAGE FIRMS, I discuss things to look for in your account application to avoid giving up control of your stocks. You can order it and have it by e- book today to aid in fine tuning your search and fixing your account application to benefit you. Darlene Nelson with Better Trades Now that you have information on how to begin by finding a good broker, it is time to step up your trading confidence and learn how to be efficient trading with safety net alarms and using insurance to protect even a bad trade from wiping out your funds.

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