If you think about it the only time he calls is to return my call unless he has something “special”.

What is “special”? Was it a limited allocation of shares on a new IPO? Limited Public Offering. Maybe one of those oil partnerships? Hope it wasn’t for one of those CMOs – collateralized mortgage obligations. We better not talk about that.

The market goes up and the market goes down. Has he EVER called to say the market is headed lower and it would be a good idea to be in cash to protect your money? I will bet money on that call.

Do you know the background experience of your guy? How many years has he been doing this? What did he do before?

In order to become a licensed broker all he has to do is pass an SEC test. I was a principal at one time for an offering by my own company and they made me take the test. It wasn’t that hard.

Anyway now he is a “professional”. And he can work for a brokerage company. The new broker must then bring in new clients if he is to survive. The only way to survive is to bring in large sums of money to generate commission. If he doesn’t he can’t keep his phone and desk. Some brokers are required to pay their own phone bills.

The new broker gets two manuals when he arrives. That big fat one is a copy of the SEC regulations. Violate these and you are out the door.

The second manual is the important one according to the local manager. It is the Sales Manual. This is how the new guy spends his time. He must bring in new clients all the time. The old timers have hundreds of accounts. According to industry statistics a broker has an average of 300 accounts.

How can anyone service 300 accounts? Have you heard? “My broker is watching my account for me.” Yes, and pigs can fly.

Where is the third manual? What 3rd manual? The one that teaches him to trade and to make and protect customers money. Sorry, there isn’t any. In fact most brokerage houses do not want their brokers to do any analysis or to learn how to trade.

Brokers are told that market timing doesn’t work. That is a flat out lie, but it is what Wall Street tells them. No technical analysis is allowed. They are told what to recommend to their clients. And they do it. Complete brain washing.

When the market is going up his brokerage will have all kinds of equities to call you about. His company tells him what to push.

When your account is being pummeled during bear markets the broker never calls.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2009 Williamsburg Investment Co. All rights reserved.