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Confessions of a former stock broker

Beginning in the spring of 1995, I spent the eighteen most miserable months of my life as a stockbroker for a small firm in Denver Colorado. I worked about 70 hours each week for people I neither trusted nor liked, and did business the way it was typically done at the time, by cold calling people and convincing them to send me money. Against all odds and common sense, they sometimes did just that.

I worked for the sort of company typically called a chophouse or boiler-room brokerage. The company was frequently dissolved and reformed under a new name. Perhaps it goes without saying that I did things I should not have done. Some things I hesitate to speak of even now… but no, that's not fair. Since you were interested enough to read this far, you deserve to hear it all. If the things I did make you angry, it may please you to hear that they nearly destroyed me.

By the way, the world is full of good, decent financial advisors, but as far as I'm concerned, no one who makes his money by charging you big commissions on your transactions is deserving of your time or trust. There is simply no way to justify the transaction/commission stockbroker model. It is in no one's best interest except for the predators who abuse it. Don't get me wrong, many people set out to do this job ethically, and perhaps a few believe they are succeeding. But I don't believe it, and neither should you.

So, let's delve into some of the stockbroker's nastier habits…

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This article was originally published on MarketIntelligeneCenter.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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