You are looking for a meaningful and professional working relationship with the person who is to be your investment advisor. This person is also going to double up as your stockbroker who will be advising you on the stocks and shares that you need to buy to put your money to good use. The question is this: how do you ensure that you have a good working relationship with your stockbroking agent. Though this might sound quite easy, in reality, it is not so. It is always difficult to draw the line between a personal relationship and a professional one especially when you are dealing with something as volatile as the stock market (Gary Fullett). You not only have to check the person’s licence, but you also need to know about his experience and credibility in the market. This is quite a tall order considering the fact that there are umpteen numbers of stockbrokers milling around, waiting for a chance to make it big.
All Eggs In One Basket
Sometimes it is an old adage that actually helps us understand how to deal with practical issues. You might have heard of the old proverb that tells you never to put all your eggs in one basket! This is precisely the point that one needs to remember while trying to make investments. In this case, when a trader is trying to advise you on what to do with your money it would be wise not to invest only in one specific area or company. If there is a broker who’s trying to get you to do that you can be sure that he has not had the experience of dealing with other people’s money. He might not be quite sure about the market as well. Make sure to find out how you can invest in multiple securities so that your money is safe.
Buying Capacity
When you are flush with dollars it becomes easy to decide on which of the stocks you are going to invest in. On the other hand, when you are not very sure about the amount of money that you can actually spend on investments, it becomes quite difficult to make a decision. Try to be as transparent as possible with your advisor who will be able to give you options only when he or she has a good and clear idea of what resources are available. You might need some time to decide; do your spadework first and then venture into the world of stocks and shares.
