Boiler Room 7/17/00

On Friday or Saturday evening my wife gets a movie from Block Buster and after dinner we sit, hold hands and watch. This week she brought back one that I think every investor or anyone contemplating investing in the market should see. It is called "Boiler Room".

How many times have you been called out of the blue by some no-name broker who wants to make you rich provided you buy shares in this great new issue or some stock that is just about to "take off".

Usually they start off with do I remember he called me 6 months ago and recommended so-and-so issue that is currently in the news because it has gone up 100 or 200%. He did not make that call and if he had I am sure I would not remember it. Also the name of his firm is one I never heard of, but it sounds very legitimate and he might even say they are affiliated with Chase Manhattan Bank or some other big bank. They might have their checking account with that institution, but otherwise they have no connection with them. Now he has another recommendation that is going to do even better that that one. Yes, and pigs can fly!

If you haven't done so yet don't let him go any further. Hang up. Oh, I know you can't because your mother taught you it is rude to hang up on people. Please, this time DON'T listen to your mother. He will try to get you into a conversation by asking simple questions that must be answered with a "Yes". Stop listening. If you can't bring yourself to hang up then put the phone down and walk away. In 10 minutes he will be gone to call another sucker.

There really are boiler rooms out there selling worthless securities and everything they do is 100% within the law and 100% immoral. How do I know this? I used to own a brokerage firm and I received monthly reports from the regulatory agencies outlining charges against these shady dealers. Fortunately, I did not have those problems as I would not allow hype to open accounts.

The things being told on the phone are usually too good to be true and that is a fact. Do yourself a favor and rent that movie. Not all brokerage firms are like this, but remember my basic rule.

NEVER SEND MONEY TO A VOICE ON THE PHONE.

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 2005

---

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Emotional Maturity

If you are going to be a winner in the... Read More

An Old Proverb for Investing

"If you don't know where you are going, any road... Read More

Exchange Traded Funds Primer

Exchange Traded Funds (ETFs) are a group of passive index... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

Stocks & Oil, Sat Jun 18th, 2005

Both the stock market and oil prices rallied recently, which... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

How to Find Value in No Load Mutual Fund Investing

What are you thinking when it comes to your no... Read More

Cash Is A Position

I go to the Money Show every year to visit... Read More

This Market Is Different

All of the talking heads have been telling us that... Read More

Boiler Room 7/17/00

On Friday or Saturday evening my wife gets a movie... Read More

Valuation

Every day I hear from the "experts" on CNBC-TV and... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

How Much Information Do You Need?

You have decided to buy some stock or mutual funds,... Read More

Eternal Sunshine

There is a current movie entitled "Eternal Sunshine of the... Read More

Stops Make Money

During the day I watch CNBC-TV, the stock market channel.... Read More

Investing Basics - Stocks, Mutual Funds, Real Estate & Online Investing

Have you ever thought of investing? Do you have a... Read More

401K-itis

Are you one of those many people who dread reading... Read More

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

Duck

Duck! No I don't mean a quack, quack. I meant... Read More

Kick The Tires

Before you buy another car you walk around the lot,... Read More

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More

The Big Bad Bear

The big bad bear is stirring again. So far he... Read More

Leverage - Margin Debt

What is leverage?Here is a definition of leverage from an... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

Momentum

One of the basic laws of physics states that a... Read More

One Way Street

Ever turn down a street, get half way and suddenly... Read More

Basics of Stock Market

Financial markets provide their participants with the most favorable conditions... Read More

Trapeze Artist - Swinging with the Stock Market

When we go to the circus we see a trapeze... Read More

3 Components Needed for Beating the Market

Time to look back2004 is over, now we are in... Read More

Mr. Market

I constantly hear the talking heads on CNBC-TV, the radio... Read More

Precision Money Management

This article describes the model of a natural relationship between... Read More

Economists #2

Economists know more about how the fragments of society work... Read More