The real truth behind the professionals who manage your money
A subject which is rarely talked about…
If you put a man in a well-tailored suit and sit him in one of the city’s top banks there is an immediate impression that this person has lots of experience in financial markets and also makes buckets of money for his clients.
The reality is many of these ”so-called professionals” do not really understand how the stock market ”really” works. They think and act like the majority. I spent many years working in the financial industry before becoming a full-time independent trader and the big reason why I left the banking world was because I did not agree with the way banks make money for their clients in the stock market. You see many money managers/brokers have an enormous amount of pressure to keep clients. If they lose clients then they get no fees and no fees equal no bonus. Clients are more likely to leave if they miss out on a move to the upside in the market than if they suffer a drawdown.
The problem is the people whose money they manage on the whole have no knowledge of the stock market and get neurotic if the market goes up without their money manager participating in the move and on the flip side are not so upset if the money manager actually loses money when the market drops. Their no.1 fear is missing out if the market goes up without them, causing their friends to get rich while they are left behind. Here is the reality – if your advisor thought the market was topping out and called his clients and convinced them to sell their positions they would most likely get extremely angry with him if the market then went higher. They would probably move their money elsewhere. But if the market drops a typical client may get upset, but he wouldn’t blame his advisor for that since everyone else is losing money too. The client will blame the market and the broker will tell his client to “stick with it” and most people will do just that. When you delve deeper the reality is most people would rather lose money by holding than face the possibility of making a decision to sell and being wrong especially when everyone on TV is telling them to keep on holding.
The brokers and city firms make money by being in control of your money. (Tweet this)
Clients pressure them to behave in a way that results in them analyzing the market and making trading decisions like the majority. To be successful in the market you need to act differently to the majority and the so-called professionals are not really rewarded for learning about the stock market and what it takes to be a winner, but instead rewarded for the client relationship. Subconsciously over time the money managers/brokers become a mirror of their clients. It’s another big reason why the majority of funds out there do not beat the market. The ones who do develop an in-depth knowledge of the market get the results! So the next time you start feeling the ”city boys” have the edge remember the 5% rule applies to them as well.
In the present day, it really does pay to learn how to manage and create your own wealth. Our services will teach you over time how to trade successfully however if you want to fast track to making consistent money then joining the WHALE PROGRAMME / PRO TRADER is the only way. These days I choose who I want to work with so if you want to take advantage of working alongside a successful professional trader then send me an email. I would point out though I have no interest in working with lazy people. My clients who are making consistent money and now trading professionally have put in the hard work. There is no magic button in the stock market which is why the majority fail however if you really master how the market operates (it only requires a bit more effort to put you well ahead of the game) then there is unlimited amounts of wealth to be made for the top 5%.