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Thursday, September 23, 2010

The poem of (poor) retail investor

WHERE the broker is without fear and the client is always told to BUY
Where neither trading nor recommendations are free,
Where the world is broken into cash and F&O
By narrow sales calls
Where reports are printed in a herd fashion
Where tired analysts are stretched beyond perfection
Where no clear reason ever finds its way
Into the hype and hoopla of teji-mandi ka daily habit
Where the poor investor is led astray
Into ever-conflicting thought and action
Into that heaven of chaos, we welcome you, dear investor.



The markets are soaring and sooner or later the retail participation will see a swift rise. Small retail investors will come with their hard earned money and dollar dreams to most of these brokers. The above poem is not only a lament on the tide of affairs where most of these investors are fed momentum stocks and F&O which are deadly in the long run.

The poem just highlights the background of how and what your broker (usually)recommends so that the small investor makes a better call.

However,though the above is fairly common, I know a few brokers who are different and very sincere & ethical in recommending clients.