Monday, July 7, 2014, AM | 1 Comment
Everyone is keen on making their money grow manifold and often most of you may be in a hurry to do so. This can result in three things:
- You are extremely lucky and reap great benefits from your investment.
- You have made some not-so-wise decisions in a hurry and incurred loss on your investment.
- You are a quick thinker and made some great decisions even under pressure and still incurred loss.
What happens to your money depends on the performance of your stocks in the market. While you have no control over that, you may still be able to control the way you work up your stock or your decision of investing in one.
These are few of the financial issues you may face with a stock investment and if your time is right, you may be able to avoid them:
Not finding the right broker:
A background check always helps. Find out if the broker firm is licensed both in your state and also to sell securities.
Check for any securities violations or if they have faced any kind of disciplinary action or if there have been any complaint filed by other investors.
You can easily do it from your computer at home or at work or simply contact the securities division. You may request for a written report for the same.
Not finding a proper investment strategy:
It is wise to not let go total control of your investment to your broker.
Make sure your broker is in the same line with the amount of risk you are willing or are prepared to take with your investment.
Stocks are a matter of risk but if you think the risk will hamper your retirement plans or your career you may want to reconsider.
Not keeping proper records:
This is a very common mistake. A lot of investors forget to keep records for themselves and totally give away control to the brokers.
Your account form should mirror your financial profile in a proper manner. If you change your strategy make sure your form gets updated and reflects your amended goal.
Keep account statements as well as your investment records in place. Check if you have authorized all the activities that have been logged in your investment record.
If you have doubts, it is advisable that you contact your stock broker.
Not recognizing fraud:
Fraud may be hard to identify easily but luckily investment professionals mostly have had no complaints so far.
However, make sure that your broker understands the risk you are willing to take. If your goals do not match, you may not want to move forward with the investment plan he or she proposes.
Also make sure that you have given permission before your broker trades in your account.
Another idea of fraud could be if your broker does not tell you the truth about your account or omits any financial fact before discussing with you.
Problems are exactly that – problems, and they all have solutions. In case you realize you may be facing problems with your broker it is always good to come clean with them and tell them your concerns.
Make sure that you let them know about your concerns in writing and safely keep records of all the written communications you make.
If required contact the branch manager where the broker works and if that does not work either, you may seek help from the Department of Banking. You could use their online complaint form or write a mail to them.
This article has been written by Sam. He’s a financial expert and specializes in areas like credit card, personal loans, personal debt, etc. He writes to help people come out from financial problems easily enough.