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Re; your losses when dealing with brokers who advertise on TV or on radio
This commentary relates to 100% of the firms running national advertising on
radio or TV, and a few, a very few, of the firms cold calling. You lose
because the brokerage firms are actual criminal syndicates that operate in
partnership with many clearing firms. All function with the approval of the
NFA and the negligence of the CFTC. To sum it up: you are an honest
investor trying to make money by unknowingly trusting a group of real live
criminals to guide you.
Here is how these criminal syndicates are structured. The firms running
media ads hire as brokers almost exclusively young new blood. Their code
word in hiring is, "we don't want to hire bad habits". Sounds good, but
what it really means is that they don't want to hire people who are smart
enough to know that ONLY PURPOSE OF THE FIRMS are to swindle every client
for every dime possible. They all use the same swindling (selling) system,
or modification of the system, to rob you. Older brokers in these firms
have "signed on" for criminal activity and know the score.
The mooch (you) calls in response to a TV infomercial or radio ad. Your
call TO them acts to protect them from legal action since YOU called THEM.
They are able to use this act as one of many "ten foot poles" to keep you
from suing when you call and try to get money back. Your call also prevents
you from complaining to real law enforcement (as opposed to "fake" law
enforcement of the NFA/CFTC variety) regarding telephone soliciting since it
was you who initiated the call. When you call in response to their ads you
come in contact with one of these young know nothing guys (a few women) or
established criminals who will send you materials after qualifying you for
money and interest. Your call is followed up by a phone call from them TO
you, only after you get the stuff. The fact that you possess all the U.S.
Government approved materials before they call you back is again a device to
keep you from suing over the bad trades because you were in full possession
of the "facts" and risks before sending in money; another "ten foot pole" to
keep you from complaining or to use in court if you wise up.
Now let's cover your call to them after seeing or hearing their ad. You
will talk to someone who has passed an FBI check, passed a government
examination, and may have even graduated from grammar school. Some have
Ph.D.'s. All have passed NFA Ethics tests and have little certificates to
prove it. They will tell you this. Anyone you talk with has learned a
script. He or she has all your possible objections written down and
memorized and has been furnished prepared company rebuttals to your
objections. All materials have been committed to memory. In many places a
manager or two roam the sales floor to be sure the salespeople "stick to the
script" and to act as a helper to handle a potential client who may be
putting up a good fight. Believe me, you won't say anything to these people
they haven't heard before and they will have a scripted rebuttal to whatever
you say. Your only defense is poverty.
Now let's suppose you have their sales materials and they look good.
Everything always looks good because these thugs have spent a great deal of
money preparing the package. The package will consist of real Exchange
booklets and NFA/CFTC approved literature. Generally you will be "sold" on
an up market because the stupid public (you) won't buy puts or go short
because you don't understand markets going down. So let's say you are
convinced that heating oil will go up because of winter and you send them
$5,000 you can afford to lose.
What is going on so far? First you will be sold options and not futures.
This is because the dopes in the brokerage firm don't have to watch a screen
every second if you do options. In fact it is almost always true that the
"brokers" in these companies do not have screens on their desks. This is
done so nobody smart will work there. A real broker would never work in a
place that prevents him from watching a market for a client. If an asshole
(you) calls to get a quote on his positions the broker has to walk to a
screen somewhere in the office and waste valuable selling time getting
quotes for you. It is for this reason "brokers" in this kind of environment
are trained to aggressively sell you something new any time you call for a
quote so that you won't call again. Keep in mind that futures are labor
intensive on the broker end, while options are "no brainer crap that will
probably lose anyway so why bother watching" types of market plays. At
least they are the way these firms operate. They want "brokers" spending
100% of their time on the phone "selling" new stuff.
Many of these firms will claim their commissions are pretty low, and this is
sometimes true. However, the way you will be handled will negate any kind
of commissions rate. The first thing they may do is options "spreads",
which double the commission and in some cases more than double the
commission while almost assuring you of loss. The next thing they might do
is sell you deep out of the money options, options that are cheaper so they
can sell you more of them and get more total commissions. Your only guide
to fees and commissions in this type of scam is total commissions per dollar
put up. It almost a given that commissons per $5,000 will be 20% to 40% or
more. When you are finally "busted out" you may find that you have paid 75%
or more in total commissons.
Now the fun part. Let's say your money is in the firm. If you are the
typical mooch with maybe a max of $10k to lose they will probably start with
spreads or deep out of the money options. BUT if it is determined that you
are a potential "mother lode", an asshole with tons of money to piss away,
you will be put into the right trades, options that are close to the money
so that you have a "best" chance of winning. A "mother lode" who starts to
win, even $100, is dead meat to this crowd. Once any account is in the
market the firm will impose the "72 hour rule" or similar rule upon the
broker who "opened" the account; this means he has 72 hours to get fresh
money or he has to turn the account over to an "Extractor", a guy with lots
of experience in the "business" who's specialty is to "extract" money from
"assholes". From this point on, the "opening" broker gets only half the
commission generated.
I interject here that the account papers you signed ask for net worth,
assets, etc., and act as a road map of your financial empire as well as a
psychological profile that focuses on your willingness to put up with being
robbed. You have to fill them out. The regulators require it. You tell
people whose sole purpose in life is cheating you if you ever filed a
complaint against any brokerage firm (criminals just like them), if you ever
invested before in ANYTHING (they love people who "invested" in wireless
cable, oil wells, etc.), how much you make and how much you have. The U.S.
Government has forced you to nail a blueprint of your house on your front
door along with the key so the burglars won't have to work too hard when
they get inside.
Now let's go to the "Extractor".
The Extractor is the pro of pros, a scumbag among scumbags, a criminal con
man, and he has thirty or forty pitches he can use to get your money. It
makes no difference if you are winning or losing, he has the pitches. Most
Extractors use legal pitches, but of course there are some who mislead you
like a CIA map of downtown Belgrade. He will get more money from you if you
have it because he is a crook and you think you are an investor dealing with
a government regulated "honest business". You are defenseless til you are
broke or until your legal loss limit has been reached. I say "Legal Limit"
because the NFA/CFTC "regulators" limit firms to how much they can steal
from you (20% of your net worth). Nice, huh? At any rate, from this point
on it makes no difference if you are in spreads, deep out of the money
options, or actual synthetics; you are going to lose more and more while
generating constant "cheap" commissions. A good Extractor will get you to
raise the amount you have claimed as net worth so he can get you for even
more money.
But there is another actor in this game, he (always he) is "the trader". It
is this guy's job to keep the NFA assholes and CFTC dumbagoes (as well as
your attorney) off the trail while churning the account to a degree not
imagined by any of you. The "trader" actually has market knowledge. He
will have plenty of justification for trades. What is best, he will trade
all accounts the same. This means that if he churns account "A" he will
also churn all other accounts in the same trade at the same time so the
books will look good. Also, the accounts commissions are now "split" three
ways in the more honest firms, in the worst firms the opening broker is now
frozen out as punishment for failing to "load" or get fresh money within the
72 hour period.
Now let's stop. The account isn't traded without client approval. So, the
new trade is tossed back to the "broker" or "extractor" to get client
approval. Client approval is tape recorded, as is all conversation after
your paperwork is in the firm. This tape is a "twenty foot pole" in case
you decide to beef later. These tape recordings won't hold up in court
because not ALL conversations with you have been taped, but you don't know
this. The tapes, plus the NFA approved literature you had before you sent
in money, plus the fact that you responded to NFA and CFTC approved
advertising leaves you in a very expensive legal position, one that you will
usually not win because of the mountain of "disclosure" the firm supposedly
gave you. It also means your attorney will have to spend too much to
collect. Arbitration? You think either the NFA or CFTC will ever admit
that they approved ads or materials that are designed for the sole purpose
of misleading? (See below for so- called actions by regulators)
And the broker? He does what he is told or he is fired. Period. Many
times the "new blood" gets wise after a time and objects to the trading
practices. It is bye bye to him. He is an employee and must do what he is
told. At least 50% quit within six months because their parents raised them
to be honest.
One more item: The NFA is a self regulatory body. This means that the
crooks who are screwing you are an actual part of the regulatory agency. The
NFA represents only the large economic interests: the Exchanges, large
clearing firms (the ones making a killing clearing all these dirty trades),
and the large brokerage firms. The elected board of the NFA is composed of
many of the people from these businesses. It is no accident that raging
incompetents and stupid little girls are sent out to "look" at firms
activities. It is a conspiracy. The CFTC is a joke. There is not one
clearing firm that doesn't know what is going on. It would all stop
tomorrow if they were interested in anything but making as much money as
possible as quickly as possible or if the regulators were interested in
anything at all.
A word here about NFA/CFTC "actions" against firms. Look at them carefully.
Many of the people who get fined just don't pay. When pushed, the "felon"
sells the firm to one of the unindicted co- conspirators and the crime goes
on. There are fines levied today on a firm or person who isn't even in the
business any more. Some firms are fined repeatedly and just keep on keeping
on. The Siegel Trading Company of Chicago (commissions are 45% of the
option premium plus fees of $155 to buy and another $155 when you sell,
bringing total fees and commissions to well over 50%) has been fined AGAIN
for something that is years old. The amount fined, $100,000, is a figure
that is roughly the commissions they screw people out of in two days. You
have no chance to get your due through the regulators. The only real cases
they actually do something about are states Attorneys General prosecutions,
civil fraud cases that go to court, or an FBI bust.
Now do you know why you lose? You are not dumb. You are not "unlucky". The
U.S. Government is sponsoring and protecting a group of criminal syndicates.
You think there is a cop out there to protect you. There is a cop out there
alright, but he's there to protect the criminals from any action you try to
bring.
Don't call infomercials. Don't answer radio spots.
The regulators will not help you. They have approved of all the devices
used by the criminals. If you got one look at the silly little girls they
send to audit the firms you would know they aren't capable of finding
anything. Just accounting types and somebody who looks at TV ads they could
have taped from their main office. You have no prayer of any help from
them. They are completely unqualified. They don't know a back spread from
a back hoe.
Crime pays, at least this kind of crime and to the tune of hundreds of
millions of dollars over the past five or so years. Newspapers? America's
watch dogs? No way. The New York Times, the Wall Street Journal, and many
other papers are in full possession of these facts and have never reported
anything. TV? Hell CNBC and Bloomberg run the ads for these criminals.
Think they will bite the hand that feeds them? NBC News is part of it. The
syndicates run infomercials on the "E" channel; even Disney is fucking you.
Everybody from the Mafia to Donald Fucking Duck is in on it. Hope this helps
some of you. Pass it around to your pals. Solution? Knowledge. Also one
day someone will sue the NFA (a class action would be nice), which means the
entire industry. Put on a witness stand any of the NFA/CFTC bimbos,
airheads, and rope-a-dopes who supposedly looked at the firms who cheat.
Ask therm about markets or trading and the settlement could be a record.
Ask the so-called brokers about markets, you know the thing they passed a
test about? Some of them think a ratio spread is a new margarine containing
a miracle ingredient..
The fact that this post will be an anonymous one posted through a friend's
closet system will tell you that I am the one who would be prosecuted for
writing this, not the crooks. This is a dirty business from stem to stern.
Download this fast because these guys have a way of purging stuff they don't
like from news groups very fast.
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