Now watch, they will point to your post as proof positive that you are indeed a paid hireling, a mercenary on the payroll.
Even as these people wise up there is always a new flock around the corner. The basic boiler room premise is to just get a fresh list and cold-call the daylights out of it. Then have a mark tell another mark and so on.
The main problem, as I see it, is that the markets have caught the eye of every one across the socio-economic spectrum. However, the bulk of theses people only have the funds to speculate on pink sheet style issues. Being a bit naive with respect to the markets they look for a white knight and find a person who satisfies their need for a leader.
Such a leader postures himself or herself as successful (How much money did you make last year ?) and urges buy and hold. Then the story about the short-sellers, the calling in of certs, the MMs are running, then they are back, then they have spoke with management and such and such is happening and eventually they are disgusted with management but guess what? Spectrum or whatever is the next hottest thing on the block, look at these stats!
It does seem incredible that this can be pulled off. But Boiler Rooms have been using the same sheets for years. If you went into a boiler room 10 years ago the cold callers are using the same lines today. I remember in 1992 I was told by a boiler room manager that the single best hook was to open with "Hello Mr. Prospective Client, this Bob calling back. Remember a few months back when we spoke and I told you about YADDA, but you said you wanted to watch it? Well, I guess you missed that one but I was just calling today to let you know our research department is working on a new recommendation and........"
I get that same call about 3 to 5 times a year.
Speaking of Canada, what is the approximate tax on your ill-gotten gains? I've been thinking about buying some Canadian bonds and was told by someone that he thought the tax on the yield or the tax on capital gains is high. I know someone who was in the business of trading Canadian financial instruments but have not seen him in a while.
I aspire to be a wealthy international financier. Where do I apply? Barring that I suppose I could just lie in wait for the next carp stock to come on the scene and sell into the buying frenzy.
I know what you mean about the comparison of some nickel-dime outfit to a real player. This comparison is also used by boiler rooms. It's hard to believe people go for this stuff but I imagine greed is a powerful motivator. Reason goes right out the window when cash is involved.
I guess I'm a cynic. When I was in NY trading off the floor I saw a number of people blow up. Many did not even trade minor league stocks. So it's hard for me to feel empathy for those who get killed by them. It's hard enough to make money trading quality much less junk. |
