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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (12956)	6/24/2002 2:38:39 AM
From: J.T.	Respond to of 19219

After graduating from the University of Wisconsin in the spring of 1987, I interviewed with some of the major brokerage houses in the nation. They all laughed and said no and suggested I go get some sales experience and come back. I refused to take no for an answer and was determined to get into wall street no matter what I had to do even if that meant I had to get thru 100 no's before I got my yes. In attempting to become a stockbroker, it is a requirement to be sponsored by a securities dealer before you can even get an opportunity to take and pass a Series 7 general securities exam before you can be licensed to sell securities. In late summer of 87', I finally got my yes and got sponsored by a penny stock firm out of a suburb of Chicago to take my test. After passing my exam in September 1987, I was put thru the firms training program for a few weeks before I could start selling. It was there that I got my first taste of reality of what it was really like to be a stockbroker and the phrase "cold call cowboy" hit home. Smile and dial and it was just a numbers game as the manager would say . My peak day was over 400 calls in one day. I developed thick skin real early in my career. I got an opportunity to start selling in October 1987 just a few weeks before the great crash. I watched the firms 'sales pros' in awe as the firm was market maker to a bunch of junk penny stocks that has a bid ask of 9 to 15 cents. The spreads were highway robbery. But the pros could shove sunshine up ur @ss and sell sand to anyone in a desert. After the market crashed on October 19, 1987 even the pros commissions were down 70%. Needless to say, I left that firm in November 1 month after the crash and I thank God I never made 1 sale in my brief tenure there. I had a night job as a cook in a fancy restaurant to keep me afloat making a living as I knew student loans were about to hit month after month. My first taste as a broker was bitter but I will always be thankful they gave me the chance. In February 1988, I hooked up with a national financial planning firm and was a paraplanner for the top producing financial planner in the division. In addition to having my series 7 exam, I passed my insurance exams so I could be qualified to sell variable annuities and variable life insurance policies packaged into financial plans that the firm sold. Here I learned early on in the business about company incentives they would put out for the planners if you sold a certain amount of financial plans they heavy hitters would get all expenses paid with spouse on lavish vacations. I learned this happened most everywhere I worked in wall street world. This top producer sold so many financial plans that he was buried and overwhelmed and I spent my entire 6 months writing financial management proposals and made recommendations for the top producer to present to his clients to sell products based on their specific needs. These products ranged from life insurance to disability, long-term care, in house mutual funds, annuities, market certificates... You name it, we sold it. I got hands on experience with reading old life insurance policies and how to convert the multiple policies into new ones. I learned 1035 exchanges, and the multiple forms of various revocable and irrevocable trusts. I was fortunate to read numerous wills, stock and mutual fund statements from all the different clients who dropped off all their personal financial material in order for me to make prudent financial plans based on their needs and risk tolerances. I was a para-planner for 6 months. I became a personal financial planner myself in September 1988. I worked many hours and met with the majority of prospects after 4 pm until 11 pm. I developed my own book of business with this company until May 1992. I didn't like the late hours, and I really wanted to get into the stock selling end of the business. In May 1992, I got my break. I hooked up with a regional bank that cleared through national financial services crop. I was in charge of managing 6 branch bank locations with well over 200 million in assets. The previous brokers that were there were like a revolving door and screwed some clients pretty bad. I learned real fast how to be mr fix it and smooth the waters with existing clients. More than anything else, people just want to know that you care about their problems and that you are really out to help them and not sell them a bill of goods. I learned how to understand their fears and what really made them tick. And I learned how to help them live their dreams reaching their financial goals. I bought and sold a lot of individual stocks, mutual funds, and variable annuities. I also sold a ton of CMO's -collateralized mortgage obligations thru fannie mae and freddie mac. In 1994 this bank got bought by another regional bank that had ideas that i thought were not in the best interest of my clients. I left after the new bank pulled out the old quotron machine and we were left with a worthless delayed quote prodigy system. In May 1994, I had an opportunity and offer to go with one of the top three major wirehouses in the nation but turned it down. They wanted to buy my book of business and bring all the clients and connections I had developed from the bank but I went in a different direction. I hooked up with a national independent brokerage firm. It was here for the next 3 1/2 years I learned first hand about stock market technical analysis under the tutelage of Ralph Bloch. Ralph wrote a market update everyday for the brokers and I developed an appreciation for his technical analysis with the highest respect. Ralph allowed the brokers to call him anytime you had a question on any stock. In my numerous calls to him through those years, he would be quick to the point to blurt out support, resistance, when and where to let a stock run and where to cut bait. His calls on average lasted no more than 15 seconds. A very busy man. Ralph was very instrumental in teaching me about stock market technical analysis. It was at this firm that I learned all the who's who in the world of wall street. I learned which market gurus to follow and who to stay away from. I recognized who was right and also recognized who was more often wrong. Unfortunately one of the guys I followed early on who was consistently wrong was the one who wrote THE Book on Elliott Wave. He could argue points with the best of them. But he cost people a lot of money by being wrong through out the great bull market. He was calling for repeated crash dates all thru the 90's and I still have some of these old newsletters.. God forbid, if we ever do get to nuclear war, he will ultimately be proven right. But at the end of the world, it won't matter anyway. But we can save that subject for another day. I left that firm in January 1998 to eventually team up with another broker at a regional wirehouse. It was our best year in gross commissions ever. I was living life in the fast lane. We would buy and sell the hot stocks of the day du jour, sell mutual funds with extra juice to the brokers and convert old annuities from competitors clients into new ones. After market hours, we would head out for beer almost every night living it up and I wouldn't get home until after dark. In early 1999, this got real old for my wife taking care of two infant kids and me always late or blowing off dinner. She gave me the ultimatum to get my act together. It was either her and the family life, or living life in the fast lane and the booze. It was a simple decision for me. It took me a little while longer floundering the fast life, but I eventually gave it up quit drinking on July 29, 1999 and haven't had a drop of alcohol since... unless you count non-alcoholic beer as a drop. I quit being a broker in December 1999 right as the market was going parabolic and have position traded since. I let my brokers license lapse at the end of 2001. Funny, the regional firm I left just in 99' sent me a letter in the mail last month asking if I would come back. My wife and I had a good laugh as my days in the fast lane are history. I enjoy the simple life with my family and two kids. Why do I bring my brief bio up? Very simple. I know what brokers do, what makes them tick, how they make money. I know good apples from bad apples. I have been witness to many market scenarios. I have had good experiences and bad. I also know first hand what makes people tick. I have seen people cry in my office. And I know people have fears and dreams. It has always been my passion to help educate people to become financially independent and reach ultimate freedom. My passion has always been stock market technical analysis. I used to get all kinds of investment newsletters in the 80's and 90's. Fosback, Prechter, Leeb, Davis, Garzarelli, and a host of others. As for this website. I don't need the money. We are living quite comfortably and well within our means. I could continue doing just what I am doing now. There has been many times on MITA where I have not returned or answered questions from posters because I was off doing other things. I am doing it because I decided to make the commitment to make a difference to those who are intimidated by the market or brokers. I don't feel that commitment now from people I have no intention of sharing information with. I have seen too many good people on SI who have given freely and unselfishly of their time or talent get mocked, derided and have the life get sucked out of them by the brood of vipers and vultures who post on these boards. The same people who learned much about the market from the posters they mocked. I will be quite happy dismissing myself from SI or posting to a minimum. I live a very simple life. I will be more than happy to address the rest of your points in future posts. But this post at this time has become long-winded. When you have time, tell me about yourself and your years of experience in the market. Best Regards, J.T.