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     sweet
Member
Username: sweet
Post Number: 3
Registered: 03-2004Rating: N/A
Votes: 0
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| | Saturday, April 17, 2004 - 07:09 pm: |  
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Stock is ILU and recommendations are from top 9 among the big name brokers!
ILUKA RESOUCES:
Strong BUY..... 2
Moderate BUY ... 1
HOLD .... 3
Moderate SELL.. 2
Strong SELL.... 1
What are we to make of this?
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stoploss
Member
Username: stoploss
Post Number: 45
Registered: 03-2004Rating: N/A
Votes: 0
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| | Saturday, April 17, 2004 - 07:34 pm: |
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That they don't really have a clue???? SL
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stevo
Member
Username: stevo
Post Number: 152
Registered: 01-2003Rating: N/A
Votes: 0
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| | Saturday, April 17, 2004 - 07:37 pm: |
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sweet
Obviously they are all getting different impressions of the same stock - surely this tells us something if it is to be taken as some measure of sentiment.
Such mixed information is why technical analysis, in it's most basic robust form, is so useful.
stevo
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sweet
Member
Username: sweet
Post Number: 4
Registered: 03-2004Rating: N/A
Votes: 0
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| | Sunday, April 18, 2004 - 11:40 am: |
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Stevo thanks. Yes I do see it now. As Stoploss mentioned brokers might base their recommendations upon fundamentals but do they have clue(of the trend)? I doubt it very much. I have spent hundreds of hours in the past days and gone through all my broker based buy/sells checked against technical analysis. I can tell you today that all the trades (most of them) I lost money on were not cause brokers were wrong but their recommendations reaching me were going against the trend!
You think brokers will take TA in to consideration.
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stevo
Member
Username: stevo
Post Number: 153
Registered: 01-2003Rating: N/A
Votes: 0
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| | Sunday, April 18, 2004 - 07:14 pm: |
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sweet
Brokers are sales people. They are doing their job - making sure that people buy and sell stocks. They get paid regardless of your success. The recommendations are put out to entice us to action.
Whilst brokers may, if they think about it, derive some benefit if you succeed they tend to have a shorter term focus. I suspect that their performance is measured on monthly turnover or some other such measure. It can be really hard to have a long term focus.
That is not to say that there aren't some excellent brokers out there. However there is only one person responsible for our trading record.
stevo
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scarrie
Member
Username: scarrie
Post Number: 129
Registered: 08-2003Rating: N/A
Votes: 0
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| | Monday, April 19, 2004 - 01:03 am: |
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If you were so good at picking stocks that you could be regarded as a professional and members of the public followed your advice, would you be throwing on the suit and tie and going to work each morning to work for a broking firm for commission? If you're that good, why would you need too. Trade your own account from the comfort of the nearest beach.
But then again, what other profession can be so highly paid, and still keep their job, for doing such a poor job.
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suemac
Member
Username: suemac
Post Number: 60
Registered: 01-2003Rating: N/A
Votes: 0
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| | Monday, April 19, 2004 - 10:29 am: |
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Read a comment recently...
"Stockbroking is the amazing industry where clients in Jaguars and Rollers drive into the CBD to get advice from people who caught the train to work"!
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new2waix
Member
Username: new2waix
Post Number: 713
Registered: 10-2003Rating: N/A
Votes: 0
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| | Monday, April 19, 2004 - 10:53 am: |
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I don't think relying purely on broker recommendations is a smart investment strategy. Especially considering how the structure of all broking houses. In fact, relying on broker recommendations full stop is not smart!
Brokers get paid a kick back per transaction. So the more 'buy' and 'sell' recommendations, the more transactions they can put through. Who writes these recommendations? The research arm of the company. Talk about conflict of interest.
In the US there have been several law suits regarding the above conflicts. For those who have not seen the move, 'Boiler Room', go rent it out. May seem a little far-fetched, but the premise is most likely quite accurate.
I have read comments from people who monitor the recommendations of brokers and many brokers don't have a good track record. For instance, one leading broker had a win/loss ratio of 1:10 for one financial period (maybe 2002?). This was the same broker who had a strong buy recommendation for AMP and COH (at their double digit heights).
I think that a consensus of broker research, mixed in with strong technical and/or fundamental analysis can be profitable. Ultimately, at the end of the day it is YOUR final decision to what you buy and sell.
Caveat Emptor - Buyer Beware
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sweet
Member
Username: sweet
Post Number: 13
Registered: 03-2004Rating: N/A
Votes: 0
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| | Monday, April 19, 2004 - 05:19 pm: |
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I think, fine to use brokers if one doesn't have the luxury of time to research. Fundamentally sound stocks, if held long enough are bound to show profits after a year or two; 2002/2003 being the exception. But, I personally found out that that "holding" doesn't please brokers, really!
I have dealt with several brokers since 1995, and they were happiest with me during doct.com period! Very happy. We were inseparable.
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