Neighborhood Brokers
So do you have the typical neighborhood broker (Merrill, Smith Barney, etc.)? I recently met someone looking into trend following for the first time. She is doing her due diligence and asking all the right questions of the trader she wants to hire to manage her money. The problem? She has a typical neighborhood broker already. I am sure her broker is a perfectly fine guy, but all he can say about trend following trading to her is that it is “risky”.
Of course her broker doesn’t attempt to define “risk”, he just throws the term around. He also doesn’t bother to acknowledge that all trading and investing is risky if you have no plan. I wonder if he thinks buying and holding the Nasdaq since 1998 is “risky”?
The good news is that this lady sees her broker’s weak argument. Over time more people will come to see her smart choice. Just as many will never get it.
