Granting permission for my broker to trade!

Slstock · 26 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 9:48 am

Slstock

Director - Equity Analytics

Posts : 6610
Join date : 2011-01-22

If he gave permission for the broker to trade and agreed to profits/losses eitherway then I see no case here.

hettdas wrote:

kas wrote:I personally know some one who has done something like that,giving verbal consent to his broker to manage his PF. In the beginning things were going well my friend was earning profits thanks to his broker.

Most of the shares broker has bought from the top were on credit , Later on with the market downturn most of his PF had to be sold for a huge loss furthermore the broker firm has sent a letter of demand to my friend to recover the losses they incurred from the trades which was around Rs.3.5Mn. My friend said "No",but I advised him to complain this to SEC. ( I'm not telling my friend is 100% correct here). I could not follow the incident thereafter.

If possible, limit your buying power to a maximum amount per moth at least, otherwise this is detrimental, Professional brokers are rear species in Sri Lanka.

මේකත් හරියට අන්දරේට ගොනා වගේ ඉන්න කිව්වා වගේ වෙන්න පුළුවන්

One of my friend invested 8 lakhs in a broker firm and allowed broker to play with. After about one year he has nothing in his Portfolio. But he has minus credit balance of 6 Lakhs. You can imagine how good is this broker . Every month he get an advice to pay interest for that minus credit balance.
Can he complain to SEC about this and get some concession?

Sasanka De Silva · 27 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 10:05 am

Sasanka De Silva

Manager - Equity Analytics

Posts : 117
Join date : 2011-03-21

Do not ever think of that. Shocked

I will join WiKi, in case if you have too much to go waste. Very Happy

wiki wrote:pl give that money to me

Sasanka De Silva · 28 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 10:21 am

Sasanka De Silva

Manager - Equity Analytics

Posts : 117
Join date : 2011-03-21

On a much serious note now, if you want to invest in the CSE and have not much time to monitor the daily activities, then I suggest you to buy some of the shares stated below than discourage your entrance.
1 - JINS,
2 - RICH,
3 - Glas,
4 - NTB,
5 - HOPL,
6 - ODEL,
7 - UBC.
They are sure to give you a good return as well as not much risk involved and the levels are not too high either.
Good Luck and Happy Investing. Very Happy

Sasanka De Silva wrote:Do not ever think of that.
I will join WiKi, in case if you have too much to go waste.

wiki wrote:pl give that money to me

Last edited by Sasanka De Silva on Wed Jan 09, 2013 10:23 am; edited 1 time in total (Reason for editing : spelling corrections)

worthiness · 29 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 11:07 am

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Join date : 2011-04-08

Do not trust brokers.

I assigned one manger of top class broker company in Colombo leaving with him Rs. 1.5m before leaving the country sometime back.

He provided me wrong information of long term returns & when I was back to country all money is gone. Further the lawyers of the broker sent me a letter of suing me, not paying the borrowing & its interest.

That is what happened to my hard earned money. Be careful. In this country plenty of crooks & goons not apprehended into law.

Slstock · 30 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 11:41 am

Slstock

Director - Equity Analytics

Posts : 6610
Join date : 2011-01-22

SO you lost 1.5 mil completely and then have to pay for credit/interest?

What happened did you have to pay?

worthiness wrote:Do not trust brokers.

I assigned one manger of top class broker company in Colombo leaving with him Rs. 1.5m before leaving the country sometime back.

He provided me wrong information of long term returns & when I was back to country all money is gone. Further the lawyers of the broker sent me a letter of suing me, not paying the borrowing & its interest.

That is what happened to my hard earned money. Be careful. In this country plenty of crooks & goons not apprehended into law.

Deva · 31 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 11:45 am

Deva

Senior Manager - Equity Analytics

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Location :

wallstreetguy wrote:Well I have been in the market for some time now! i have been speculating the market! But now i dont have the time to sit on the computer and lock my self on the screen! As I have other things to manage as well!

I realised its better to let my broker do it behalf of me, since he is a proffessional and i can monitor it! I was planning to give full responsibility on playing with my cash!

Should I open a margin account!? Because it would be riskier and would give more leverage to him which could lead to high risks!
So i decided to play on cash account! I wouldnt consider opening a credit line on this one!

Glad to hear feed back! Please keep them coming!

I use my spare time while attending to office work.
If you can plan your trading and have your targets, you don't need to be connected full time. Hope you don't engage in day trading.
GTC and GTD order placing facilities helps a lot.

SL.Market · 32 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 11:50 am

SL.Market

Vice President - Equity Analytics

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Believe Great Buddha's Saying

“Work out your own salvation. Do not depend on others.”

It is still valid to me

Good Luck

Last edited by SL.Market on Wed Jan 09, 2013 4:02 pm; edited 1 time in total

Expert · 33 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 12:21 pm

Expert

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If you and your broker are a team and if you have control over his job, like those big guys do (consider the relationship between the funding person and the decision maker), MAY BE you should. Otherwise, never ever think of this type of thing.

worthiness · 34 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 12:50 pm

worthiness

Senior Vice President - Equity Analytics

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I ignored the letter from lawyers. So far nothing happened.

This personal information is given as warning to others to evaluate the situation very carefully before entrusting brokers.

UKboy · 35 Re: Granting permission for my broker to trade! Wed Jan 09, 2013 3:44 pm

UKboy

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npp wrote: if you have had a long standing good relationship, you probably know what he is capable of. If you have mutual trust, then it is fine I guess.

Agree with npp’s comment. Even though the majority of advisors are only good for time passing, there are some seriously talent guys out there.