Broker for half decade with delima
- Thread starter LEAPup
- Start date
Ten years I watched the industry screw me and everything around it. Now, it's imploding. The problem w/retail is, the firms will do whatever they want and lie to you. You'll represent yourself to them, the firm will leave you hanging, and you'll look the fool.
Walk. To do something daily you don't believe in will shorten you life, or at least surely make it miserable.. Guys right now are hanging on by their fingernails. Call up Bright, or Hold Brothers. Cortez burned his ships. Trust me. You'll find a way. I did. Can't say it was pleasant, but the satisfaction of not only removing myself from such scum, but actually helping bury them, is truly a great source of satisfaction.
The brokerage industry as you know it has no future. The few that survive will have little capital, which is their ax. Without it, they'll stumble for years.
Your choice is, to stay quiet, sweep up the crumbs, and hope you climb to the top of the heap. If that's how you choose to live, have at it. But it's not for me. It depends on your demeanor. I enjoyed the business for a long time. But if, at your age, you're this torn, you'll have huge problems psychologically. Do what you love. Guys your age go to Medical School. Just do what you love to do. Don't compromise.
BTW, the best sales business in retrospect is an Independant Insurance Agent. Property Casualty. Captive customers, renewals, ......never met one who didn't do very well. But I did know one that sold his business and went w/Paine Webber. Brought all his old buddies over and was a huge producer out of the gate. Not only do they hate him, (an easy thing to do), but they're all suing him and the firm. They're so stupid, you can't give them a huge pool of money with a guy who knows nothing, and make it work.
Walk. To do something daily you don't believe in will shorten you life, or at least surely make it miserable.. Guys right now are hanging on by their fingernails. Call up Bright, or Hold Brothers. Cortez burned his ships. Trust me. You'll find a way. I did. Can't say it was pleasant, but the satisfaction of not only removing myself from such scum, but actually helping bury them, is truly a great source of satisfaction.
The brokerage industry as you know it has no future. The few that survive will have little capital, which is their ax. Without it, they'll stumble for years.
Your choice is, to stay quiet, sweep up the crumbs, and hope you climb to the top of the heap. If that's how you choose to live, have at it. But it's not for me. It depends on your demeanor. I enjoyed the business for a long time. But if, at your age, you're this torn, you'll have huge problems psychologically. Do what you love. Guys your age go to Medical School. Just do what you love to do. Don't compromise.
BTW, the best sales business in retrospect is an Independant Insurance Agent. Property Casualty. Captive customers, renewals, ......never met one who didn't do very well. But I did know one that sold his business and went w/Paine Webber. Brought all his old buddies over and was a huge producer out of the gate. Not only do they hate him, (an easy thing to do), but they're all suing him and the firm. They're so stupid, you can't give them a huge pool of money with a guy who knows nothing, and make it work.
Flytiger, I greatly appreciate the advice! Yes, I believe you're 100% in that the brokerage industry is without future.
It's really sad to see what was once held in high regard, fall into the same classification as personal injury lawyer, and used car sales.
When I was new, people would hear "Stockbroker" and think professional rich guy, who more importantly, was there to make money for OTHER people first... Now, they hear Stockbroker, and run away.
I'm going to persue trading for a career. I know there's certainly nothing easy about it, but I can at least sleep at night.
I've got a 58 year-old Client who has just entered Law School after retirement from the State Police. He wants to work in corporate law or real estate. He's proof that no one is too old to learn.
As far as Med School, I have another Client who is so worried that Obama is going to get elected. This guy used to smile all the time. Now, he is as dry as sandpaper. He is worried about Obama and socialized medicine. He's already fighting the insurance companies to pay him pennies on the dollar for what he bills... If I told you what he pays himself, you'd not believe me. It's less than six figures per year...
As far as financial firms and recruiting go, I want to take a bath every time I met with one over lunch. The promises (lies) were, and still are mind-bending whoppers!
Where is the World did INTEGRITY go?
LEAPup,
I was a broker at two wirehouse firms from 1996-2000 and I know EXACTLY how you feel. When I was getting ready to leave mother M was at the early stages of moving to fee based asset gathering blah blah blah. Big Dave was sweating bullets over LTCM but we were still running "BE Bullish" ads.
And I just walked away to trade full time. And let me tell you if i could do it again I would do it differently.
First let me say that 90% of my book was built on cold calling and seminars. The other 10% was friends and family with small IRA rollovers. I'm not being cocky here, but I was really good at cold calling.
I built some great relationships with people. So much so that I often got Holiday cards and wedding invitations from clients. Maybe because the bull mkt but also b/c I'm just personable.
But what I did was just walk into my managers office one day and say "I'm tired of this." I tossed my cellphone in the garbage, cashed out my Munder Netnet fund, my 401k, my MER stock and opened an account at MB Trading. It was September 2000. I had ups and downs...blah blah..still in the game after a few breaks. Making a living..not a killing. Life is good.
What I should have done...
Never burned those bridges with clients. I had a few 7 figure and high 6 fig clients that I was in good terms with. I could have gone to an independent brokerage , or a family and friends advisor set up like IB has, or maybe even a mini hedge fund LLC thing. In fact my biggest client once asked me if I ever thought of going out on my own. I should have listened to him.
At the time i was in my 20's
...I had no family to support...I was just interested in making quick cash and living the party life 7 days a week. Going all-in on trading fulltime was ok for me then because I really didn't have anyone else relying on me. Now I have a wife and children to support, and while things are good, I certainly wouldn't mind and extra cushion of advisor fees/ commish once in a while.
What I'm trying to say is just consider a dual role as broker and trader. There are lots of places a registered rep can go to be an independent. And most of them payout 80%+..even if you're just doing straight stock business.
Best of luck.
uptik2000
I was a broker at two wirehouse firms from 1996-2000 and I know EXACTLY how you feel. When I was getting ready to leave mother M was at the early stages of moving to fee based asset gathering blah blah blah. Big Dave was sweating bullets over LTCM but we were still running "BE Bullish" ads.
And I just walked away to trade full time. And let me tell you if i could do it again I would do it differently.
First let me say that 90% of my book was built on cold calling and seminars. The other 10% was friends and family with small IRA rollovers. I'm not being cocky here, but I was really good at cold calling.
I built some great relationships with people. So much so that I often got Holiday cards and wedding invitations from clients. Maybe because the bull mkt but also b/c I'm just personable.
But what I did was just walk into my managers office one day and say "I'm tired of this." I tossed my cellphone in the garbage, cashed out my Munder Netnet fund, my 401k, my MER stock and opened an account at MB Trading. It was September 2000. I had ups and downs...blah blah..still in the game after a few breaks. Making a living..not a killing. Life is good.
What I should have done...
Never burned those bridges with clients. I had a few 7 figure and high 6 fig clients that I was in good terms with. I could have gone to an independent brokerage , or a family and friends advisor set up like IB has, or maybe even a mini hedge fund LLC thing. In fact my biggest client once asked me if I ever thought of going out on my own. I should have listened to him.
At the time i was in my 20's
...I had no family to support...I was just interested in making quick cash and living the party life 7 days a week. Going all-in on trading fulltime was ok for me then because I really didn't have anyone else relying on me. Now I have a wife and children to support, and while things are good, I certainly wouldn't mind and extra cushion of advisor fees/ commish once in a while.
What I'm trying to say is just consider a dual role as broker and trader. There are lots of places a registered rep can go to be an independent. And most of them payout 80%+..even if you're just doing straight stock business.
Best of luck.
uptik2000
I GREATLY appreciate all of you guys! (and gals) I never give up. When there's a fire inside to win, it takes more than cold water to put it out...
Those with drive to do right by their Clients get kicked in the nuts at times in the short term. After it's all said and done, I can live with me no matter how many bill collectors call...
Thanks guys! Again, I appreciate all of you!
Those with drive to do right by their Clients get kicked in the nuts at times in the short term. After it's all said and done, I can live with me no matter how many bill collectors call...
Thanks guys! Again, I appreciate all of you!
Yea I dont know, Its hard enough to make the jump by yourself let alone having to carry a wife and 3 kids on the jump at 36. Its a near certainty that even if your a success at trading at 46 your probly going to find yourself in the position of being 37 or 38 with a blown out account and will have lost your book by that point.
There is alot of interesting positions between the salesman and trading in financial services. Personally, I would be looking to strike out on my own as an advisor as opposed to trading.Lets be realistic, money management is not a dieing business, its just that the whole broker/advisor model is an ineffecient joke. That inefficientcy creates alot of opportunity.