Monday, October 13, 2008

Beware of Brokers

Please beware. Right now is the time when you want to check your d-mat accounts regularly. I received information about brokerages possibly rotating shares between customer accounts to keep the positions open and to maintain liquidity. Moreover, your broker will most likely try to lure you into buying stocks by providing you extensive credit for day trade and investments at very easy terms. This would be a common strategy for most brokerages in the country right now because retail customers are weary of fresh positions in futures and want to deal in cash to be safe. Such tactics will act as "sweeteners" for the customers to keep trading and pay brokerage to the brokers.

So don't fall for any candy offers your broker tries to give you. Be smart. Don't be stupid. That's easy if you don't be greedy.

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