Ravi’s story is true for almost all you investors who followed advice but did not receive good follow on advice. The follow on advice helps you to protect capital, earn good returns and take you through turbulent times. Do not try and save money by taking free advice and losing much more in the process. Pay for good advice and receive the much needed follow on advice.
Advice is freely available but it is more expensive than you think
Advice is available in plenty, follow on advice is almost absent. The lack of follow on advice causes a lot or grief to those who have acted upon advice picked out from the plenty. In the investment world, follow on advice can make or break an investment. Are you getting the follow on advice?
You listen to your financial service provider, you read newspapers and magazines, you watch television and listen to radio shows and you browse the net for investment advice. There is plenty of advice available both free and paid. There is advice on stocks to buy, mutual funds to select, insurance policies to take, assets to choose t etc. You, the investor, is a much sought after person and hence you receive advice on where, when, how, what to invest from all quarters. However, once you have made an investment decision based on the advice available to you, you will have found out that there is no one telling you what to do with that investment. This is especially true when your investments have gone sour.
Ravi had some extra money, which he wanted to invest in equity. He opened a broking account with an online broker in order to purchase equity shares. He then started following the markets in media, read the advice given to him by the on line broker and joined market forums in the net. He then bought a stock in the infrastructure sector, which was booming then. He bought the stock because every advice he heard or read was about the spectacular returns that infrastructure stocks were likely to generate. Unfortunately he bought the stock at close to its peaks. The stock price initially rose and Ravi was very happy and again none of the advice he read or heard told him to get out of the stock. The stock market bubble burst, the stock price crashed and Ravi did not know what to do. Should he hold on to the stock or sell it at a loss? Where should he go for advice?
Ravi had followed the advice given in the print, electronic and net media in buying the stock at the peak. However the same media was silent on the prospects of the stock after the crash. After all, the advice was free and no one is liable for the advice. Ravi, then went to his close friend a good market professional, who told him the story on infrastructure was over and the particular stock he owned was of a singularly poor variety. His friend told him to take his losses and then look for better opportunities to invest elsewhere. Ravi followed his friend’s advice and was grateful for that as the stock went on to lose almost all its value.
Needless to say, Ravi listens to his friend’s advice on investments, as he knows that there is a follow on advice available. His friend being thorough market professional charges him for the advice, which Ravi gladly pays? Ravi knows the value of advice coming from a professional.