Professional Investment advice
Sep 20, 2010

Professional Investment Advice

My impression is that most investment clubs enjoy the stock selection aspect of operating an investment club and would not be interested in the opinion of someone who offers professional advice. My opinion is that those who use options find that to be an even more enjoyable activity.

The question is: Would you be interested in hearing that advice if it were available at no cost?  If you listen to the advice, you don't have to take it, so why not listen?

Studies have shown that investors simply are not interested.  The fact that it's free doesn't make any difference.   I recently blogged about free investment advice.

The vast majority (95%) rejected the advice outright.  I found that to be an amazing statistic.  But even more surprising was that 'very few' of those who listened to the advice accepted it.  Most people either don't trust advice (and I don't blame them) or they prefer to do it all themselves.

 The one point of the study that proved to be of most interest to me, is that those who accepted the advice (and it turned out to be good) were older, wealthier, and longer-term customers of their broker.

Mark D Wolfinger

Expiring Monthly: The Option Traders Journal