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Stock Broker Success~ It's all about the Numbers

Posted In:  News and Opinion

Have you ever wondered how a young inexperienced stock broker in training with Merrill Lynch or Goldman Sachs can be so correct on so many investments? He/she just learns to play what is called "the numbers game."
Here's how it works~The new-by is required to produce a list of 1000 prospects (personal friends, family friends, enemies, old girl friends/boy friends, high school remote acquaintances etc) along with a phone number. He is then instructed to divide the list into equal parts of 500 each and label one list A and the other list B.
The training requires him to first call all of the prospects (suspects?) on list A and introduce himself blah, blah blah and indicate that he are not looking to sell anything today, "just letting you know I'm, in the investment business. And, oh by the way, my company research is showing that the stock market is on the upswing." After all 500 on list A are called, he then will be instructed to call all of those on list B but tell them that the company research indicates that the market is going down.
After a period of time (month, quarter) he will divide list A or list B (depending on which way the market went up/down since the last call.) in half and create list C and list D of 250 each. He repeats the process that he completed with A/B and reminds them that his company research was correct and to keep him in mind if they have any questions. Remember, this is the second call to these folks.
You know what's next. Market goes up (or down) and he divides the "good list" once again into list E and list F of 125 names each. same story different verse. This time he reminds the "lucky" 125 that this is the second time that he has given the correct info.
Finally, the "winning list" is then divided into list G and H of 62/63 names each. This is his list of prospects that will be reminded that he has told them three times in a row how the market will react in the future and he continues the calling process.
The "winning list" of about 60 names +/- and phone numbers are now considered to be prime prospects, because they have observed, over time, how this young broker has successfully predicted how the market will react on four different occasions.
The "losing lists" can be used later on after he becomes a better salesman.
He will probably end his final call to them with this "Well Jim, I'm not predicting that I will always be able to steer you into a winning position, but I promise to work hard for you and your family."
And who could ask for any more?


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