The movie ‘Wolf of Wall Street’ has consistently maintained its position in the top 10 movies when it comes to the stock market and the market bubble. This American dark comedy movie talks about the protagonist Belfort and his broking firm, Stratton Oakmont.
The movie initially circles around how Belfort’s great achievements and his provincial uni-directional approach towards stocks and investing. Soon the movie catches up as a black crime-comedy number showcasing how Belfort’s firm gets engaged in fraud and corruption on Wall Street. Now, this is not a movie review, apart from the excellent fiction and acting, there is a lot more to the movie.
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Here are the top 5 DON’TS the movie teaches us:
Good looks do not guarantee a good play
This rule holds good while you select your financial advisor. Research states that human beings take around only 7 seconds to judge people based on their appearance. Belfort had a belief that by training people to talk and walk like professional advisors, leads could easily be converted into clients.
Beware of such dupli Belfort and do homework on the advisor’s profile and past work before you approach him or her.
Do not play with your client’s money and emotions
Money has a huge emotional quotient. Everything we do to earn money is not just mental or physical but also emotional. If you are an advisor or deal with people’s money, please make sure you take care of it as your own.
Belfort’s idea was to ‘Wolf’ on his client’s money as he considered them to be innocent lambs. Do not do that. Even if you succeed once, this will definitely establish a bad reputation for you proving fatal in future.
Establishing and growing an excellent client relationship is very important for any successful advisor. You ought to take ownership and responsibility when people are trusting you with their money
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Articulate, review and re-review
Once you have articulated a strategy for your client, do not forget to review it. Financial wisdom is a great deal to be accomplished but everything needs to be brushed up and cross-checked. Managing money especially in the stock market is majorly based on speculations and estimations which are backed by the past experience and financial wisdom of the financial advisor but nothing comes with a guarantee.
There is nothing like a one-size-fits-all approach when it comes to investments. One combination which may have proven to be a jackpot for one client may not work for the other. Tailor-make each client’s plan and do not forget to review it at every stage.
Go for the established ones
Whenever you come across an offer that is too-good-to-believe by a new firm and an above-average offer by an established firm, financial legend says always go for the established firm.
Since it is the client’s money, traders tend to take that extra risk while trading but do not forget what we said in point
Belfort was a new entrant in the stock-broking business having no past experience and record. People who trusted him with their money suffered a severe downfall as the company he invested in declared itself bankrupt.
The offers by new companies may seem to lure initially which is an obvious thing as the company is putting an effort into establishing itself in the market, please conduct all the necessary reviews with due diligence before you invest.
Do not speculate if you are not sure
Speculation is no child’s play. Although it may seem very easy as you just have to guess the stock this is a very contemplative thing to do. A famous financial advisor once said, “Do not speculate unless you can make it a full-time job”.
Guess-work does not work in the long run. It may prove fruitful once or twice but that may be beginner’s luck just like Belfort had. Establish your decisions on influencing factors and major elements when it comes to selecting the stocks.
Financial Management is a critical business to be in. upgrade your skills, improve your decision-making and make your speculations next to accurate. Once you treat your client’s money as your own and work towards making millions out of pennies, you will be the most sought-after advisor in the market.
Better Advising, Better Investing