How to Sell Stockbroking to a Skeptic

0

The most trending news across the world now is the exit of Britain from the European Union. From the point of view of a stockbroker, this is of massive significance. The markets are going down and uncertainty looms.

CMC Markets, a leading stock broking firm just gave issued a press statement that they haven’t taken a hit due to the volatility in the financial markets and haven’t lost any money on their investment portfolio. However, that is not the case with everyone else. People are skeptical of making an investment move. So, the big question is; how will a stock broker sell his service to a skeptic?

One of the key question that will come from a skeptic is “Is this the right time to invest?” Every stock broker worth his salt will confess that this is one of the commonly asked questions. The best response in the current economic scenario is to buy stock when it is going down and sell when the price goes north. Try to prove the point that when most people are selling shares the share price will start going down since there are many share in the market to buy from. The demand is less and hence price goes down.

Slowly, when the economy corrects itself, for instance, in the current scenario, when Britain negotiates a fair deal with the European Commission, the confidence in investors will go up and there will be more people after these stocks. The price will eventually go up then. The point is, any time is a good time to invest, if investment is done wisely.

Another common question that a skeptic would ask you is “Why can’t I invest myself when I cannot get a personalized advisor for my small investment size?” He is asking a very genuine concern. A brokerage firm will provide a personalized advisor for a flat fee only if the investor comes with a large investment of at least GBP 200000-300000. Then should someone with an investment size of few thousands go with a stock brokerage. He can better do it on his own.

That way he doesn’t have to pay any commission to anyone. Remember, skeptics are first time investors. They are skeptic for two reasons; either they are first time investors or they lost money the first time they invested. In both the cases, you have to deal carefully.

Investment firms like CMC Markets have not taken a loss during the Brexit volatility because they could foresee the impact coming on the market. They factored the worse-case scenario and spread their risks on various portfolios. If a layman had gone to the stock market on his own, he would have burnt his money and felt sorry for himself.

So, when a skeptic asks why he can’t invest on his own, you must tell him that most people cannot factor an impending economic volatility and will eventually lose money. Stock brokerage firms are professionals and have advisors who map the ups and downs of the financial and economic trends on a daily to hourly basis. Your investment is safe in their hands.

There are other scenarios where your selling skills will be tested. Pensioners can often be skeptical and there are reasons for that. Their prime money making age is past and they survive on their pension. They want to make sure that the money is safe. In today’s well connected world, an investor can choose where he wants his money to be invested. People in Europe will want their investment in Gold and US Dollars due to Brexit volatility. That is why you are seeing European markets going down but the US stock scene is relatively stable. So, you can tell your skeptic prospective customer that his money will be safe even if the financial scene at home is bad. The world is a marketplace and money doesn’t have religion or nativity.

Though not a deal breaker, some people do insist that their funds be invested in the most secure place possible. They are very choosy. They will give you a hard time convincing them thought they have decided to go ahead with you. They just want to hear nice words from you. To such customers, you can propose index funds. Index funds are safe and their investment should give them a healthy return on maturity.

The following two tabs change content below.
Hi, I'm the founder of The Money Spot - I hope you have found the information on the site to be useful. I love talking about all things related to finance, business, marketing, blogging and the most important things - family and lifestyle. You can learn more about me here, or visit me on my other website Monster Piggy Bank.

Latest posts by Glen Stephenson (see all)

Share.

Leave A Reply