“Hello, are you still interested in the subject of investment? I’m calling today to talk about it. Of course, I won’t give you at once the most hot company for this moment. At the beginning I need to be sure whether I want to work with you”. It is basically one of the calmest conversations which I had the “pleasure” to have with all scams, whose purpose is to hug your cash on alleged “hot investments”. As you can guess it is call from another shitty boiler room.
Recently one of friends showed off that in such a company had started the work. Unfortunately, I didn’t share his enthusiasm. Today in the issue of warning for those, who have small knowledge about the stock exchange. Also for those, who want to have quick profits, golden roses and promises.
As a warning, not to use golden advice of somebody about whom you have no idea – who he is and he catch you by the phone.
Boiler room calls
The subject is hot, because the number of phone calls, which I received and my friends is really enormous. We are aware of what’s going on. Persons completely unrelated to the industry – not. And they can become simple prey of beaters.
Most probably you’ve seen the movie “The Wolf of Wall Street”? If not, you should see it. If that’s not enough, watch “Boiler Room”. It’s a bit old movie, but it will show you that in this business noting changes. You will be aware to what the callers try to screw you, how much they earn on it. And what’s important, how to finish – to fully understand that what they are doing it’s not an honest business. Regardless, how would they want to bleach this shit. You will also understand that your profit is on the last place in this entire carousel. You are important only until you make the transfer. Later to say – fuck off.
“Hot companies, amazing IPO occasion, quick profits!” – boiler room in practice
It begins with a phone call from companies, which names most often you aren’t even able to repeat. And to the question – from which company is the caller – you will often hear so quick response that you will understand only some “blablabla”. Where from they have your phone number? You won’t also find out, because they always say that it is from random database. The fact is that somebody simply sold your data (bank or any other company, in which you left contact data buying the equipment or registering on the website).
Not necessarily a payment of big cash will be their aim. They can begin from smaller amounts – such casting fishing line, you may even earn a few cents. The goal is one – encourage you to pay larger amount. Then you can slowly say goodbye to your money.
You will hear something like:
“Did you hear about the closest large stock exchange debut?”
Now it is Snapchat, so that you know. Irrespective of what they wouldn’t choose, remember that they don’t participate in this issue. If they buy shares for you on the market, they buy them certainly above the issue price of the given day. You will lose in advance.
Texts about large companies from the US Stock Exchange are supposed to pull the wool over our eyes. Great America, large money! Bullshit:) Remember, if by a chance you wish to try.
Who is on the other side of phone?
Somebody, who tries to give an impression that is familiar with the financial market. Great financial shark, working actually as a seller over the phone! On the other side usually is a person in the age of 18 years, and just beginning in the first work. Often they are not after graduation, and if it is not necessarily (and generally isn’t) not related to finances or economics.
They undergo training of above all sale and from the legal side – not to provide recommendation, because in Poland the Financial Supervision Commission (FSC) license is needed or huge financial penalty shall be applied. It is such nice putting words into something what still beaters will do. They won’t provide a recommendation, but will try to sell shares of new IPO (e.g. Snapchat, which soon will debut on the market).
As my friend told me – There are people from the street. The rotation is gigantic. In the end it is necessary to make several or few hundred phone calls in order to hunt the deer, which will pay.
How are employed the callers?
These are usually marketing services contracts, i.e. calling customers, who are potentially interested in investments on the market. Such a company provides services for other brokerage company located usually on a small island. Let it be already the first signal for you, that something is wrong here, isn’t that right?
Another issue, have you ever received a phone call from a representative of the Polish broker that works licensed under the FSC in Poland. I mean the most well-known Polish brokerage houses? I don’t want to list them, not to confuse them with beaters. If you have received the phone call, it usually relied on commercial offer and services. A very fact of opening the account was often their goal. However, they weren’t talking about deposit monkeying on hot debut, which will make you profit. Such things won’t simply be unnoticed. The company would be worthless on the Polish market.
Are you a sucker?
Most probably, if I asked you this question face to face I would get punch! Think, if you pay the beaters, who call you – then he will say such words. I have a sucker, who paid me and the entire room will start applauding him. Would it be nice to hear that, being aware that they are talking about you?:)) Sucker it still quite nice word; believe me they use much worse.
Why you have no chance to earn!
It is a simple math. You don’t even need to pull out the calculator:)
You pay to company e.g. 10 000$. It isn’t gigantic money, because beaters can take out from people even 50 000 or 100 000 dollars.
At the start from your 10 000$:
150-400$ goes to the person, who convinced you to this deposit
5% from 10 000$ is the commission
the manager and owner must also earn (I don’t know these rates), but I assume that they must be on a level of minimally 5%.
let’s assume that next 10% of this amount is already included in commissions
Generally, at the start from your 10k$ you already lost 15%.
Most banks offer 1-3 % on investments. Well… 3% it a rarity. Results of investment funds, they don’t usually fluctuate in % profits on a level of 20-40 %. And there are persons with experience, economists, and investment advisers. Do you entrust them your money in spite of knowledge that they have?
So tell me, why such a guy on the other side of phone is able to blarney you, that you pay your money to him. And he has no clue about what he is doing. If not the morning meeting, on which exchange rates are read out – he wouldn’t even know how much on the given day is USD/PLN.
While payment you lose those plus/minus 15%. Great, super debut must bring a minimum 15%, so you had zero, not including anything that would bring a profit. And your profit, as I mentioned at the beginning, is on the last place.
If you earn, and it may happen, you will state “Well, they are good; they gave me a good profit”. You will pay more, as they blarney you. And the next “investment” can already not be so good. Beater with the company then again they will earn on you, and you will catch on too late. Then usually appears desire to try one more time. There was one profit and one loss. So maybe another investment, to which certainly the beater will persuade you, will give a profit. And so on a loop will tighten.
How to get rid of such phone calls?
For me it is simple. If you wanna get rid of boiler room calls – do it. I was receiving even several calls monthly. All numbers were added to blocklist. After some time, the companies changed their numbers and were calling from other. Those I also added to black list. It is a function in your phone, thanks to which you can’t see phone calls from blocked numbers. Easy right? And how much time you will save. Even if you aren’t interested in such “investment”, but you aren’t able to quickly finish the conversation, let’s count – how much time those 5-10 phones monthly take. 5-10 phones for 3-10 minutes each – it is 15 up to 100 minutes.