No. of Recommendations: 8
When I first started investing in stocks other they stocks in companies that I worked for. I opened an account with one of the "Show me the money" brokers. I hadn't found the Fool yet. After talking to the first available broker, she suggested I open an IRA account and a cash account. Which I did. I deposited my 401k rollover from a company that I had just left into the IRA and the cash account set empty.

My broker recommended a BIO/MED stock that her firm was big on. She said that she had ask a doctor friend about the stock and he thought the company was doing great things. The broker showed me the report the firm put together on the company and explained things to me, in terms I really did not understand. She made a great sells pitch.

So, I took part my funds and bought the stock at $12 a share and $40 in commissions, I was the proud owner of 70 shares of this wonderful stock. After my broker had placed the order, I sat cross from her smiling at the thought of buying my first stock on my own. Well, with a brokers help.

As we chatted she said the analyst suggested selling the stock at $13 a share. I say OK and did not give it much thought. As she walked me to her office door she congratulated me on buying that first stock.

A couple on days later she call to say that stock was at 12 3/4 and it looked like it would go over $13. She said that she would call me later when it was time to sell. As I hung up the phone I went out on the Internet and was looking at the stock price thinking I was going to make a few buck. "BAM" Then it hit me. I own 70 share of this stock, my commission for buying it was $40, my commission for selling it was going to be $40. If I sold it at $13 that would be a $70 profit, less the $80 in commission. I just LOST $10.

The stock never hit $13. In fact, over the next few weeks it dropped below $12. I watched the drop to $10 - $9 - $8. A year later the stock was under $5.

Then I found the Fool. I transferred all my stock to a discount broker and I sold that stock at $3 7/16 just before it reversed split.

To this day I still receive mail for the "Show me the money and Pay my commissions" broker. I have not returned her calls or responded to their surveys.

I guess I learned a lesson the hard way.

Oh, by the way. My broker is now a VP at her firm. I guess I wasn't the only sucker.

Fool on,
Andy B.
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