Keeping detailed records of all conversations, decisions, and documents will help you keep track of your relationship with your broker and back up your case in the event anything goes wrong.
It’s a good idea to keep a log of all conversations, noting what you’ve discussed. You might even want to send an email or note confirming what was said and any decisions made or instructions given, and keep copies of it. You should keep these notes as you go along, since they’ll be more credible and more accurate that way than if you simply tried to recall conversations after the fact.
If your broker sends clippings, research reports, or other investment information, review them thoroughly before filing them away for safekeeping. And whenever you get your statement or confirmations of transactions, it’s important to read them carefully. The faster you catch a mistake, the easier it tends to be to correct.
Be wary
of any broker who:
Guarantees you’re going to make a lot of money Advises you to put all of your money in one investment Argues with you or ignores your instructions Is vague about the amount of commission or fees he or she will earn Asks you to sign any documents you haven’t fully read or don’t fully understand
