Acting Against Recommendations

  

Categories: Trading, Ethics/Morals

Let's say you head to the emergency room with stomach pains. The doc in charge says, "Yep, you've got appendicitis. But I'm brutally tired, so...I recommend you go home." Odds are, if the doc himself had appendicitis, he'd get someone to take that puppy out, stat.

Acting Against Recommendations is kind like that—just in the financial world. If your broker tells you to do something he wouldn't recommend for his own investments, he has a duty to tell you that he wouldn't do that same thing in his own case.

Why would anyone act against recommendations? Well, in the case of the doc, maybe he is so tired that he's a dangerous menace in the O.R. In the case of the broker, maybe there's something about your specific situation that makes acting against recommendation the way to go. As long as they tell you, it's totally legit.

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