Hi - bellow the link for all chapters....
Chapter 6 – 7 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-6-and-7.html
Chapter 8 – END http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-8-end.html
This post has been written as a letter from me to you! I am writing as I process things in my mind. No spelling checks, no grammar, or proper sentence structuring was applied. I actually have not proofread my posts. It is just a personal message. Ha muitos posts em PORTUGUÊS mas também uma opção para traduzir. (posts in Portuguese can be translated) - I am not making any money with this Blog. I do not require anyone to follow.
About Me - Milton Laene Araujo
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- Milton Laene Araujo
- Lake Worth, Florida, United States
- My name is Milton and I am a reader. I love to feed my mind with what if’s?, through stories.
Showing posts with label Livro de Commodities. Show all posts
Showing posts with label Livro de Commodities. Show all posts
8/10/13
The commodity Broker - Link to all chapters - By Milton Laene Araujo
Hi - bellow the link for all chapters....
8/08/13
The Commodity Broker Chapter 8 END
The Commodity Broker Chapter 8 and Final
Chapter -8
October, November
and December of 2007 were three good months for commodity investors. Most
clients made their money back, except for those which were told to re-invest.
Sofia’s customers were happy, and Paul made sure that a follow up call would be
made to them asking for their return, once Sofia was not part of the business.
NFA demanded
Stonegate to close its doors in March 10th 2008, and all opened accounts were
transferred to another firm – Friends with Paul. The game continued, and in
less than a year later, that company was forced to close due to same
problems. The principal of the new
company gave Paul a percentage of the commission, and most employees lost their
job. By July 2008 Paul opened a business
to trade metals (an item that is not regulated by NFA), and hired back all his
friends, and sooner than one year, that firm was closed down due to the same
problems, but this time, some customers received compensation.
As of 2009, Diva
moved in with Paul and helped to run Paul’s new adventure on Insurance
business. The business, yet regulated by various agencies, leave room for lies
and sale of medical insurances without offering the benefits promised at first.
It is another business that needs regulation and close supervision. People are
buying Medical Insurance to learn later that it covers almost nothing. Paul kept on lying to people and Diva was his
secretary and part time lover.
********************
Chapter 1 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-1.html
Chapter 2 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-2.html
Chapter 6 – 7 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-6-and-7.html
The Commodity Broker Chapter 6 and 7
The Commodity Broker By Milton Laene Araujo
Chapter 6 –
Sofia learned
about the commodity business, and very soon she was aware of all complications
related to this business. She visited NFA site constantly to check on up-dates.
She was not sure if she was made-up for this business. Money was very good,
actually, too good to be true. She had made at least $25,000 in commissions in
only two and half months. In December Stonegate was forbidden to charge more
than $100 per trade in commission, and Paul saw this as a sign that something
bad was about to happen. Once well informed about her position within the
company, Sofia changed her ways of dealing with her boss, Paul.
“Sofia, you are
killing me!” You have all these money sitting on customer’s account and you do
not place them in the market. What the fuck are you waiting for? You could have
made at least 50 trades this week, but no, you want to wait…what is wrong with
you? I used to like you better, when you just started, but now you are
affecting my business, and this is my company.
“Paul, I am a
broker, therefore I am sharing with you 50% of my profits, while you give me an
office to do my job. Your job is to make sure I have all the material needed to
do my sales, and you are doing a great job with that. But please, do not think
that I am handing over my customers to Peter or Steve just because you do
business this way. It is against the
regulation to transfer customers to anyone inside the firm, especially when
that someone has lost his license and is under investigation. I am liable to
whatever happens to my client’s money. You are not. As a matter of fact, Paul,
you shouldn’t even be here. I read that you are suspended, but you come in here
and boss everyone’s around as if this is a pizza place. We are talking about
investment Paul. We are talking about good faith. I will not allow you to touch
my book, whether I am here or not, and it is BS that the client belongs to you.
They are my clients because I am licensed to deal with them. You can make
Victor, Diva and everybody else hand their clients over for you to do the
trades behind closed door, but not with my clients.”
“How dare you
talk to me this way? I helped you when you needed a job. I gave you money and a
nice office, and now you turn against me?” Paul said to Sofia and to everyone
who stopped doing whatever they were doing while participating the fight. No
one dared to interrupt them. Sofia was showing her tough self, and for Paul it
was an aberration. Not only for Paul. Everyone was afraid for Sofia, but no one
showed any inclination.
“I am telling you
Pal, that I am a licensed Broker who passed the Series 3 exam, and I am well
aware of your ring of wrongdoings with many companies you had in the past. Chad
is suspended; yet, he is not taking calls or touching the phone as you are. He
does mostly electrical job in here. You, on the other hand, got your brother to
be the boss, knowingly that you would deal the cards your own way, screwing
everyone who sent you money, simply for the fact of getting a new Mercedes
every year or a new apartment. How much did you say your net worth is? Last
time you said that you had over 10 million dollars and you can stop working and
retire…remember? Well, this is because you are stealing form people. You have
your team of tainted licensed guys who cannot go anywhere. They belong to you.
They have no other skills. I am sorry to say all this out loud, but it is true
Paul. You only care about money! You hire anyone just to have the necessary
brokers to cover up for those tainted ones. How many times I heard you say that
Victor was not good, yet you never told him that, or fired him, for that
matter. You need new brokers to balance the bad ones. It is illegal Paul! Yes,
I am a fucking dike…isn’t what you tell everyone? It doesn’t bother me at all.
I knew it first, and if you had a drop of dignity, you would not even try to
approach me with presents or whatever you do to get women in your bed. I am
tired of you, this business and everything related to it...not because of the
business, but because of people like you! How dare you bring Frank to give us a
speech, when Frank was the main reason a movie called “The Boiler Room” was
created. Frank was recently released from jail and you invited him to come here
and talk to us about leads etc. A guy who put his mother in jail… yes, his brother and his wife were incarcerated due
to his wrongdoings. I read about him! I
read about you! You are in the same path. Next one to go to jail will be your
brother…just because of you!
“You are fired
Sofia.” Get the hell out of my face
“Not so fast
Paul! I have a clientele and I need to let them know that I am no longer in
this business, but not because you are firing me! Oh No. You cannot fire me!
Your name is not in any legal document pertaining to this firm. You are here,
but you are no one. And as far as NFA is concerned, you shouldn’t be in here. I
am going to pay them a call, if not a visit to Chicago and expose you, and the
reasons you are firing me. Is it what you want me to do? Be careful, because if
I call them I will expose you, your brother and everyone involved. Ask me if I
care?”
“Let’s go to the
lounge Sofia.” Paul said feeling that he shouldn’t have messed with her.
“I don’t want to
go to the Lounge. You refer to me as that bitching dike, low life pig,
etc…well, now I want you to hear what I have to say. Not you or your money will
turn me into a robber. You can do whatever with them, but not with me. I do not
want complications with you because it is not worth it. I want time to close my
clients account, and when my book is finished, I will then leave, on my own. Do
not ever threat me with security, because if there is one here who is
trespassing, this one is you Paul.
“This got blown
out of proportion. I am sorry Sofia. We need to talk.”
“Yes, we will
talk tomorrow, when I return. I am taking the entire day off, and I will return
tomorrow to check on my client’s contracts and see which one can be sold – but
I will not hurry! I will do it properly. Please, stay away from me! Looking at
you I can barely sustain the presence of vomit that rises to my throat.
Sofia walks out
of the office with her book and goes home.
Diva comes to her rescue, after making sure no one would see her.
“Sofia, my Gosh, you told him off.”
“Diva, I am from
another country, and English is not my primary language, but I know when
someone is cheating. Paul is this type of person. I just hope you take him out
of your system, as you should.”
“I always knew
that this type of job requires thick skin Sofia. What I mean is, everyone is
doing the same thing as Paul. Don’t you know that he has no education, except
this business, and this is his life! He loves his job and he wants to be
involved.”
“Diva, you are
only 21 years old. I am forty! I have been in sales all my life, but I have never
lied to a client or a customer about my intentions. No one needs thick skin!
Everyone needs to treat others as you like to be treated. Paul is an asshole.
He pretends to be something he is not. I truly feel bad, but he shouldn’t have
approached me with that tone, and tell me to give all my customers to a Loader.
“I know, he asked
me to talk to you about that.”
“You see it Diva?
He is working on you to change me.” How Lame. Did he ever care to tell you when
you were hired that your license would be tainted? Does he actually tell his
employees that they are signing up for a firm under investigation, and that all
his employees were with him before, doing the same thing? No, he hires new
people, give them $500 for passing the test, and make them all a telemarketer.
Chapter 7 –
December / January 2007
Jonathan Rolls
from Missouri, a married man of the age of 37, with a net worth of $ 1,000.000
removed $20,000 from mutual funds to invest in Options. On December 21st, 2007 he received
a check of $21,326.00 from TRUSTCOM. He still has 5 open contracts on Crude Oil
and 2 contracts on Euro currency.
Robert Bowen from
Indiana, a married man of the age of 60, with a net worth of $1,000.000
received a check of $ $10,026.00 on December 20th of 2007 from
TRUSTCOM. He still has 5 open contracts on crude oil and 2 contracts on Euro
currency.
Robert Jenkins
left his money in the market and his account was transferred to Peter. As of
now he has $47,000 sitting on his account and 25 positions on Crude Oil and 10
Positions on Heating Oil. He doubled his money in less than a month. He was
going to send $50,000 more to invest, but he was told to stop sending money for
now.
Barbara Lee
Johnston, a widow form Virginia, age 55, with a retirement account only. She is
very religious. She had a boyfriend called Milton who passed away. She works as
a volunteer. Her initial Investment was $3,000 and she received a check for
$3,250.00 on December 20th, 2007. Mrs. Johnston wanted to re-invest,
but was glad to receive the check before Christmas. She has 4 contracts on
Crude Oil and probably will double her money. She said that she will forget
about this position and let God do his work.
Stephen Lee from
Colorado, a married military man with an undisclosed net worth lost $3,000
Keith Douglas
from Texas, a married man of 53 lost $10,000. His current broker is Cindy –
Cindy called him back after he closed his account and invited him to return.
Bob Fitzgerald
Hughes from New Jersey invested $5,000 and received a check for $5,135.00 on
December 23rd 2007. Mr. Hughes re-invested his profit with a
different company. As of now he has 4 contracts on Crude Oil with Sofia.
Terry Casanovas
Brown from Canada, a married man of 49 invested $5,000 and received a check for
$5,230.00 on December 17th 2007. Terry still has 4 contracts on
Crude oil and 2 contracts on Soybeans.
Gerald F Simba
from Canada, a married man of 50 invested $50,000 initially and now holds 48
contracts on Crude Oil. Simba refused
the return check and re-invested his profit. Now he holds a variety of
contracts in varieties of commodities. Gerald does his own recommendation, and
he puts money into his account as he see fit. Currently he is working with
Peter.
Joseph Smith from
Canada, married with 3 children received a check for $20,116.00 and closed his
account. His initial investment was $9,375.00. He made all his money with Crude
Oil
Francisco Herald
from California, a widower, age 89 Invested $10,000 and received a check for
$11,236.00 on December 19, 2007. Mr.
Herald has 7 positions on Crude Oil and 2 positions on heating oil that will
expire in March 2008.
Jorge Blair from
Texas invested $10,000. Currently he has 20 contracts on Crude Oil and $10,000
sitting on his account. He received a check for $5,000.00 and wired it back into
his account.
Christopher Norby
from Indiana, a married man of the age of 43, with a net worth of $5,000.000 Invested
$50,000 and holds over 120 positions. He is currently working with Cindy. He
has $46,000 sitting on his account.
As of December 23rd
2007 Sofia has $ 109,356.13 sitting on the sidelines. This money belongs to her
customer. She is waiting for an opportunity to place them back into the market.
As of December 23rd
2007 Sofia returned $ 81,419 to her customers.
Chapter 1 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-1.html
Chapter 2 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-2.html
Chapter 6 – 7 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-6-and-7.html
The Commodity Broker Chapter 5
The Commodity Broker Chapter 5 By Milton Laene Araujo
Chapter 5- November
2007
Paul started the
Meeting at 8:30 Am
“We had a very nice October. We opened 50 new accounts and
we did over 750 trades…I am very pleased with everyone’s performance. I want
you all to put your hands together for Nikisha who just passed the test…clap, clap, clap… and for Cindy, who
besides her great job making money for all of you is responsible in helping you
with the material for the exam. Clap,
clap, clap, ….Nikisha, I want you to
spend the day watching everyone. I want Chad to stay with you the entire time
helping you with your calls… It’s very important that you know what we call…
INTEGRAL to success… You must dress for success…Look at Victor! He looks very
sharp today…We only work five days per week and only two evenings…Tuesday and Thursday
evenings we just work for three hours. Arriving on time is key and you must
have at least two solid fronts per day…WITHOUT EXCUSES!! What I mean by front
is complete information of the prospect, from suitability to financial
information. I don’t want you to copy from the lead and pretend to be your
front! Keep sick days to one per month average…MAX. Make your personal
appointments during non-office hours. Maintain a quota on new business – ASK
your employer their expectation. Treat your fellow employees with respect…Treat
clients with respect, honesty and integrity…”
And Paul goes on…
“Now… I want to talk
about Bad Ideas for Success in Sales… Lack of focus – Do what you are being
trained to do. First be successful, and then you may try to innovate or create
a plan…Like I said…Lateness or Absences –Sure fire away to fail in Sales!
Excuses…there is NO EXCUSE. EVER! Everything is ALWAYS your fault…missing training
meetings – You can never learn enough…Social Selling –The clients are not our
friends. The brokers around you are NOT your friends. You are there to make
money. There is no place to act like a clown, horseplay or practical jokes…”
And Paul goes on…
“Pay attention to where you work…The place you chose to work
is the most important decision you will make in your sales career. Once you
make the decision to work in a particular place you should commit 100%.
Shopping deals, nosing around your industry and keeping “FRIENDS” at other competing
firms will make you an outsider and keep you there. Mercenaries (a slang term
for a hired gun broker) are only as good as their last month commission and
rarely up the food chain…
Paul spits his chewing gum in the trash and takes a zip of
water… He goes on.
“Like I said…A Mercenary Broker is a personal opportunist
that will change firms, steal brokers and otherwise conduct underhanded actions
for personal benefits. Mercenary brokers are easily spotted. They have a lot of
“friends” at other firms and try to force relationships with entry level
brokers everywhere. They always have a joke or anecdotal comment for various
aspects of the business. They “share secrets” and otherwise try to get others
to believe that they are inside. They have the “illusion: of wealth (maybe a
leased Mercedes or BMW) and a lot of industry experience, but no significant
net worth commensurate with their time in the industry.”
Paul takes a break, looks around the room to see who is
missing…Looks at Jose Roberto…who reads his mind and gesticulates that the
person in question is using the telephone. He goes on…
“Like I said…The firm had better have the money to pay you
on pay day or all your hard work was for nothing. It’s extremely and
unfortunate common for brokers to get screwed out of their paychecks. Get this
straight.”…Another zip of water…”Get this straight right now; there is no story
or excuse for you not getting your pay check. If the boss breaks his leg on his
way to the office on payday he should crawl to the office and hand out the
checks. There is no excuse in the world that excuses no CHECKS. If you ever
don’t get a check (a check you actually deserve) you should run and get another
job.”
Only 12 minutes have passed. Paul walks around the room
while talking.
“Of equal importance is professionalism. The firm for which
you work will be a reflection of the owners and managers. If they act like
slobs, you can expect to become a slob. If they underhand things to others,
they are already doing it to you. You may not realize it yet, but you will
eventually. Observe this…Like I said… here a dead tips offs for unprofessional
firms to avid…Owners and managers talk negatively about each other; Owner
family members’ all over the firm in various positions; Management uses the
firm as a Dating Pool; married owners or managers who lie or cheat on their
spouses; secretive managers or owners; firms with large turnover rates; Dirty
Firms, or Un kept firms…Make sure you clean your desk with Windex every-day
before you leave!”
Paul stops talking and a tall man walks in the office.
“I want to introduce to you a good friend of mine. His name
is Santé di Franky. He will share some valued information with you…”
“Hi, Everyone…Paul and I go a long way. We used to work
together before we became good friends… But what I want to talk about is
Leads…when I was in the business I heard it every day: The leads are weak; the
leads are weak? You are weak! …It’s not me… it’s the leads…they suck! If the
leads were better, then I could open accounts; nobody can make money with these
leads; Look, I am a great broker, so when I have no accounts then you know it’s
the leads…and so forth and so on…Here is the deal, most good companies get the
same leads. In fact they get the same leads from the same places, purchased or
generated from the same people. Think about it, if ABC Company found some new
and exciting way of generating these amazing leads that “Virtually closed
themselves”…wouldn’t everybody just copy it?...A good lead is the one where you
get the prospect to listen. The more carefully they listen the better the
broker…Now imagine you found a phone number on the floor in the deli while were
buying lunch. You called it. A man picked up the phone and answered hello and
you just started by saying… Hi, this is Santé at ABC Company. Who am I speaking
with?” He responds with the name Bill. Bill I am glad I got a hold of you
today. The reason for my call is… Now imagine that guy made a monster purchase
or opened a huge account with you. Wasn’t that a great lead? This happened with
me! Remember, you are in a sales business where leads are provided to you! You
see different names every day! Be assured you are getting a quality lead. Since
you should expect to make 150 to 250 dials per day you will need about 35 leads
per day…due to call backs, left messages and no answers which need to be
recalled at later times.
“Clap, clap, clap…”
Paul returns to the floor.
“We have a program that states how many calls each one of
you made from the telephone that you are using…every day! I posted it on the
board along with your name…you can check this after 3:00 PM…But I see here that
Diva only made 52 calls yesterday while Milton made 107 calls yesterday… Cindy
made exactly 150 and Victor made the most…200 calls. I know who is working and
who is not working!...Also on the same board you can see the number of accounts
opened and each respective broker…Milton opened seven accounts last Month…If he
keeps up he will have a great paycheck next week…I want to take this last
minute to call to the floor Peter …who made $65000 for himself last month and
give him this gold Rolex watch for his services. Peter we appreciate you! The
meeting is adjourned.”
At this time everyone returns to their post.
“Hey Sofia, I need to speak with you.” Diva said to Sofia.
“Hi Diva,…sure. Can we leave here today at 3PM and skip gym?
Would you come to the bank with me? They have an agency in Boca Raton. I need
to make this deposit yesterday”.
“How much is your paycheck Sofia”
“Mine is $3700 this week and yours Diva?”
“Mine is $6400…it could have been $12,000 but I had to split
with Peter. Well, Peter is very nice actually, because I wouldn’t have made
anything by myself…He is the one who got the client to send an extra $50,000…I
thought you would make one million by now…”
“Maybe next week it will be better for me. I just put Mr. Jenkins
in the market yesterday.”
“Yesterday? Why? You opened his account last month Sofi.
Maybe you should ask Peter to help you.”
“That’s what Paul tells me, but I am reluctant…I will think
about it…See you later.”
… ((A CALL HOLDING ON LINE 2, SOFIA HAS A CALL HOLDING ON
LINE 2))
“Damn speakers!”
“Good morning, this is Sofia”
“Good Morning Sofia, Bob Bowen here”
“Bob!!! How is Indiana this morning?
“It is in the same place Sofia”
“Bob, we have a birthday coming, don’t we?”
“Not for a couple of weeks Sofia…how do you remember?”
“I have it written here on my calendar. Plus I have a sister
born on the same date. No brainer.”
“The reason I am calling is that I don’t know how to answer
on question on my application.” Bob said to Sofia.
“What application bob”…don’t tell me that you are going to
be my client?”
“Off course Sofia….Who
wouldn’t? I mean, you explained the risk more than the profits. I decided to
gamble, and you are my casino.”
“Very funny! What is the question Bob?”
“On the individual information form… middle of the page…What
is your investment purpose in opening the account? I am not sure if the answer
is Speculation or Hedging.”
“It’s Speculation Bob.”
“OK. I get it. What is your expected trading pattern? Here
it says, Futures, Options or Both”
“The answer for that one is Options, Bob.”
“Got it…Why can’t a put both?”
“Because you are opening an account with an Introducing Broker (IB), which is my firm. An IB is an individual or organization that
solicits or accepts orders to buy or sell options, but does not accept money or other assets
from customers to support such orders. As you can see your money is not coming
to my company, or under my company’s name. It is directed to the FCM who is
above us. I will carry your account with a FCM on a fully disclosed basis… they
are our guarantor.
“OK. Whatever.”
“This is actually
for your protection Bob. In case something happens to our company, you have
your asset with a larger company that operates like a bank. I am working in
your behalf with such a company. There are others FCM’s out there. I call them
mother companies! Some FCM just like to deal with a few commodities, while
larger FCM’s deal with other or even all commodities. As your Broker I will use
a different FCM only if we decide to invest into something our FCM of use
doesn’t carry. It sounds complicated, but it is just that small firms cannot be
receiving checks from clients… This is serious business Bob.”
“I get it Sofia.
Is there anything you don’t know?”
“Is that a
compliment Bob?”
“Yeah, I mean…Here
I am filling out papers and I do not see your company’s name on this form, but
a TRUSTCOM something…”
“Right, this is
our FCM, and you will receive your statements under that name.”
“Why am I going
through you then?”
“A FCM doesn’t
deal with clients directly. They deal with IB firms like mine. So, one FCM
could serve all IB’s in one state. I however deal with you directly and I am
under the FCM”
“What does it
stand for?”
“Now you are
pushing it Bob...Just kidding. It means Futures Commissions Merchant.
..Remember when we talked about futures and the difference with Options, being
that futures have unlimited loss potential, while with options you only can
lose what you invest? Well, my firm deals with options because we do not want
to be calling you to make a deposit every time the price takes a turn against
what we aimed. It is safer to know that you can lose only what you have
invested, but I recommend that you read about futures to see if it is something
you would like to do in the future.”
“I have to go Sofia.
FedEx is coming here in half an hour and I want to have this envelop signed
sealed delivered…I am yours!”
“Great Bob… How much are you sending?”
“I was going to
send $15,000 to start, but I changed my mind and made the check for $5,000.”
“Should I send
more?”
“NO PLEASE! Let’s
do baby steps Bob. If I am good I will make $5,000 for you this month, and I
want to send it back to you! I feel better to play with the profit you made.
Imagine you spending $5,000 and receiving it back and still have $5,000. This
way if I tell you to buy sugar options instead of cotton, you will listen to
me.”
“Can you just
like… do whatever you want with my money and call me to tell me what I have?
“Yes Bob. I can,
but only two years from tomorrow. You see…this is the dream of everyone who has
money to play. They have money but they do not have time or the desire to be in
front of a computer screen all day checking if it is the right time to get out
of the market or re-enter. This is my job…I am your ears and eyes with the
market, and two years from now I will obtain a power of attorney from you
giving me this right. You need to get to know me better…any broker for that
matter…”
“Oh, like my
stock broker?”
“No. Your stock
broker calls you when he makes change to your account or moves you to a
different market as well. You don’t hear from him very much because you must be
involved in mutual funds, retirement accounts. It is less risky Bob. What we
are doing now, I mean, what we are going to do is very risky. Your money can go
away the day after, but if the market bounces back and rallies you are back in
the game, yet, you won’t lose more than what you invested.”
“That is fair.”
“Bob, I have another call on hold. I will call you tomorrow to
let you know
whether I received your application or not.”
“Thanks Sofia.
Good bye.”
“You are welcome,
Bob. Good bye.”
“Click.”
“Hi, this is Sofia”
“Hi Sofia this is
Bob Jenkins”
“Hi Mr. Jenkins,
I see you are up early today”.
“I got a message
to contact you.”
“Yes, you did. I
asked Marta to call you for me, but I did not expect her to call you while I
was on the other line.”
“She didn’t. She
located me and asked me if I was going to stay around in the next fifteen
minutes or so. I wanted to know what is going on and I didn’t want to wait.”
“Good. I see here
that your 10 positions on Crude Oil are with a profit around 35% and I want to
get rid of it and enter right back in with another 10 positions.”
“Why not 14?”
“Mr. Jenkins, I
want to leave the remaining on your account to try a different market later. I
have a feeling that sugar is going up in the next week or so. I was reading an
article that coca cola is going au natural. I also read an article about an
increase of ethanol in our gasoline, which means price of corn also going up,
as well as sugar. Russia makes ethanol with beets, but Brazil makes ethanol
with sugar cane. The price of sugar will go up if we have a hurricane in the
Caribe…”
“OK”
“Mr. Jenkins, I
am going to transfer you to (compliances) and they will record your voice. You
will authorize the sale of 10 Contracts. Hang in there please…Ah, and within 30
minutes I am going to spend all the remaining of your investment into other
commodities, I am not sure yet, but I will call you to let you know.”
“OK.”
“Click.”
“Hi this is Sofia”
“Sofia! Jonathan
Rolls here”
“Hi my friend
from Missouri. How is the weather there?”
“It is insane Sofia.
We had a tornado last week. Thank God, we are fine, but the city is not so
well.”
“I guess, you’re
going to work even harder to fix the power lines and the electrical damages.”
“I am.”
“Good. More money
for us to invest… So, how may I help you Jonathan?”
“I have mailed to
you my account information yesterday. I have the FedEx tracking number right
here, would you like it?”
“We got it
delivered to us fifteen minutes ago”
“Oh, Good… I have signed a transfer authorization form
for you to handle my positions with a different firm. I have 27 contracts on orange
juice, and the guy said that it is deteriorating…I think I am going to lose it
all”.
“Whose idea was
to get into OJ?”
“His idea and it
sounded good…I had heating oil and crude oil, but he sold it three days later
with profit. And now I only have OJ with them. I prefer to transfer to you
because the guy is an asshole and he wants more money from me.”
“How much money
are you sending to me Jonathan?”
“I can only send
$10,000. I’ve sent him $20.000”
Chapter 1 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-1.html
Chapter 2 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-2.html
Chapter 6 – 7 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-6-and-7.html
“That is good,
but you should‘ve sent me $5,000. I will not re- invest your profit… we will
play with your $10,000 until the end. If we get out with profit, we will put it
aside. Understand?”
“Click”
The Commodity Broker Chapter 4 -
The Commodity Broker Chapter 4 -
By, Milton Laene Araujo
By, Milton Laene Araujo
Chapter 4 – One week later
Things were changing in a very fast pace for Sofia. One day
after the arrival of Mr. Jenkins account information, along with a check for
$40,000 Paul couldn’t be happier with the results. He called Sofia aside to
have a chat.
“I want to talk with you”
“OK. Go ahead”
“No, not in here, follow me… I prefer to talk with you in
this room because no one can hear us”
“OK…did I do anything wrong?”
“Gosh .No… You are doing a great job. I just wanted to hand
you this cash in appreciation for your performance. You are very good. Chad
said that you are the best on the phone. I don’t want you to be in the small
room anymore… Diva is still learning, Victor doesn’t have any discipline, or he
is just not interested. I cannot fire
him because he just got his license, but I think he just works for his $300
weekly check. They are a fine crew, don’t get me wrong, but I just think that
you surpass them, and I don’t want them to influence you, or affect you in any
ways.”
“Geez…This is so cool Paul …I was broke. This will help Jackie
and I to pay for the mortgage installment. She has been taking this burden by herself
for so long.”
“You do not have to worry about money Sofia…Ever…You will
make tons of money here, besides, everybody likes you!” Is there anything I can
do to help you?
“I have to work hard and make calls…and I am having some
problems with a few prospects’”
“What type of problem? You can always tell me, I am here to
help you”
“I sense that they do not have the money to invest, but it
sounds too good for them and they want to get involved.”
“What is wrong with that?” …what is wrong with
that...Who needs to know…And here I go! Again and again…
“Well, Nothing really, but they can’t afford the risk and I
don’t want to take food off their tables, just because I have a recommendation
and they believe me…I sometimes wonder if I believe it.”
“That’s why you have to qualify them first Sofia.”
“I know… I know… I prefer to get their attention first and
then dig into their financial situation”.
“Well, that explains it… But I prefer that you have five
millionaire clients fifty 5K type. Those cheap bastards just bring trouble…Oh,
before I forget…let me show you your new office...You can move anytime…This
evening, there is.”
The office was magnificent. There was an “L” shape mahogany
desk in the corner bellow the window with view to the Atlantic Ocean, instead
of Atlantic Boulevard, a leather chair that enveloped an entire body. It was
state of the art. It could be locked from inside. A set of key was handed to
Sofia.
“This is very nice Paul”
I know… This office was in dispute between Peter and Steve.
They both wanted to move in here, but I decided to let them where they are.
When things are good we don’t change. Well, this is for you.”
“I wonder why you have chairs, considering that you do not
like anyone to be seated”
“Don’t be funny Sophia! It is true…I think …I know for a
fact, that when you are standing your voice comes out better that when you are
seated. I mean everybody’s. As you can see, everyone is walking all over this
floor while talking on their phone. You don’t see anyone sitting and
talking…well, except for Victor, but he is a child.”
“Yes, I met Victor. He is a sweet guy…how old is he anyway?”
“He just turned 19. He is a high school dropout”
“How did he pass the test?”
“He was lucky! Cindy said that he wouldn’t pass the test.
She was his tutor…but then again…Cindy said that Diva wouldn’t ever pass the
test and she passed on her first trial.”
“Hum…what does she know?”
“True…Sofia…Patrick said that you were a waste of time. I
almost got rid of you last week.”
“Patrick said that? Geez…I was working with him for only one
day…my first day actually, and he seemed to be so nice! I little weird, but
nice!”
“Yeah… He is no longer here. He left…Patrick is that type of
broker who works in every company he can lay a job. After his zero production
is recognized he either leaves or he gets fired. This time he left on his own
will.”
“Wow.”
“OK Sofia, at night you move in. Let’s get back to work”.
Sofia left her office ‘to be’ and walked through the entire
third floor observing everything. It was her first complete glance into the
office. She only knew the conference room, the big lounge where no one ever
used, but it was there, in case some unexpected visit from regulators submerged
before Paul was informed by his contacts. She got $1000 bonus and it was not
even Christmas. She couldn’t wait to get home and tell Jackie. She would get
home at 9:00PM. Enough time to have a martini with Jackie to celebrate the day.
“Chad…thanks so much for making that room so elegant for me.
I see that it had your prints all over it. New pictures, more monitors than I
can use and even a private telephone line. I didn’t see any recording device in
there. Did you forget it?”
“No Sofia, We only used the tape recorder once, after
Patrick left and said that you were not good!”
“Thanks for sharing it with me Chad, but Paul already said
that.”
“Really?... He rarely talks with anyone in here. Maybe he
likes you!”
Please, tell him to keep his expectation down to zero. He is
not MT.”
“What is MT Sophia?”
“My type.”
Diva was walking around, talking on her phone with her
British accent… louder now that she saw Sofia.
“You are telling me that you are busy Mrs. Lip sheet? We are
all bloody busy aren’t we?...Why don’t you go to hell…”
“DIVA… what are you saying?”
“He, he,he, he…I was just kidding…I have no one on the line”
“Gosh Diva, you sound like me when I get mad.”
“What happened? I mean, what Paul wanted with you?”
“My body”
“What body…he, he, he…you don’t have one, plus everyone said
that you play on another team
“You are a witch, you know?”
“He,he,he…you are so estupida!
“Paul wanted to talk with me, tell me how much he loves me
and how much he wants me, but he knows that I am a woman of only one woman, so
he told me that he will be my second choice.”
“Come on Sofi ! He, he, he…Don’t make me laugh or I will pee
on my panties.”
“You don’t have one, remember. I kept it last night.”
“Stop… I can’t take it anymore… I wanted to make you laugh,
and look at me…I am a mess…He,he.he. You are so funny!
“Paul wanted to give me money and tell me that I got a new
office. The empty one on the corner.”
“Money?...Office?”
“Yes, he told me to stay away from all of you in this room.
He said that I need only positive energy.”
“He said all that?”
“No, silly. Well, not the way I am saying, but he wants me
to concentrate on my calls, have enough equipment to guide customers to sites…I
guess, he wants me all for himself.”
“Paul has a sweet side on him.”
“Are you in love with him Diva? I mean, have you guys…? I
have noticed that you come to work dressed so nicely, especially lately! What
is going on between you two?”
“Last Wednesday, when we all went out for a drink, and you
declined the invitation, remember? Well, we all went to Pauls’ apartment for a
drink
“How is it? Is it big? Where is it?
“It is very nice. Small, It is only one big room with a bed
on one corner and the bathroom nearby…A large kitchen and a gigantic living
area.”
“I suppose you enjoyed the bed part of it.”
“Yes, he was so gentle! We made love passionately! He talked with me.
He treated me so well.”
“But Diva, I heard he has a girlfriend. She works at Nordstrom,
in the Gardens Mall.”
“I know, but he doesn’t love her”
“I can’t believe you went to bed with him already…Don’t you
know that you cannot go to bed with your boss? I mean, this is crazy. How can
you conciliate working and dating the boss?”
“I didn’t think about that yet! But I waited until he got
rid on Cindy and I went back to his apartment the same night. He knew I was
coming back. The way he looked at me. But that Cindy bitch didn’t leave him
alone. I hate her, and she is so ugly!”
“Let’s stop all this Diva…Let’s talk later. Let’s go to the
gym after here. I pay.”
“Silly…Paul has already paid everyone’s membership…Look Chad
is coming…Just pretend you are on the phone… and keep walking. No one will know
the difference.”
Chapter 1 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-1.html
Chapter 2 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-2.html
Chapter 6 – 7 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-6-and-7.html
The Commodity Broker - Chapter 3
The Commodity Broker By Milton Laene Araujo
Chapter 3 -
Chapter 3 -
Chapter 3 –
The call to Mr. Jenkins was a mess! Sofia followed instructions
but the customer did not buy it! Meanwhile, Paul Jalil was walking all over the
place, trying to find a way to reprimand Sofia for not passing the call to
another broker.
During this call to Mr. Jenkins, the entire crew in the
office stopped working for a few minutes to hear the conversation Sofia had
with Mr. Jenkins. The speaker phone was on.
Jose Roberto Jalil, the owner of Stonegate Financial
Services wanted to interfere or even pass the call to a senior broker. He was
certain that Sofia would lose that prospect.
But when he approached her, during the call, he made many faces and
movements telling Sofia to place the client on hold, but she ignored him
completely.
“Sofia, I was right here by your side, asking you to place
the call on hold, why didn’t you do it?”
“I am sorry Jose Roberto, but when I am on the phone I
ignore everyone and everything.”
“That is not good Sofia. We work as a team here, and one
helps the other”
“I thought I had control of that call.” Sofia said. .
“But you didn’t! He is gone, isn’t he?”
“Please, take it easy Roberto. Mr. Jenkins was about to have
lunch. We didn’t finish our conversation because his wife was calling him. I
heard her on the background, besides he will call me back, and if he doesn’t,
he is not interested.”
“Sofia, no one calls anyone back”. Haven’t you learned your
rebuttals? I guess we need to place you on training. I am going to ask Chad to
supervise every call you make.
It was lunch hour. The secretary ordered Italian food for everyone.
The buffet was at the conference room. There were breads, Tortellini with white
and red sauce, Chicken-lettuce –and-tomatoes wraps, antipasto salad and garden
salad. Everyone got their customary seats. Sofia was on her desk checking the
NFA web site when Diva Arrived.
“Hi Sofi, let’s grab something to eat. The meeting is about
to start and you know how Paul gets when someone is missing”.
“I know. I am preparing myself to be chewed up again.”
“Don’t stress over it. Paul is sort of bi-polar, a good
looking one, so I don’t listen to him, I just look at him.”
“Then, let’s go.”
One thing human and good about Paul is that he provides food
to all employees during lunch and dinner. No one needs to go out of the office, and
lunch was limited to half an hour, which included a meeting while everyone ate
and a sermon from his Paul whenever he felt like talking his elbow off. His
reason is simple. Keep the entire force inside the office, for it is cheaper.
“Lunch has been served.”
Said Paul and went on and one while holding a microphone.
“You can eat a quick lunch between 12-12:30 pm. No eating at
any other time during working hours. Be positive at all times and always respect
your co-workers, clients and yourself. Maintain a high-energy level. Stand up!
Be passionate with your words, and don’t worry, we will have lots of Red Bull,
caffeine and Ephedra. Remember the program! We only sell energy options Long.
Make sure to complete your prospect sheet with all the information. Make sure
it is tied down, properly filled out with all necessary information. As far as closing a deal, do the first
attempt yourself. If you have questions transfer the call to a senior broker
for explanation. It is important to remind you that all clients are clients of
the company, if a broker leaves the clients stay with the company. All
information is property of the company. Don’t speak to people you know about
the company business. Information like this will eventually be used against you
and this will result in problems for you and potentially your co-workers. Don’t be the guy who messes things up for
everyone. We will always find out who is the “Gossip Queen”. Be advised, if you are not here, whether
excused or unexcused, brokers will trade your book and add their numbers to
YOUR ticket. If you are not working with a Senior Broker then the split will be
50/50. If you are working with a Senior Broker then the split goes to 25/25/50.
Don’t give your money away for been lazy!”
Paul took a zip of
his drink, made a signal to Chad to play a recorded audio. Sofia’s call to Mr.
Jenkins was all over the speakers for everyone to listen. By the time it was
half way, Paul was surprised by Sofia’s knowledge and how she had presented herself.
His signaled to Chad to stop the recording, and went on and on again.
“This is awesome. I have been in this business for a long
time, and it is the first time I hear a new broker with so much enthusiasm. Her
fronting was perfect!” But it is important to know that it was a waste of time
to try to do it all alone. Sofia”… He went on…”you know that we have the
complete script done for you, and what you have to do is to read it step by
step, and do not go all over the board, unless you know how to get back into
the basis. We do not need anyone here to try to reinvent the wheel. We have a
system and it works,”
The meeting was not so terrible after all thought Sofia. She
was glad that Paul did not hear her giving away web links. One hour and half
later Stonegate receive a call back from Mr. Jenkins, but Sofia was on another
call.
“It’s a call for Sofia, its Mr. Jenkins!” Said the secretary
while turning towards where Jose Roberto was seated, and observing everyone’s
reaction in the main room.
“Oh. Let me run over
there… Oh, I see that she is on another call.” Jose Roberto said to the
Secretary.
What to do? Shall I give the call to
another broker? Shall I get the number and tell him that Sofia is on another
call? I guess it’s better not interrupt her. Jose Roberto was
uncertain.
“Transfer the call to me”
“OK, Line One.”
“Hello? Ah. .. Hi...Mr. Jenkins, this is Jose Roberto…I see
from here that Sofia is on another call…”
“Just tell her to give me a ring. I will be here until 9 PM.
She has my number”
“Click.
“Wow, that was fast!”
“What happened?” The secretary asked
“He will be expecting a call back from Sofia”. Well, this is weird…Not, based on what Sofia said last...Maybe he is interested. ‘I am starting to like this dike!’
Meanwhile, Sofia was on a call and Chad was standing by his
side listening to the conversation through a speaker phone.
“It is just too good
to be true, I mean it sounds too good to be true.” The Client said to Sofia.
“That is right Mr. Smith. I think so, as well. You see, must
people are skeptical because they were taught to be. I believe and so do you
that proof comes in many forms. The Commodities Market is a business too good
to be true. Opinions in commodities are even better ‘too good to be true
story.’ Is it fair to say that you passed many opportunities before for that
very reason? Don’t let shallow thinking and fear keep you and your family from
a tremendous opportunity in the market. Be good and be true to yourself and
have courage to send me $ 5,000 and take advantage of this expected move.”
“Click.”
“Where do you get this stuff from? I mean, it was good,
freaking good… Just keep on going baby!” Said chad.
Sofia smiled and kept on dialing another number to reach
another prospect from her list.
“Hello Mr. Bowen? Hi, this is Sofia with ……”
“Thanks for the great explanation Sofia, but I am working
with a stock broker”
“I understand Mr. Bowen, but please, let’s get us all on
even ground here. Asking your stockbroker whether or not to do commodities
would create a conflict of interest. It would not benefit him to tell you to
diversify with another broker. I wonder why he never mentioned this type of
opportunity to you, but let’s say if it was him recommending this to you
instead, would you be more inclined?... I get it.”
“No, Wait.”
“I am here.”
“Well, let me think it over. I will call you back Sofia.”
“Mister Bowen? If I am on the phone when you call, just
leave your name and a time to call you back, I have your number.”
“Click.”
“Why didn’t you ask him to leave number? Well, never mind!”
chad said to Sofia
“Chad, I honestly prefer that they call me back and show
interest, so I can discuss with them from the point where they were left. I
keep track how far I have been with every call…see here, on this book? I have
their names and what was not discussed. At
least I can go back one day and remind them of the opportunity they’ve missed”.
“That is very cool. When I was a broker I only got calls
from existing clients. It is not easy to keep up with every call of prospects
along with all the information required to give to existing customers”
“I didn’t know you were a broker before. Where?”
“Futuretek Trading Corp., a while ago. It didn’t work. The
firm was closed down.”
“Oh, I heard it. That’s Paul’s old firm. Rickie told me”
“Rickie! He is a
great guy. I used to work with him. Actually Paul and I worked with him a long
time ago at Group Two Financial Services”.
“I’ve never heard of this firm. Actually, I heard of so many
firms, but they are all out of business. While I was checking for a job, every
place listed in the internet was no longer in existence!”
“Yeah… We cannot have any papers on top of our desk or your
bullets. You have to talk like you talk now. Nothing to read, but just what is
in your memory”
“So, why do I have these papers here? I don’t need them
anymore. I just need the outline of what I need to cover.”
“It’s what you suppose to have!”
“Good then.”
“I need something to drink” Sofia walks away from her desk
leaving Chad behind
“Hey. Sofia, I am glad you’re off the phone!” What Am I saying? “I have
two names, no numbers…For you to call…he, he, he, that fellow Jenkins called
you too.”
“Thanks Jose Roberto. I just hope he doesn’t procrastinate.”
“You can call me J.R.”
“OK, cool.”
Trim, Trim,
Trim… Trim, Trim, Trim… rings the telephone at Mr. and Mrs. Jenkins
residence. “Bob? Bob, can you get it?” Said Mrs. Jenkins while turning the knob
of the oven to 350F. She was not in any hurry; she had finished confectioning
the most perfect lasagna for dinner.
“No Sue, I can’t…I mean, I will be there in a second”
“Jenkins’ Residence, this is Susan”
“Hello Mrs. Jenkins, This is Sofia. I am returning Mr.
Jenkins call”
“I know Miss Keller, He is expecting your call, but he is…oh
good! … Here he is, Bob, it’s
for you.”
“Hey Sofia, thanks for holding.”
“Hi Mr. Jenkins, I promise not to take much of your time.
Did you have a chance to check on those web sites I gave to you? Uh hum… and do
you have the piece of paper where you took your notes?”
“Yes, the paper is here… I checked the sites. I saw your
name there… under Brokers. I also saw that your firm is under investigation, or
better saying, there is arbitration or something going on.”
“It’s possible Mr. Jenkins; you know this is a very
sensitive market. There is no room for errors. I will check the site today”
“I just hope you are not in trouble over there.”
“I hope so too! One thing I know Mr. Jenkins. The NFA’s job,
rightfully so, is to check on ever firm. Please grab that piece of paper…
“I have it right here.”
Good…when I told you if we could catch a 5 cent move in our
option…and we came to a total of $2100 per option, it is important to rephrase
that if we can catch a 5 cent increase on your option the calculation is
correct, but it is not easy to obtain the entire amount of the profit when you
catch $5 cents.” Gosh what am I saying? “What I mean is… January’s
price of a gallon of Heating Oil in the market is $2.84. Let’s say you want to
enter in the market right now, and all of your paper work has been approved
etc. I’ll send the ticket over to the floor. I know that your cost will be
around $2.93, $2.95. This will be the price written on your contract, and we
need to see a move from that point on to be on green. This is what they call speculation. We are
purchasing a contract from a speculator like you, and he wants to sell high. So
he goes as high as he can go from the today’s price because we are foreseeing a
price in the future. Do you understand this?
“Yes, I understand.”
“I am not quite sure you do Mr. Jenkins. It is even hard for
me to explain, and believe me, I have seen tickets when prices were$ 2.80 and
they were filled at $2.90 and the client did not like it very much. The reality
is… you cannot purchase a contract for the price tag because you are purchasing
it through the exchange, sold on the floor from another speculator. Behind this
Option contract, there is an underlined contract in the future market that
someone will take delivery. Not you! So, this person wants to sell it higher to
you.
“I got it Sofia!”
“Good, but there is more!”
“What else more?”
“Let’s assume we got you a ticket for January and your price
tag is $2.90. We will observe the computer and when the price of Heating Oil
reaches $3.00 you will maybe get $2.95 for that ticket. The floor is buying it
from you; therefore, the floor people want to buy it cheaper to sell it high.
Now when we are $.5 cents ahead, there is timing value as well. Option is a wasting asset. It deteriorates as
time passes. If the price becomes very volatile it makes harder to get the
value we want. In other words, we want the price to go up, and this is all
there is. For what I figure in here Mr. Jenkins, I want you to invest $10,000
and when I see an opportunity to make in your hands $35% of that value, I will
invite you to get out of the market.
“It makes sense Sofia.”
“I just want to make sure that my explanation from before,
the one that looks good on paper, is different from reality because it is.”
Are you in Mr. Jenkins?
“Yes I am, definitely.”
“Fantastic! What is your fax number? What is your email,
what is your Mailing Address?”
“You don’t need any of that Sofia. I visited your firm’s web
site and I filled an application for an account under your number. I printed
all the forms and I already got a FedEx authorization to send it to you
tomorrow. Your company has the best site. Very friendly and very easy to use. I
also printed all the other stuff I want to take a look at”
“Yey… I see it here on my screen Mr. Jenkins” Let me
see…Regulation 135 Risk Disclosure…Option Disclosure Statement…Individual
information form…Consent to Jurisdiction…Customer agreement… So far so Good,
Mr. Jenkins…Welcome letter…Additional Risk Disclosure….It is all signed and
completed…OK…Fees and commission page…Photo ID, Utility Bill…Form of
payment…Mr. Jenkins? It says here that you are going to purchase 40 contracts?”
“Yes… We decided to taste the waters with $40,000”.
“Good…Tomorrow around 11:00 I will give you a call to let
you know if we received it all.” If we do not see a good opportunity tomorrow,
we will stay on the sidelines waiting for a good opportunity. You have a Good
Evening Mr. Jenkins.”
“Thanks Sofia”
“You are welcome Mr. Jenkins”
“Click.”
Chapter 1 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-1.html
Chapter 2 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-2.html
Chapter 6 – 7 http://miltonlaenearaujo.blogspot.com/2013/08/the-commodity-broker-chapter-6-and-7.html
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