Back in February, FINRA informed John Thomas Financial founder Anastasios “Tommy” Belesis, he of rallies for Wall Street and Wall Street 2: Money Never Sleeps fame, that he “may face disciplinary action on a claim that he artificially inflated the price of a stock,” while the Post reported that the firm was being probed by the FBI and the SEC. According to the firm’s lawyer, Robert Bursky, “There is not a shred of evidence that suggests there is an ongoing inquiry by the FBI,” and if you asked David Pitts, a spokesman for John Thomas, if the brokerage is a boiler room, which Bloomberg did, he’d say it is not (and that, on the contrary, “it helps real companies raise money and provides honest advice to investors”). Regardless of whether or not any of the allegations are true, a few business practices one might want to avoid if questions like “is this place legit” or “is this business entirely modeled after 2000’s Boiler Room” are being raised include:
The more frequently you monitor your portfolio, the more likely you are to observe a loss.
This is likely to cause short-sighted decisions and could hurt your investment performance.
If you are checking your portfolio more than once per quarter, you’re doing it too much.
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Dan Egan, Betterment Director of Behavioral Finance and Investing