CLIENT ALLEGES BREACH OF ORAL CONTACT. HE CLAIMS HE GAVE FA VERBAL DISCRETION TO TRADE HIS ACOCUNT, BUT WHEN A STOCK LOST 15% IT WAS TO BE SOLD. THIS WAS NOT FOLLOWED.

$12,000.00

CLIENT INSTRUCTED ME TO MAKE RECOMMENDATIONS IN SPECULATIVE STOCKS, AND IF THEY LOST 15% TO SELL IMMEDIATELY. WE FOLLOWED THIS ON THE FIRST STOCK THAT LOST 15%. THE STOCK THEN REBOUNDED 20% OVER THE ORIGINAL PURCHASE PRICE. I TOLD TE CLIENT HE NEEDED TO REMOVE THE 15% SELL STOP DISCIPLINE IN ORDER TO CONTINUE THE RELATIONSHIP. HE AGREED. IN ADDITION, MOST OF THE LOSSES GOING FORWARD WERE IN STOCKS THAT HAD A BUY RATING FROM PSI'S RESEARCH DEPT.