Commodity trading advisors often wonder how many trading programs they should offer. Generally, less is more. Too many trading programs can communicate a lack of confidence, confuse your customers, undermine sales, and thwart the development of your own expertise. Listen to this episode to find out why too much diversification can be harmful to your business!
Commodity trading advisors (“CTAs”) who use lots of promotional material typically have lower assets under management than CTAs who use none. Why? Because typical CTA promotional materials repel customers! In this episode you’ll learn the primary reason this is the case, and what you can do to avoid this problem in your own promotional material.
Many CTAs have a hard time attracting customers, and their promotional materials are a big part of the problem. One reason CTA promotional materials repel rather than attract customers is that they are riddled with jargon that prospective investors (including institutional investors) find confusing and difficult to understand. This episode explains what jargon is, gives examples (that you might not think of as jargon), and explains why CTAs are tempted to use jargon.
In the last episode, we discussed the problem of not knowing anyone to invest with your CTA. This week we discuss what to do when you know people who want to participate in your trading program, but you think they’re not suitable to invest. We also discuss the customer suitability rules applicable to registered CTAs, and why writing your own more stringent rules about suitability hurts your profitability.
What do CTAs do when they don’t know any prospective customers? The first thing to do is assess if this thought about not knowing anyone is true, and whether it’s useful. Often, the thought is untrue, and never is it useful. Listen to this episode to learn why.
Almost every CTA will at some point be asked to pay to play. “Paying to play” means paying money for the promise of accounts coming your way, now or at some point in the future. This episode discusses the downsides of pay to play, so you can decide
Many gifted CTAs forego significant profits because they simply don’t charge what the market would pay. Listen to today’s episode to find out why this happens and how you can avoid it, so you can earn more money as a commodity trading advisor, and attract more clients into your business.
Some commodity trading advisors don’t manage accounts for their customers. Rather, they sell trading signals. They tell their customers where to buy, sell, take profits and place stops. In this episode, we discuss why this route is often riskier than many CTAs realize, and why it’s generally an impediment to profitability.
CTA’s often struggle to create promotional materials. They’d rather just trade. This episode explains why fancy tear sheets and pitch books are unnecessary. We also discuss common problems that render most CTA promotional materials ineffective, and when to put promotional material to work in your business.
A 2X program happens when a customer wants to double his position size, but he doesn’t want to increase his trading level. Listen to this episode to find out why this kind of customization presents profitability problems for CTAs, and how to give your customer the increased exposure he wants without experiencing these problems.