In the alternative investment market, trust is something that must be present in any business relationship. Though this may seem easy to find, the fact is, it can be like trying to find a needle in a haystack.  In a time where technology allows us to communicate like never before, modern business is now growing more impersonal every day!

From the beginning of mankind until about 30 years ago, almost all business deals were done face to face.  People would make decisions many times with their intuition, and since they had a face for the name, trust was much easier established.   Even though this technique has been used for thousands of years, the Internet and phone have now taken over this role, especially in the alternative investment markets.

Despite the recent trend in the investment world, we still believe that face to face meetings are invaluable. For those of you agree, we have listed some tips to help you prepare for a typical meeting with an alternative investment trader, broker, and fund manager. Scroll down, and take a look below.

Tips for Face to Face Alternative Investment Meetings

1.  Assess Gut Feeling:  Despite what some rationalists may believe, your gut feeling is right more often than you think.  If you are smart, and don’t allow your judgment to be clouded by “high yields”, you should have a good or bad sense after leaving your first face to face meeting.  Once you have left the meeting, you should assess the facts, claims, due diligence, risk, and reward, and most importantly, your gut feeling.  Now, with the help of your new found intuition, it becomes far easier to make the right decision.

2.  Observe Minor Details:  When you are meeting with an alternative investment broker, trader, or fund manager, it is critical to evaluate a wide number of small details.  First, ask yourself, “How did they portray themselves over the phone before meeting with me”?  Then ask yourself, “Is their body language, confidence, and overall appearance in alignment with who they claim to be”?  Since there has been an influx of fraud in the alternative investment world, you must thoroughly evaluate their personality, appearance, sense of confidence, and vibe, looking for red flags along the way.   Remember, if things seem a little shaky in any area, you may be in for a surprise in the future.

3.  Evaluate their Preparation:  If you are investing a large amount with an alternative investment firm, the company should always come to the meeting well prepared.  During the first meeting, real alternative investment firms will try to stress a long term relationship, and will go out of their way to address worst case scenario. In contrast, those with less experience or ill intent will “be there to make you feel comfortable”, and will usually press you to open an account shortly after the meeting ends.  Though scammers can prepare for meetings just as well as real investment firms, remember, this can be another valuable tool to determining your success upfront.

4.  Sense their Confidence Level:  If you are meeting with an alternative investment professional, the most important thing to focus on is their confidence and tone.  If they seem overly confident and excited, they are probably less experienced than they’ve told you.  When you first start to be successful, most people are anxious, excited, and overzealous since they have so many unaccomplished goals to meet.  On the other hand, once you have had steady success, your mood shifts to one of calmness and you develop a “professional arrogance”.  Remember, during all stages of the alternative investment meeting, look for subtle signs to support your belief that their “confidence” is backed, or all a front.

5.  Ask Blunt Questions:  When you ask people unexpected or straight to the point questions, those who are less confident are easy to identify.  Though you don’t want the investment manager to think you are crazy, always remember, it is good to throw a few blunt off-topic questions into the conversation.  In our opinion, this is the best tool to get a true gut feeling on someone.  People who are guilty or unprepared will always show their true color if they are caught off guard. If they slip up in times of pressure or don’t appear as “on point” as you thought, it may be a sign to move on.

If you understand and implement these tips, it will allow you to make a well-rounded decision after your meeting.  As we have mentioned, you should NEVER walk in there with your mind already made up, let them reaffirm your decision and make you feel comfortable. Though many of you may want to save time by avoiding face to face meetings, the importance of one on one conversation can not be understated. Remember, concrete information is critical when making investment decisions, but in many cases, your gut feeling can be more accurate.

InsideTrade LLC Staff
(412) 235-2855