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Are you into share market trading? Do you want 3 tips to carry out successful share market trading? So you have to pay only if the tips provided are successful and you make a profit out of it. Do you receive such phone calls? So is it beneficial to trade based on such tips or is this a planned trap? Let us find that out.
We hope to de-mask the truth behind such phone calls with this blog post. So you might receive similar such calls stating different locations saying that “I am speaking from XYZ Advisory company. Asking whether you trade in the share market? If you answer saying yes, then they will provide you tips for successful trading. That person will also insist that you will have to pay them only if their tips prove to be profitable. Then, if you agree, they would insist to begin the trail.”
After this call, you might feel that this is a good offer. Also, I have to pay only if I incur a profit. Why not take this trail and see? If you have such a thought then you probably are making a serious mistake. You are opting for a very wrong trial. Here, you might probably end up making a fool of yourself and find yourself in a dreadful trap.
How? Let us see. These people who call you to offer such tips, they follow a certain strategy. So the strategy is that out of all the people they call they divide those people into 2 groups and fool them. You might want to know, how do they do this?
Well, consider a company named XYZ limited. Suppose the fake Advisory calls roughly about 100 people a day. Now, what they will do is, they will tell 50% of the people that the price of the share of XYZ company is going to increase, so you should buy the share and they will tell the remaining 50% of the people that the price of the share of XYZ company is going to decrease, so you should sell that share. Being a share, there will be some movement in it, either the price will go up or it will fall down.
Consider, the share sees an uptrend during the day and so the share price goes up. So the people whom the advisory had asked to sell the share, they won’t call them again as their prediction went wrong. And to whom they had advised buying the share, the advisory will call them and ask them, “How did you like the tip? We had told you that the price of the share will go up.” So you will nod your head in agreement and say, “Yes the tip worked.” Further, they will insist to provide you with one more tip. They will provide you with another tip, the next day.
What next? They’ll repeat the same game plan again! They will call up the 50 people, whom they had suggested that the price of the share will go up and again divide those 50 into two groups of 25 each.
Now, the advisory will advise a new share namely, ABC limited. They will tell the 25 people that the price of the share of ABC limited company is going to increase, so you should buy the share and they will tell the remaining 25 people that the price of the share of the ABC limited company is going to decrease, so you should sell that share. Being a share, there will be some movement in it.
Consider if the share price of ABC limited goes up during the day then the advisory people will not call those 25 people whom they had recommended selling the share. They would instead call the ones to whom they had suggested buying the share. And then they would ask those 25 people, how did they like the tip?
So the ones who had received the tip will feel that such tips really worked as the advisory had suggested the share XYZ yesterday and the tip proved useful. Similarly, they suggested buying ABC limited today and that too worked. The advisory people would now say that not 1 nor 2, we’ll be giving you a 3rd tip tomorrow
Now, its day 3 and the game plan is still the same. The advisory will call those 25 people from yesterday, whom they had suggested buying ABC limited since their tip worked as the price of the share had increased. They will again divide those 25 people into 2 groups and again apply the same strategy.
The advisory will now advise a new share namely, PQR limited. They will tell 50% of the people that the price of the share of PQR limited company is going to increase, so you should buy the share and they will tell the remaining 50% people that the price of the share of PQR limited company is going to decrease, so you should sell that share.
Consider that the price of PQR limited falls considerably during the day. Here, the advisory people will not call those people whom they had recommended buying the share. They would instead call the ones to whom they had suggested selling the share. And then they would ask those people, how did they like the tip?
You would end up thinking the Advisory is amazing. Everything worked out as they had mentioned in the tip like they said the price of XYZ limited would go up, it did; then they said the price of ABC limited would go up as well, it did; next, they recommended that the price of PQR will fall & it did. So you’ll feel as though it’s some miracle and the advisory is some form of God which knows it all.
Out of curiosity, you’ll ask the advisory, “How your tips are so amazing and accurate? Where do you’ll get such tips from? They would reply saying, “That’s a secret. We get them from a secret source.”
Then you would ask them for the next tip, the fourth tip. And they would reply saying, “We’ll provide the tip but this time it won’t be free anymore. You’ll have to pay us a certain fee for that or you’ll have to share half of the profit that you’ll incur from using our tip.” You would feel that both options are fine. Why not join hands with them and make a good profit?
What next? Nothing new, they would play the same game plan and apply the same strategy of divide and rule and make everybody a fool! Hence, Aryaamoney advises you, ‘Not to fall prey to such tips.” Such tips can prove to be very harmful.
Various articles have been published in leading newspapers regarding such spamming’s. The most prominent location from where you receive such calls is Indore in Madhya Pradesh. The below paragraph highlights some of these articles:
Four directors of Indore-based investment advisory firms held
Four proprietors of various investment advisory firms operating from Indore have been arrested for allegedly cheating investors of thousands of crores of rupees all over the country, police said Saturday. Cyberabad police said in a release Rs 3.63 crore has been seized from the firms. The complainants alleged that they were asked to take their tips for share trading and made to pay registration and other types of fees. The firms allegedly did not provide the tips or the tips provided by them were not useful, according to the release.
Some Names of Raided Firms include:
Cash Cow Research, Capital Care Research, Analysis Exchange Investment Services, Vivan Equities: Life Tips Market Research, Karat Research, Sharepati.com, etc.
https://timesofindia.indiatimes.com/city/indore/Four-held-for-running-fake-investment-advisory-firm-in-Indore/articleshow/55252363.cms
20 People in Indore Held for Misleading Investors, Fraudulent Data Collection
https://www.news18.com/news/india/20-people-in-indore-held-for-misleading-investors-fraudulent-data-collection-2224141.html
In order to be successful in the market, there are only two options. The first is be the Expert and the second is Follow the Expert. If you wish to become the expert then you’ll have to learn the right method, analyze the market trend as well as market valuation properly then you’ll be able to earn good returns in the market. And if you don’t want to do it by yourself then you may opt to follow the expert.
If you feel the share market is bound to give great returns in the long-term then invest in Sensex-Nifty as the share market is all about Sensex & Nifty, why to rely on tips? So, how to invest in this Sensex-Nifty? You can do so through Mutual funds as well as through Index funds.
Here, let us see understand what is an Index fund. So consider, if there’s a Sensex Index fund which means that the mutual fund which invests in the top 30 companies of Sensex, then we should opt for such kind of a mutual fund. Thus, if Sensex increases in the long-term then you’ll earn good returns there. And if you think that this market is too volatile then you can opt for SIP i.e. Systematic Investment Plan. In this way, you can invest per month systematically. So if you opt for Index fund through SIP, then you can surely earn good returns in the long-run if you are ready to take some risk.
Until the next blog…
Happy Trading, Happy Investing!!!
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