In your real life, do you get any quality products/service at free of cost? Nowadays, you need to pay even for pure drinking water!
1. Why someone will provide money making ideas (stock tips) at free of cost?
2. You will get dozens of free trading tips each day.
3. Let’s have a detailed look on their motive –
Motive #1 – Many operators provide free trading tips after offering the same to their paid clients.
Thus, stock price gets manipulated which in turn helps only their paid clients. Suppose I have two websites; freetips.com and paidtips.com. One is for providing tips to paid clients and another for free clients. However clients don’t know that both the websites are operated by the same person (or same group of people). So, what I am doing is, I am offering tips to my paid clients first. After their purchase, I am distributing the same to free subscribers.
While, free subscribers start buying the same stock, the price starts moving in upward direction. Exactly at the same time, I am recommending “Profit Booking/Exit” call to paid clients. Thus, free subscribers get stuck at the top. So, my paid subscribers are getting good return at the cost of free clients. My motive is to collect more subscription fees from paid clients! This way one can easily manipulate the price of lesser known stocks (specially, midcap and small cap stocks).
Motive #2 – Operators often offer free tips just to have a smooth exit at hefty profit.
The company is in microcap category and I didn’t hear the name before than that. Trading volume was much higher on both the days and stock price appreciated a lot. The pattern suggested that the operator had sent the same SMS to thousands of retail investors and many of them purchased the stock. The most surprising fact is that on those days three operators sold quantities worth of the same stock. So, operators were selling a particular stock and simultaneously sending SMS to thousands of retail investors to buy for “sure-shot” target of doubling the money!
In the next 10 days the stock was hitting lower circuit continuously and stock price reached to below a fraction of the previous price. There were no buyers for the same and as a result it got stuck in lower circuit. Thousands of retail investors got stuck lost around 90% or more and expressed their anger.
Nobody is there to save them. With the advent of mobile phone and internet such practice is quiet common. Be careful from the next time if you receive such SMS!
4. Why paid trading tips are sometimes more dangerous?
You can lose your investment amount from free trading tips but what about paid tips. Surprisingly paid tips can make you suffer more because in this you not only lose your invested amount but also your subscription amount.
1. Why someone will provide money making ideas (stock tips) at free of cost?
- Their motive is to bring back their existing customer.
- None of them are doing charity.
- None of them have the motive of making you rich.
2. You will get dozens of free trading tips each day.
- Your broker is also eager to provide trading tips at free of cost.
- Moreover, dozens of websites offer bunch of new trading ideas everyday totally free of cost.
- Including Facebook and Whatsapp groups, the list of free trading tips provider would be very long.
3. Let’s have a detailed look on their motive –
Motive #1 – Many operators provide free trading tips after offering the same to their paid clients.
Thus, stock price gets manipulated which in turn helps only their paid clients. Suppose I have two websites; freetips.com and paidtips.com. One is for providing tips to paid clients and another for free clients. However clients don’t know that both the websites are operated by the same person (or same group of people). So, what I am doing is, I am offering tips to my paid clients first. After their purchase, I am distributing the same to free subscribers.
While, free subscribers start buying the same stock, the price starts moving in upward direction. Exactly at the same time, I am recommending “Profit Booking/Exit” call to paid clients. Thus, free subscribers get stuck at the top. So, my paid subscribers are getting good return at the cost of free clients. My motive is to collect more subscription fees from paid clients! This way one can easily manipulate the price of lesser known stocks (specially, midcap and small cap stocks).
Motive #2 – Operators often offer free tips just to have a smooth exit at hefty profit.
The company is in microcap category and I didn’t hear the name before than that. Trading volume was much higher on both the days and stock price appreciated a lot. The pattern suggested that the operator had sent the same SMS to thousands of retail investors and many of them purchased the stock. The most surprising fact is that on those days three operators sold quantities worth of the same stock. So, operators were selling a particular stock and simultaneously sending SMS to thousands of retail investors to buy for “sure-shot” target of doubling the money!
In the next 10 days the stock was hitting lower circuit continuously and stock price reached to below a fraction of the previous price. There were no buyers for the same and as a result it got stuck in lower circuit. Thousands of retail investors got stuck lost around 90% or more and expressed their anger.
Nobody is there to save them. With the advent of mobile phone and internet such practice is quiet common. Be careful from the next time if you receive such SMS!
4. Why paid trading tips are sometimes more dangerous?
You can lose your investment amount from free trading tips but what about paid tips. Surprisingly paid tips can make you suffer more because in this you not only lose your invested amount but also your subscription amount.
No comments:
Post a Comment