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Can we trust on tips from Stock market research One of my friends experience ::
i used to work in stock advisory firm. I''m an Indian and you question does not specify which country you belong so i will tell about India.

Major hub of adviosries are Indore, Rajkot, Banglore, Ahemdabad, e.t.c. My advisory was registered, in 10-15 min advertisement were displayed on news channel. One of the leading advisory in Indore and it also had Bonanza Service with written agreement of TRIPLE profit (Biggest trap).

now coming to your question

NO!! A BIG NO!!!!!

WHY?

Who the hell care about you? The firm only wants to generate its revenue. My firm had around 400 staff. 350+ were in sales team, less than 15 in research team. Every advisory has same story. The one who advertise on money control also. Blink!

Sales team: engg. graduates, BBA mostly 22-25 year old. Knowing nothing about market but for sure always cursing research team for 90% failed tips. Listening to customers abuses for loss.

HOW THEY TRAP YOU?

1. they ask you to register in firm with their basic services. if it cost Rs. 15000/- you may give 1000 and start your service.
Loophole: First you make payment then you register. Mostly people do not read term and condition. So payment is not refundable. You may pay 5000 for 3 day service.

2. They ask you remaining payment within a week if you don''t pay you service may stop in 3 Days. So customer think it will be benifical to pays 10000 more for 3 month service. so makes payment. Total payment = 15000/- (service tax not included)

3. then you understand that you are not getting profit which they told you as basic service has 1-2 point work. thats all. so you might get profit of 200-300 rs at max and losing also so basically no profit at all. you are depressed.

4. They give you an !dea of Bonanza Service ask you to give 15000 more so that you get written agreement for your profit, you think that i will get profit of 240000 on investment of 80000 in 20-22 days. so you may pay 150000 rs and register in Bonanza service. You are trapped.

Now they can deactivate your service whenever they want as full payment is not done. So you are asked to pay full or enjoy service for 5 days. in Total you paid 35000 for at max 15 days. now pay 80000+tax or leave your choice.

TRICKS USED
Roleplay: As services are telephonic sales so any body can become manager, a guy from account department, a guy from audit department, IT guy, a guy who pickups phone and says concerned person is in meeting, e.t.c. There is no department in these advisories.

RISK PROFILING FORM: no tip is desinged according to you. same is given to all you has investment of 2 lakh or 20k.

FREE TRIALS: given to you free just to talk

people pay also. India is full of IDIOTS. some shopkeeper from rajsthan, Gujjus, South people(they are nicest person to talk), marathis, NEW COMERS who think they can get 30% return, Buisness men, Students, retired people and list goes on.

So this is all about advisiories. Ask them if they can gove assurity they will say no (not directly).

Rest depends on your judgement.
Mostly victims are illiterate, emotional, gullible who trades through his broker.

A story we read about stock market TIPs in a book by an internationally acclaimed author goes something like this.
One day, somebody (let’s call him Mr. X) received a stock market prediction in a newsletter from a TIPster, saying that they give accurate Stock Market TIPs and which can be tested for a few days before subscribing to their service. The service was unusually expensive and the newsletter also mentioned that these charges were high, since they were able to predict the markets with 100% accuracy. It further said that Mr. X can try it for a few days and then decide. Fair deal, Mr. X thought. The note also had the stock market prediction for that day, which said that Share A will be down for that day.
Mr. X made a mental note without giving too much attention to it and went on with his daily routine. By evening he had even forgotten about it.
Next morning again the Prediction newsletter came and said that Share B will go up that day. This reminded Mr. X about Share A and on looking up in the newspaper, he saw that Share A was indeed down the previous day. But he was not particularly enthused as he thought that getting one prediction right is no big deal. But this time, he made efforts to remember the Prediction about Stock B. Today he was actively tracking what happened to the stock B and when markets actually closed. He realized that Stock B has actually gone up as predicted by Mr. X. He got a bit excited but thought of seeing what happens the other day.
Next morning he received the prediction newsletter again which claimed Stock C will go up today. Mr. X kept the note in his pocket and was mentally calculating how much he should invest. But he was hesitant and didn’t invest. During the day, he was excitedly looking at the Business Channel to see where Stock C was heading. And when the markets closed Voila, the prediction again was true.
Mr. X now was quite excited as he thought he has found a great opportunity to invest in stock markets and make some money with this 100% accurate newsletter.
Next day he was waiting for the Prediction which did come but along with the prediction for Stock D it also said that if you want to continue this service you have to pay the fees. The fees were hefty , but Mr. X thought even if few predictions are right he can make a lot of money which will more than cover the fees.
That day he invested a small amount of money in the recommended Stock and it again went up. Mr. X took out his cheque book and started writing a cheque. While he was doing so his wife came to him and asked him to exercise caution while paying the hefty fees. Mr. X was not in the mood to listen to anyone and continued writing the cheque. He than went out mail it to the TIPSter.
As soon he got out of his house he met his neighbor, let’s call him Mr. Z. They got talking and Mr. X told him about this new stock market prediction service. In fact, he even showed it to Mr. Z. Mr. Z looked at with a puzzled expression.
He said he also got this letter for two days – first day’s prediction was right but on the second day it was wrong. Then he didn’t receive any further predictions after the wrong prediction. This revelation by Mr. Z got Mr. X thinking. He asked him whether recollects what were the recommendations. Fortunately, Mr. Z had those newsletters and immediately bought them to Mr. X.
Mr. X and Mr. Z now placed them in front of them and the entire gameplan got clear in their head.
So what was happening!
This TIPster started by sending two opposite predictions to a large number of people who they picked from a Telephone Directory. Now he was maintaining the record of what recommendation were sent out to whom. In the evening, they will know that for 50% people recommendation was right.
The next day predictions were sent only to those 5000 thousand investors. Out of these 5000 again to 2500 one prediction was given whereas to other 2500 opposite of it was given. By evening for 1250 people the TIPster would have been proven right thrice.
The Same step being repeated next day and now for 625 people the TIPster has been proven right 4 times in a row. Quite an impressive track record for the unsuspecting investor. By this time a lot of investors started taking them seriously and were willing to pay the hefty fees. Even if a fraction of people pays the hefty fees it’s a money spinner for the TIPster. But for the Investor it’s a PIT. Avoid falling for and in it 
We have recreated this story from a popular book and are thankful to that author for letting us realize this. There are a lot other issues with the TIPs received for stock market investing, which will cover in other articles.
Illustration of Modus Operandi

stock tips are a pit


So on so forth.
Next time when you get the TIP, take a hard look and real hard look. Think about
Source of that tip,
The incentive of the person giving you the tip
The responsibility of the person giving you the tip
Track Record and reputation of the person giving you the tip
Why is he giving you the tip
And listen to your wife :)
Thanks for reading and if you have any experiences to share, please do.

RULES FOR STOCK ANALYSIS.

Rule :1
If the high price of the entire week is achieved on Friday, expect higher prices next week.

Rule 2

If the low price of the entire week is achieved on Friday, expect much lower price next week.

Rule 3
In a highly uptrending market weekly low’s is achieved on Tuesday

Rule 4
If market is in strong down trend (if main trend is down), the weekly highs are generally achieved on Wednesday.

Rule 5
When the price crosses the high of the last four weeks, it’s an advance indication of more higher prices.

Rule 6
When the price breached the low of the last four weeks, it’s an advance indication of more lower prices.

Rule 7
In an up trending market if the prices breaks the 30 DMA & remain below it at last for 2 consecutive days, it tells us of a much more great correction (vice-versa).

Rule 8
If the market rises for 5 consecutive days, there is a high probability that correction will be last for 3 days. (Ratio is 5:3).

Rule 9
When the price starts rising from a particular level, Rs.100 or 100% rise whichever is earlier becomes a strong resistance.

Rule 10
When price crosses the high of the last 3 days it tells us about much more higher prices on the 4th day. (Traders can buy it on the 4th day and place a SL order Rs. 3 below the last 3 days high) (vice-versa).

Rule 11
If subsequent correction is greater than the previous correction both in terms of price & time magnitude, this is an advance indication that trend is changing.

Rule 12
50% of the last highest selling Price is the strong support area. Any stock which is trading below this 50% level is not the useful for investment.

Rule 13
If a price is rising for 9 consecutive day’s at a stretch, then there is highly probability for a correction for 5 consecutive days. (Ratio is 9:5)

Rule 14

Don’t ignore a double bottom & triple bottom signal on a monthly advance indication for mid term investment)

Rule 15

Don’t ignore a double top & triple top signal on a monthly Not the right place for investment / entry, price may fall.)

Buy Bajaj electric @407-08 SL 399 TARGET 414 +++ Positional .

ICICI BANK & HCL TECH WATCH LIST. TO FLY .ENTER & EXIT AS PER RISK.

Be cautious .North Korea fear may grip market.Do not make long position.

HCL tech blasted. High 890. Keep ICICI as BTST.

Buy Bank of Baroda @ 136 + . It 52 week low . Hold for short term.

What is the reason ? What is the target? Just because it is 52-week low don''t buy.

Axis bank looks good .Buy @ cmp . TARGET 510 / 515

Buy TATA STEEL @653 . TARGET 660 / 665 / 670

Sell ibrealeste @251 . SL 256 Tgt 245 - 240

Ist target of 245.25 done in zoom market.earn 6 points.

Nice call BC ji

Sell ibrealeste @251 . SL 256 Tgt 245 - 240

Buy hdfc bank @ 1750 SL- 1740 TARGET- 1760-1765 Buy hcl tech @ 845 SL 835 TARGETS 880

BC ji,
aditya birla capital buy kare on 1st sept (listing day)?

HCl Tech 845 ---- 868 book partial as per risk .

Buy bnf 24600 PE & 25200 CE , AUG 10 , TOTAL COST APPROX.100. TARGET 200+++

Book partial Profit and Hold till expiry .24600PE.

Buy bnf 24600 PE & 25200 CE , AUG 10 , TOTAL COST APPROX.100. TARGET 200+++
Buy 24200 PE at low now.Take cost around 100.

24600 PE @ 63 now or wait till 50 -55 range.

Buy KAVERI SEEDS @ 694 ABOVE . TARGET 697/704/707++ INTRADAY ONLY.

High 705 hit.Risky can wait for 707 ++++
Book partial profits.

Wah BC ji...chaa gaye

Buy Dwarkesh sugar @cmp Target 570/573/
Intraday only.

TARGET 1/2/ hit.High 585+++

Nice call...!!

Dwarkesh sugar enjoy profits.

Sir , what is view about Bluedart . Should enter ?