Tuesday, January 22, 2008

DISADVANTAGE OF FREE TIPS

· You come across any number of Tips every day, You are never sure or confident which stock to buy, accumulate, hold or sell.

· You believe in simple formula higher the number of recommendations more the chances of rising that particular stock. This theory works some times but fails most of the time.

· You come across 100s of opinions and views which instead of benefiting you in anyway makes you more confused and in decisive in every possible way.

· You buy or sell shares without any confidence and faith in your trade because you seldom knows the real catalyst which is responsible for increasing the reaction in that particular stock.

· At a slightest profit booking you deem it a major correction on anvil and most of the time run for a shelter asking every next person whether to hold / sell the stocks and quite often take decisions which is almost against your interest.

· Every correction is an opportunity to buy certain stocks and similarly every rise offers an opportunity to book profit and switch over to next undervalued share, Instead you get shocked and starts buying the stock at lower levels which sometimes works wonder but mostly it’s un productive.

· Many Group members at different groups and message boards generously post their valuable tips without disclosing their source of information and accepts your thanks and appreciation instantly. In fact they Are trapping you in a spider web which you never realise because you are already obliged by his generosity of giving you free advise, if the stock is appreciated he will come forward and claim, in case of loss none of your group members or moderator can make him accountable.

· Just ask a simple question to yourself, Why anyone wants to help you free? By spending his own time, resources and money. Sending you free tips through messengers, SMS or through postings on different yahoo groups. Answer is simple, he is either inspiring you to buy that stock so he can sell of his stake by increasing volume in that particular stock or he with a proxy identity is helping any broker or a research house which had already accumulated that particular stock. In case if market is bullish the stock is further appreciated and you also earn some profit otherwsie if market falls you are un willingly trapped once again and bound to hold the stock till it recovers.

· Free tips coming to you in any way harms you more than benefiting you it’s always injurious to your capital. because mostly it is manipulated, un focused, un accountable and situational, it is similar to jumping in water without knowing swimming or wearing Life jacket. You just take a bigger risk on Hopes that the stock will rise which is pure a chance. You save a few thousands towards subscription and risk your lakhs of Rupees which is neither professional nor logical.

· Whatever you earn from Free tips largely depends on prevailing circumstances and works on chances (pure luck), it’s will never give you consistent returns on your investments and trade and most of the time will block your capital in absence of timely Entry & Exit Guidance.

· Just try any paid group or analyst once in your life time after gathering relevant information from every available resources or through the members of that groups, in case of doubts or contradicts directly correspond with the group owner before joining them. Am sure you will be among the few who regularly earns from their trade and investments compared to others who buy and awaits for profits. Remember you have to follow the trend of the market and act accordingly, market will never work as per your whims and fancies.

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