Free Trading Tips-Help or hindrance for Traders

Free Trading Tips-Help or hindrance for Traders

This is the best free time work for everybody nowadays to give free trading tips as well as to ask for free trading tips. Whenever I see someone asking for the trading tips, I feel like saying them, please regard your hard-earned money. I am not saying that all the tips are useless and not working but if you are asking the tips on social sites and follow them then anybody from anywhere can give you free tips which are of no use and you can lose your complete money just because trusting someone you don't know anything about. Operators are giving free tips on WhatsApp groups, telegrams, Linkedin, tweeters, Facebook groups. If advisers are so sure and intelligent then why they themselves not earning from these calls. Have you ever gave a thought that why anyone gives you free service? Nowadays, you will even not get a glass of water without paying money then how can you make money free?

There is the logic behind everything and everything happened because of any motive, Let's try to understand together:

Wants to become famous 

They give so many trading tips to one client, and if luckily some of the initial tips works then the trader would come again to the tip provider, also trader will do positive mouth marketing to many of the other investors and traders and then he will start giving paid tips, tips would be beneficial or not is another issue.

Real Business is going in the backend

Many operators are dealing well with their paid services due to free trading tips, try to understand the below points :

First, they ask to buy a stock for their paid clients.

Then they give free trading calls on social media and other media.

When traders start buying with free tips, stock prices move upward direction.

As soon as the stock moves upward, operators ask to exit or book profit to their paid clients.

When paid clients exit from the stock, then stock crash, and this is the trap for free traders.

Operators are playing for themselves

Operators themselves provide free trading tips to earn profits. Many times traders and investors received SMS and mails that buy XYZ stock for 2 to 5 days and it will get double etc, What is this? This is the game which operators are playing for themselves, They forward the same message to 1000 of people and few of them buy the stocks to earn and at that time you will get daily upper circuit in the stock and everybody start following the same and running behind to buy the same in more and more quantities on daily basis, while as soon as operator earn hefty profits, he exits immediately from that stock and because the value and quantity are very big so the stock starts showing lower circuits on daily basis and no innocent investor get the chance to come out of it until his complete money demolished. Don't trust any messages you receive from unknown numbers to buy or trade in any stock.

So, above we talked about the free tip provider, what about the paid consultancy of stock trading?

Are they all doing a great job?

The answer is, they are more dangerous than free tip provider. In the free tip, you only lose your trading money or investment but in paid service, you also lose the money you paid for trading calls, see you it works:

Let's take an example of Mahesh, he is very new in this industry :

• Mahesh is a new stock trader and he wants to earn money from trading, and he searches on the internet for accurate trading tips.
• He finds a broker for 99% accuracy on the internet and then he contacted him.
• The broker says that he will give 4 days free trial trading tips and after that, he can pay for the entire year.
• Mahesh was satisfied and start trading according to his tips, out of 4 days, he earns 3 days, and 1 day he booked the loss as stop loss triggered, but as a whole, he earned a good sum of money.

After 4 days, Mahesh gets the message that his free trial days have been completed now he can go with the subscriptions that are half-yearly and yearly, if he will choose half-yearly subscription then it will cost 20,000 and if he chooses yearly subscription then he will be charged 30,000 Rs.

Mahesh finds this amount of money very small in front of the profit he earned in that 4 days, he thought that there is no problem if he pays one day profit to the broker, as he will also have to feed his family.

He paid him 30,000 and taken yearly subscription, now the call pick started from the very next day:

• On day one he makes a good profit
• On day two, his stop loss triggered and he booked the loss of double as he earned on day one.
• On day three again he makes some money as he takes very few trades due to the money lost on the earlier day.
• On day four again, he booked the loss, now he is thinking that what is happening with him and why the picks of the broker are not going well.
• Then again on day 5, he booked loss, every day when he is taking trades of thinking that he will cover his entire loss is another loss-making day for him and his loss is getting wider and wider day by day.

You know what happened?

Mahesh got traped in stock tip scams.

What is the story behind the curtains?

There are two groups formed by the broker :

Group 1   and    Group 2

Same stocks to be divided into group 1 and group 2 but the difference is about their picks, group 1 receive buying calls and group 2 received sell calls on the same stock and one of the group will surely be happy with the calls at the end of the day.

The one group among both the groups will surely do well and that group would be the target customers to buy the membership plan and then after paying money, some times they earn and some times they lose because now they are no more in any group, they are just getting the guess calls. One day, traders end up with frustration or after they burn all their money. You should know everything about Investing Mistakes.

How to find a trustworthy and honest stock advisor:

1. Do not believe in the high return promises, If the broker promising you for 50% return or more than that in a month or so than surely he is a fraud and indulges in fraudulent activity.
2. Always ask for the logic and valid report behind the picks, so that you can also have an idea of picking a trade. If he is interested in giving you the rationale behind his calls than he is honest and not giving you just guess calls, otherwise a big AVOID to that type of brokers or advisors.
3. Don't trust anyone just because they are showing you the successful trading records, because records can be made easily by anyone after manipulating data.
4. Don't trust the calls or any SMS call picks just because they ask you to short or long the stock, remember they are just using your money to earn for themselves.

You should always trade or invest with full knowledge of investing or trading from the ground level.

Learn proper Fundamental Analysis, Financial Statement Analysis, Technical Analysis before following the trading tips either free or paid.