Don't rely on tips to trade in Stock market
By sunstar402
@sunstar402 (676)
India
July 12, 2009 12:35am CST
Hello friends,
Studying stocks has been my passion and am fortunate to do what i really like.
Investing in stock markets is a very simple process and also a very profitable one but most people find it difficult, complicated and mysterious.
The reason for this is that they want superior returns compared to the bank deposits at the same safety/risk level and that too without efforts or based on some tips from someone.
Now this someone could be a very dangerous person from the point of view of your investment. Why?
Because he could be just a friend who knows a little more or sometimes even a little less from you.
Or he could be your colleague who gives you some tip just because his friend has given him this tip
Or he could be your financial advisor from the bank or the customer service executive or relationship manager from your stock broking firm who is keen to sell a new financial product as that will get him his commission or promotion.
But in order to achieve good results in the markets one has to do some homework and research by oneself.
But it is indeed a complex task where you need to consider a lot of things, understand a lot of financial concepts in which we are not well acquainted and also to devote considerable time and effort.
But the good news is it is not all that tough and time consuming. Just a little effort and time (as little as 10 minutes) and everyone can really reach the next level.
4 responses
@sweta123 (153)
• India
12 Jul 09
ya you are right..just on budget day one of my friend said market ll rise some 300-400 points so he suggested me to buy shares of SBI and i bought in rs1820 and then it decreased and now its rs1543..i am confused what to do now?wht do you think this ll grow or not??
@sunstar402 (676)
• India
13 Jul 09
Last time around in 2008 when market fall badly i have traded 2 to 3 scrips taking tips from some of my friends and i was trapped so badly even though market recovered i was not able to recover my loss in those scrips.
@g_vickie84 (576)
• Belgium
4 Aug 09
Tips in one way are good. Atleast they give you some new things to search about. May be you will get to know about some new scripts which are good and which you were not aware of till now. But it will be making a fool of yourself if you invest in those scripts solely on the basis of the tips and rumours. Analysis on your part is must for this. Nobody is a born trader. If you want to trade you have to learn it and the best way to do it is by trading. Start analysing by yourself and then invest. Surely you will start seeing the difference as you will keep on doing it.
@babshish (1387)
• India
12 Jul 09
Hi Sunstar, you are 100% right that we should not blindly believe in tips which we receive in stock market, most of the time this tips are rumors and can be dangerous for your capotal. I am dealing in stock market since more than 5 years now, and I do get tips from various sources, whenever I get tips I do my R&D first and unless and until I am satisfied, don't do any trading. If you are trading on tips than it is puerly a gamble. I do believe in technicals and work accordinly.
My personal experience that you can never be in profit in blind trading, one day you will earn and other day you will losse. SO study the technicals and trade accordingly. Go for small profit or keep your stoploss while trading, you will not loose much.