Tips & Tip Providers
Type in google search for stock / commodity market tips and there is no shortage of search results. But do they work or are they just a hyped ponzi scheme ? Here we try to unravel the truth based on our experiences and observations. No specific names shall be taken because we are not targeting any individual or firm for that matter. We are going to attack only the systemic practises followed by advisory services that may be detrimental to you, the viewer or customer.
Market gurus on TV or other Tip providers via phone, SMS or social media give you entry and exit points for a particular instrument in a particular market. So if you have read our post Mechanical Trading System, you will understand that they have answered only three questions from the list there. So you have to speculate about the other three which is a sure shot way of destroying your capital.
A tip provider, may sometimes specify a quantity to be traded but may keep increasing or decreasing the advised trading quantity. Again, not a good idea. Any seasoned trader will tell you position sizing is one of the most important part of your trading. If you don't have a solid position sizing plan, you are already out of the market before you are in. You just do not know it yet. You will know when the losses wipe out your trading capital.
If you are trading based on some paid packages you would have noticed that by the time you entered as per an advice, the price has moved so much that it is close to the target price or even exceeded it. Sometimes the tip provider advice you to exit from the trade even before the target is met. But the call comes so late that the price has already crossed your entry price, which means if you exit, you will have to book a loss on the trade. There is no use of a tip service if the tip gets to you so slow that you cannot act on it to profit from it. But no matter what happened to you, the tip provider will be listing this as a successful trade.
Sure Shot Calls, Jack Pot Calls, HNI Calls etc are some common tip service package names for which you may have subscribed. Unless its god whom you have taken our service from, no one can give you Sure shot or Jack Pot or any other sort of calls with 100% accuracy or near 100% accuracy, consistently over a significant period of time. If they claim it ask them to show it free of cost to you.
Its an open secret that many websites catering advisory service have fake information including the performance trade list, profit matrix and even the listed SEBI registration number. Its also not uncommon to find impostors, who contact us over phone representing some legitimate SEBI registered advisor or analyst. Easy way to check is to ask them to give their trading history report from broker and show you the real SEBI registration certificate.
We have never seen any service provider giving out much trading system performance metrics beyond accuracy. May be they themselves do not know. If they do not know, how are you the customer supposed to know. If you don't know, how on the holy earth are you going to know what to expect trading their system, after paying your hard earned money to them.
Our company founder has been personally duped sizeable funds by fraudsters in service subscription and trading based on their paid and free services. These experiences in his life inspires him to work for your financial freedom through this company. If you have read this much, then you have done well. You are less likely to loose money trading paid advises.