Stock Market Business Tricks/Gimmicks(Cheats?)

SaravananKS

Well-Known Member
#1
Dear all,
We all trading in stock market all of us targeting only one goal ie to earn money from an investment. Whether one is new trader/investor or experienced all of them can not avoid this greed. It is very rare to see an exception. OK but some people trying to get profit from this traders weakness.

We can easily find this king of people’s in following List
• Brokers/sub brokers(Or their marketing executives)
• Financial advisers/Agents
• Technical Analysts/Strategy Educators
• Financial web sites
• Online Groups/forum

In this thread I want to share some of my experience from these people My Purpose of this thread not target any person/Concern/Forums. but how they are making money using trader/investor ignorance..
I request from member to share their experience about this we will concentrate more on tricks how they are making money (Name is not important) it would be great help for all other members who can avoid these type of gimmicks

The Main Purpose of this thread is to give a knowledge to differentiate which one is gimmick and which one real

I request all members to avoid to target any single person/firm at least in this thread

I want build some dictionary type short word for reference purpose. for example if mention Caller Trick then one can under stand the details of which given in next post.

So we can interact quickly about these type of gimmicks
 
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SaravananKS

Well-Known Member
#2
Caller Trick
This is a typical trick which is adapting by most of call providers (usually Intra day Calls)

To explain this trick look at below chart. At A Point Silver made clear 54652Low @ 8.40 candle and Immediately it Bounced Back. at 8.50 PM it was trading around 54800. That time the subscriber Received a Buy Call [Buy Silver @ 54690 SL 54590 ]

Though the call Provider Tells Buy only @ 54690 The rate never traded after that call.But the call Providers Puts This Call as valid Call and includes it in their performance report.

This is most common Trick adapted many false Trade call service providers where the Subscriber will never make money. Since most of them sending through SMS they claim as is SMS Delay.

any Other Tricks??
 

Rish

Well-Known Member
#3
Select 10000 client list, send SMS 3 days free trail

1st Day

to 5000 clients send Buy call
to 5000 clients send Sell call

2nd Day

2500 clients send Buy call
2500 clients send Sell call

3rd Day

1250 clients send Buy Call
1250 clients send Sell Call

after 3 days trials, even if 100 clients are trapped, good enough.

This is big MAFIA scam in Delhi and Ahmedabad, running office like BPO.
 

SaravananKS

Well-Known Member
#4
Select 10000 client list, send SMS 3 days free trail

1st Day

to 5000 clients send Buy call
to 5000 clients send Sell call

2nd Day

2500 clients send Buy call
2500 clients send Sell call

3rd Day

1250 clients send Buy Call
1250 clients send Sell Call

after 3 days trials, even if 100 clients are trapped, good enough.

This is big MAFIA scam in Delhi and Ahmedabad, running office like BPO.
Then We can name it as Mafia Scam:)
 
#6
RELATIONSHIP MANAGER

Most of the national level brokers have Relationship Managers or RMs as they are popularly called. These RMs are recruited by the brokers on profit sharing basis. So if RMs generate a brokerage of Rs 1 Lac he gets 20,000 as his share in profit in addition to the salary of 8000-10000.

These Relationship Managers have nothing to do with good relationship with the investors. Their only job is generate brokerage by ANY means. Most of them are semiliterate 10th pass types who talk big as if Rakesh Zunzunwala takes his tips from this RM every day. These RMs will first ring you up and will tell you a trade, then with your permission they will put the trade on your account. Later they start taking your permission as granted and will go on trading on your account. If a RM is a good trader, he will not waste his time doing this stupid work under pressure from brokers to generate maximum brokerage.

The result is almost sure. These RMs will finish the investors account.The investor cannot complain as he is getting his contracts every day ( which most investors dont open and see ).Investors initially feels thrilled that a RM calls him...but starts crying foul when the account goes deep in red.

This is the biggest fraud going on in all national level brokerages. In fact I visited a large broker's office and I saw more RMs there than the traders trading .......

The next big fraud is running the account or managing the money....will post about it later.

Smart_trade
 

Rish

Well-Known Member
#7
Circular Trading, transfer money from one a/c to other binami account owned by employee of the broking co.

Low liquidity stock can be traded in circular trade and money is getting shifted to one a/c to another a/c.

If any account not operated, money is lying, then that a/c will be finished by the culprit working in broking office, literally i have seen a RM is doing this, one big office (S.... C...) having HO in Secundrabad.
 

SaravananKS

Well-Known Member
#8
SCAPE GOATS

These People are spread in all Places. Previously they were traders who lost their total assets in stock market. then they became remisier for survival in life.
let we call them as Scape Goats.

it is very hard to differentiate between a trader and scape Goat since they trade along with traders.

Let me to share my experience with one of my friend.

personally I know him for few years. though I know he is not successful trader I thought him as a matured trader.

one day he approached me to Open a trading account with one newly started broking firm. Initially I ignored him as i was comfortable with existing broker. But he continually offered with attracted broking charges and exposures..

At one stage I opened to trading account due to his compulsion. for some period I used to trade some trade for a courtesy......

one day he approached me with new proposal that is he got a high confidential calls from some people in chennai he also told that they are doing PMS service to some high level Politicians also.

and all calls are sure shot calls.I never showed interest these type of offers...

Again he approached me with different root. By that time I was Planning to start a trading office with some tested system, as I had proven trading systems.
since Running expenses of trading office exceeds my trading income I was searching for some serious traders to share these expenses

Knowing my weakness He approached in different way he told that he will introduce me with that political group people as they are having large amount and promised to promote my systems to that people.... he encouraged me as "we will work together on profit sharing basis"

on another day He showed some performance trading report of that group people which was far better than my systems performance. He told that we can that calls only for Rs 10000/- and asked me why we don't try this one??

at one stage he even promised to pay 50% if any loss occurs from these calls.as that stage I was interested his alliance as he looked like very good contacts which can be use full for my trading office... at last I agreed to subscribe their call with a investment of 2 Lakh. Still I had some doubt about their calls So I Decided to invest only one lakh ....

Since I was busy in my own business and own trading I asked to follow the calls. in evening I used to verify trades via contract notes as well as ledger balance


They traded in my account in very tricky manner on such way it is was very difficult to get ledger balance via hedging

( Like sell nifty @ 5950 and sell 6200 PUT)

one Stage I was very doubt about their trades I asked them to close all the open Positions.

Then Only I Realized that the one lakh capital became 70K with in 15 Days

Though My Friend is Promising to give the whole amount Loss 40k I Still doubt about his promise as he is struggling for survival


hardly what he gained from all these attempts??...
May few hundreds as commission ..

I call these type agents as SCAPE GOATS

Lesson : Avoid these Scape Goats even though they are very close friend
 
#9
Actually because of all these things happening brokers KYC is becoming bigger and bigger. SEBI or exchanges are insisting that everything needs to be signed by client even their email a/c needs to be mentioned that they have only opened it and not by somebody else. I just thought I will list out some steps taken by SEBI / Exchanges to prevent all this:
1] You can verify your trades on the website of exchanges
2] Trade confirmation alerts directly from exchanges by SMS
3] Compulsory settlement of accounts quarterly
4] SMS every time there is a movement in your stocks with DP
5] Mandatory signing of Do's and Don'ts in the KYC which lists out all the things you should not do.
6] In the commodities KYC the client has to compulsorily reproduce the following in his own handwriting
" The above declaration has been read and understood by me and do hereby take full responsibility for the same "
Unfortunately people do not have the time and inclination to read and understand the documents that they sign and probably land in trouble

These are some things that I could think of. Maybe others can add .
The problem ultimately also lies with the individual who thinks he can make money easily in the stock market without any self study and relies on tips - paid or otherwise
 
#10
Actually because of all these things happening brokers KYC is becoming bigger and bigger. SEBI or exchanges are insisting that everything needs to be signed by client even their email a/c needs to be mentioned that they have only opened it and not by somebody else. I just thought I will list out some steps taken by SEBI / Exchanges to prevent all this:
1] You can verify your trades on the website of exchanges
2] Trade confirmation alerts directly from exchanges by SMS
3] Compulsory settlement of accounts quarterly
4] SMS every time there is a movement in your stocks with DP
5] Mandatory signing of Do's and Don'ts in the KYC which lists out all the things you should not do.
6] In the commodities KYC the client has to compulsorily reproduce the following in his own handwriting
" The above declaration has been read and understood by me and do hereby take full responsibility for the same "
Unfortunately people do not have the time and inclination to read and understand the documents that they sign and probably land in trouble

These are some things that I could think of. Maybe others can add .
The problem ultimately also lies with the individual who thinks he can make money easily in the stock market without any self study and relies on tips - paid or otherwise :)