Tips/ Recommendations backed by reasoning.

sh50 · #1 23rd September 2004, 01:08 PM

In the CNBC investor camp couple of months ago , two people complained on how recommendations by some analysts were totally wrong. I have heard a lot about how one should do exactly the opposite of what CNBC says.

Here too if somebody gives a tip whether on fundamental or technical grounds, it should be backed up briefly by some reasoning. Otherwise anybody can talk anything. Credibility apart, it would be a good learning experience.

#2 24th September 2004, 03:28 PM

i support u on this matter.

RajK · #3 25th September 2004, 08:05 AM

I think that anyone using the recommendations from this forum should use their own discretion and risk management.

sh50 · #4 30th September 2004, 03:28 PM

That goes without saying. Whoever acts in the stock market does at his own risk. However when one recommends, at least some reasoning should be there except for perhaps intra-day trades. Even for them, the recommenders give the supports and resistances as guidelines.

We are in the age of information revolution and mass communication of which this is one medium. One presumes that such forums are to fecilitate informed decision making to minimise the vagaries of the market

jaideep · #5 30th September 2004, 08:29 PM

Right you are sh50, but who is to qualify & certify the reasoning given? So, it is back to the old adage, "You are the maker of your own destiny".

In my opinion, any tips or advice given in this forum or any other fora (any number on the net) should be taken, digested (analysed) & then decided upon for acceptance or ejection from your system.

In short, my thinking tells me to make my own decisions without being too harsh on tipsters & advisors.

sh50 · #6 30th September 2004, 09:12 PM

If Traderji does not have the time to verify and validate the reasonings, then what you are saying is true.Tips have their role and responsible tipsters would be useful- how does one check irresponsible elements? Even a domestic servant can start giving a tip after watching CNBC for some duration.

Supposing one day, this forum becomes really big with thousands of members, such tips could be a major hindrance. There will be a lot of young people with impressionable minds-then the tipsters could break if not make a lot of destinies. I know two young people who lost lakhs of Rupees last month in one shot. People try to make their destinies in IPOs but SEBI acts as a watchdog. SEBI can also take a stand that let them break their destinies. They are majors after all.

In the psychology section arun has written an excellent article on how people with misleading notions become casualties of the stock market. That is why any sort of Frivolousness should be nipped in the bud. As it is in India, we have what are called lala brokers who speak with the kind of confidence that can make a professional blush.It is the tip culture that is at the forefront(tip) of the belief that the stock market is an easy place to make money which young people fall prey to.

Mr Bill Gates has said in his books that in the 21st century only the middleman who gives proper value added service(informed knowledge worker) shall survive. You are free to draw your conclusions.

Everbody being responsible for his actions with or without tip is a general truism but that does not imply a laissez faire free for all affair.

It all boils down to what kind of forum we want this to be-

Let traderji decide or we can have a poll. If the majority is for it, I am for it. The stock market is one of the best symbols of democracy which is reflected in the charts. People should be allowed to chart their own course but the stock market is a dicey place.