You subscribed to the best stock market tips and they still don’t work for you? I know why and let me share why those stock market tips did not work for you.
In my article on PowerYourTrade Review many readers suggested alternative solutions to PowerYourTrade service and my answer was pretty much the same for all of other stock tips providers i.e. stock market tips don’t work. Let me share why stock market trading tips don’t work but before going into the details of why stock tips don’t work let us understand the type of stock tips.
Types of Stock tips
There are 3 major types of stock tips floating around.
- Fundamental
- Trading (Intra day or buy today sell tomorrow)
- Positional
Fundamental Tips– Fundamentals stock tips means that fundamentals of the company is improving and so you don’t need to be buying the shares immediately and you can have such stock in the list of buy items and once you think stock is at the right price of good support levels or strong break out levels, you can buy.
Trading Tips – For intra-day trading tips understand one thing which is – Are you acting on the trading tips when everybody else is? When a stock tips is shared to large number of subscriber, everyone would act on it and may inflate the price of the stock. If you also do the same you may be buying the stock in a spike which means you would not be able to make lot of money out of the news and so it is important for you to understand that you not only read the stock tips but also understand how and when you should be buying that stock. The idea of morning spike pattern described in my book pretty much works for such news inflow and you need to understand how to play them.
Positional tips – Positional tips are for the time frame of few weeks to a month and in such positional tips you have to understand the underlying basis of the tips. Is the result of the company expected to be good, or is any board meeting coming up with possible chance of declaration of dividend etc. And once you know the basis of the tips you should understand that you should not wait for the actual event to happen but offload you position in the run-up to the expectation of the event. I have explained in my book and also in how chart pattern repeats by itself where good result of good companies does not mean stock prices go higher on the result days.
These are other types of stock tips floating around as well and they are
Tips from Distant Relatives – How many times I see people are investing in equity market because some of their relative has made a fortune in market. They try to buy the same stock and yet cannot make anything out of it because they don’t understand that it is not only the name of the stock that matters but level at which you trade also matters a lot.
Email Spam tips – There are hundreds of thousands of free email scammers that give stock tips via email. They will send an email to thousands of people to try and push the stock price up and so if you react on those stocks, you will be trapped.
Insider Information Tips – I believe in one thing which is I be the last person to know any insider information of a company because the owners and large players have more chances of knowing that well before time and then possibly the reporters and then it is we the retail investors and so if you know how to play the insider information based on price action, you can be safer in the market or else yet another way to get trapped.
Why stock tips don’t work for you?
When people subscribe to stock tips, they tend to trade blindly based on tips and then end up making no money. Avoid trading blindly believing the stock tips services.
So you can subscribe to those tips and get alerts but trade only based on your availability and if you see a perfect setup.
So the important thing to understand is – How you apply those tips and make them work for you.
Final Thoughts
Every stock tips should always be coupled with a stop loss and so if you are playing in the market on the tips make sure you also respect the stop loss as well and be ready to take the short term losses as well.
Share your stock tips stories in comments below.
Intraday trading is always risky than delivery calls or positional trading, why I have been saying because I had taken service of more than 10 tips provider but so far I have never satisfied anywhere. If you ask any experienced stock market person and consider their opinion they will deny for taking service of tips provider so they will say that better you learn technical analysis yourself or take service of genuine/ intelligent stock analyst that would be always good.
Since last one an half month, I have been trading in positional call and taking service of Manish HathiRamani(He normally comes in ET Now business channel) and fully satisfied with his recommendation, those who are interested in positional or momentum trading they can follow him and that is my sincere advice. For contacting Manish or for any more information you can call me on my cell number 09765613864.
Note : This is my personal opinion, you need to decide for related services based on your risk apetite attitude. I am a service oriented person so in case I will not pick up your call so you may send SMS to me.
A customer giving his cell number to help his stock tippers gain more members is something that does not go down my throat that easily. Are you his sales person or real customer?
Hi Shabbir,
I am his real customer. If I tell you about my self more so I am a software professional and working in one of the well known IT company(Mphasis An HP) in Pune.
I have expressed my views in your website because I dont want that inncocent people trap in to intraday tips provider and I dont want that they make same mistake what I did in past. I lost lacs of money on such tips provider’s call and on their service charges.
If you are not still comfortable , I can not do any thing more .
Perfectly fine and I am comfortable with that and as your comment looked more genuine to me was the reason it was approved but then I had my doubts as well. Thanks for clarifying that as well. happy Trading.
No Problem Shabbir, Additionally I would like to express my view for trading :
Any new trader should not directly go for trading, they need to first experienced on paper trading or virtual trading at least for 6 months.
According to my understanding, they must do and this is something I learnt from my past experience. Happy Trading!!!
Yes I agree on the paper trading thing and I recommend the same to my customers as well but then not for 6 months but I suggest them to apply my technique of trading for a week or two.
Hi Shabbir,
Even I want to avoid margin trading. Yes, I have read that post (very informative). All I want to know is, Can I buy a stock and sell it on the same day without using margin? Will ICICI Direct allow me to do so? And do you buy/sell stocks on the same day?
Thanks,
Anurag
Anurag, yes I buy and sell the stock on same day but ICICIDirect does not allow (in many cases) Intraday cutoff if you don’t select some settings when purchasing and so I don’t recommend them for intraday trading.
If you are using their TradeRacer platform the above issues don’t occur (as told to me by the sales people but not verified by me).
Thanks!
Hi Shabbir,
Can I trade intraday without margin? I am using ICICI Direct.
Thanks,
Anurag
Depends on your account but I don’t recommend margin trading unless you know what you are doing. See http://shabbir.in/no-margin-trading/ .
shabbir,you are right that though people have great love in subscribing to these stock tips,but they do not pay attention to the stop loss.stock tips are per se not bad but any one can get benefitted from them only when he knows the art of playing with the tips.stock tips should not be religiously followed but application of mind is also necessary.stock trading is a dangerous field,if trading is done without basic knowledge of technical chart patterns.there are great chance of being trapped at high price.thanks for your informative post.
Cannot agree more on this Safdar.
I could relate this to my way of acting on stock tips and I am on my way to getting your ebook Now.
Amit great to see that it benefits you and would love to see your honest feedback on my ebook.