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Dark secrets of Stock Market, You MUST KNOW!

  1. There are some unknown wealthy people somewhere, who actually drive the market, you are just a smallest part of this game.

Ex-

Date: 16 April 2018, The India Meteorological Department (IMD) forecast a normal monsoon at 97 per cent of long period average for the country.

For you it is an ‘ENTRY TIME’ to accumulate monsoon affected stocks. Media, news channels, they will scream BUY-BUY everywhere.

For those unknown ultra wealthy market drivers, its time to book the profit and offload the remaining food for you. They knew it much before than you can ever expect.

Most of the seed based stocks already rallied 10–20% just a week before news was officially announced.

Is it a co-incidence?

2. Every time stock prices jump just before the announcement date of their quarter results. SEBI is still searching why it happens and till yet they could able to track only few of them.

In a stern warning to companies for leakage of key financial details, market regulator SEBI warned that all those responsible, including auditors, would face action and the rules would be strengthened if required.

Case is still open and people don’t even remember it.

3. It became a common trend to SHORT Pharma stocks whenever USFDA issues observations. Insider traders take advantage of it and we poor retail investors always get trapped by overnight news.

Don’t feel sorry for not buying this stock a day before.

4. The actual reason why you just should not follow these news based stock experts.

-I don’t know who made this man ‘An Expert’ (Observe the recommendations closely).

5. What happens when you invest in stocks based on only its bottom line numbers.

Ex- in 2009 the market capital of Vakrangee was 50 crore, by the end of 2017 it was 50,000 crore.

This profit machine mixed in soil of probe where government found that, this company was actually manipulating the price.

Today is 18th April 2018, and Vakrangee locked with upper circuit. Nobody knows who is buying or selling.

The company has lots of things to observe, See the financials, concentrate on ratios and margins, compare with peers, study about promoters, keep an eye on liquidity, make sure you know the debt, know future plans, forecast the scope, speak up with indicators and press BUY button. That's how your wisdom will save you from a massive destruction.

All the best!

( Author is SEBI Regd. Research Analyst)

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