Monthly Archives: June 2009

Investors Losing Confidence

These days the markets are mixed. Some days it sky rockets and other days it crashes. There is nothing major in the economic situation around the world but still the investors are not sure about the situation. Some feel that things are going to be fine in some time whereas most of the investors feel the other way around.

There was a big bull run in the markets from past few weeks and pundits were predicting 21k mark in the next few months and today surprisingly the same pundits have waved a red flag and they think the situation might change and the sensex might get down to 14k levels and stabilize at this level only. This is very confusing to me and I don’t want to elaborate on the pundits and their efficiency. Continue reading

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News about Shares – Part 2

Please read part 1 before reading this article further.

Just by spending Rs. 5 Lakh, the company XYZ Metals has increased the value of the company by say .5%. Isn’t it a good move? It definitely is. Now what has the broker got to do with this? Let us assume that this move was not initiated by the metal company. But the broker took the initiative and started this whole thing. So is it beneficial for the broker house? Yes it is. Continue reading

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News about Shares – Part 1

I am getting bombarded with news about shares from my broker. Every other day, I get messages right before the market starts suggesting/advising me to buy a certain stock at the market price so that it will increase in near future. I had previously written about it and my thoughts about the suggestions.

Let me get into it further. First and foremost why do they have to send a message? Doesn’t it cost the brokers money for sending me messages? I am sure it does. But why they do such a thing? Who asks them to send such messages? Do the brokers send such messages in good faith just because I am one of their privileged customers? I don’t think so. No lunch is free lunch is what corporate world has taught me and if it is true then what is this all about. Continue reading

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Broker’s Advice

I received a message from my broker telling me to purchase a certain stock at Rs. X price and the target price as per his advice is Rs. X+2 in a day for intra-day trading obviously with the disclaimer.

I was just pondering over the message. On what basis did they come up with such a conclusion? There must be many great pundits who would have worked out such a math. Anyway I was wondering what if that was not sure and they cooked up the entire story. It is possible, isn’t it? Assume that they did some analysis on the company, worked out a huge set of calculations to find out the price variation. But this does not make any sense to me. Continue reading

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Acting on Hot tips

Have you wondered what are Hot tips? A Hot tip is a insider information which is not publicly disclosed by the company and the information is leaked by someone who has such a information. This is illegal. Being an insider, you are not supposed to disclose the information; such an act can put you behind the bars. Some publicly listed companies don’t allow the employees to trade in a particular time frame. They have the trading window open during a certain period of time and then they close it. If you abide by the rules and regulations of the company I am sure you will be not doing anything against the company or its policies. Continue reading

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