Top tips providers and insider traders in India

Top tips and recommend providers in India

There are numerous tips and recommend providers available in India but we can say none of them are providing correct tips. We can easily search which tips and recommend providers are fooling the traders. The traders who fear about the market is more and these traders are become a prey for those tips and recommend providers. The tips and recommend providers easily earn more by providing tips than trading so they are choosing this path. We can’t blame the tips and recommend providers, but the traders should have the mentality to learn more about the market, but the traders feel that to path to learn the market should be simple and by this they are not finding the way how to succeed in the market.Star 3

The tips provider who says that their tips will be 90% accuracy and 95% accuracy will not show their trading statement or their clients trading statement. If they are not showing their trading statement the trader should ask for that. Here most of the traders are trading using the tips from the recommend providers. But most of the details are available on the website itself. The traders who do not fear about the market and who follows their own strategy by learning the market are succeeding now. These traders do not depend on any tips or recommends. Learn about the market, but do not spend more for that.

What is insider trading?

Trading a company stock by knowing the information of a company before known to the public is called as insider trading. Most the promoters of the company or the relatives or friends will come to know about the information of the company before the public and they will involve in the insider trading.

When insider trading will happen?

When a company’s quarterly result is going to be announced or when a company gets an order or when a company is going to provide dividend or providing bonus for the share there is a chance for insider trading to happen. The insider traders will trade the stocks according to the announcement to be made by the company. By knowing the information they will trade the stock accordingly for gaining profit.

How to make profit from Insider trading?

Assume a stock is trading at 100 rupees. The company is about to make the announcement of quarterly results and it is going to be a bad news. So the stock will come down from 100 to 75 rupees. The ordinary trader will know the result only after the announcement of the company. But before announcing the company’s promoter, director their family and friends will know about the result. So they will sell their shares when it is trading at 100 rupees. When it is trading at 75 rupees again, they will buy the shares. By this way they will make a profit. In the same way when a company is going to announce a good result, they will buy the shares of that company and when the result has been announced the price of the stock will rise up and at that time they will sell those shares. Suppose if the stock is trading in future and option they will make a huge profit. The insider trading is illegal and SEBI has the rights to punish them.

Insider Trading in India?

Not only in India the insider trading happening all over the world. Even a bigger company will be affected by the insider trading, but mostly the small investors in the market will be affected by insider trading and that too in future and options if that stock is trading the small investors will be affected heavily and even they will tend to skip out the market for the entire life. As the profit is more it is hard to control the insider trading. Considering if there is a company then it will have management and it will have group of members and so surely the information about the company will be leaked. By this the insider trading is happening. The insider trading is hard to control or to eradicate.

Updated: March 31, 2015 — 11:51 am
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