Archive for December, 2013

Short-Term Tips Providers are Frauds!

December 28, 2013

Some of the subscribers raised a question to us: Why cannot we provide short-term Options & Futures tips?

Our simple answer is: β€œWe don’t want to be Frauds!”

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Let us put our thoughts on how we concluded like that.

Money 4 Money

People sell service or products to earn Money.

People won’t sell Money to make Money!

For example: A Hotel sells food & earns money.  Hotel cannot directly produce money from their kitchen. πŸ™‚

What about Tips Providers?

The Daily Trading, Weekly Options & Futures are Tips of Very-Short-Term nature.  Some of the providers even guarantee 50% to 100% returns in very-short-term.

If they are sure of making 100% money on a capital, then Why they are selling them?

  • They can use the tips to trade themselves & make money. Right?
  • Why they do not they trade themselves?  They are not sure of their tips.
  • Then, why they are selling it? People are greedy out there to get rich quickly.

πŸ™‚

Compounding Logic

You can take the simple example, You are sure that a Tip-Provider will be having 1 Lakh Capital to start the business, Let them be ambitious about their tips providing 100% returns in a month – which is guaranteed by any tips-providers over India. 

Now see the calculation below:

Jan > Started with 1 Lakh > 100% Gain > 2 Lakh

Feb > Started with 2 Lakh > 100% Gain > 4 Lakh

Mar > Started with 4 Lakh > 100% Gain > 8 Lakh

 

Apr > Started with 8 Lakh > 100% Gain > 16 Lakh

May > Started with 16 Lakh > 100% Gain > 32 Lakh

Jun > Started with 32 Lakh > 100% Gain > 64 Lakh

So in 6 months the money multipled 65 times.. In another 6 months it is 3.84 Crores

After 1 Year they have 2 Crores after Tax.  They can buy a BMW and roam around. 

Every 5 Years, You will see Mighty Millionaires than Ambani!

Why they are not doing so? πŸ™‚

β€œAre Bhai.. They are not sure about their food.. They wanted customers to eat it!”

Some Tips Providers justify that they are doing a Service!

Then, Why they are taking fees? Service should be free. Right?

If they wanted to send money to the world, Why cannot trade themselves, make money & distribute to the world? πŸ™‚

Equation Problem

If a=b+c; then b should be a-c.  Right?

Truth about Trading, Options & Futures

It is a true factor that we were involved in trading with our-own software.  During 2009 we made 1000% returns through the signals, but the further signals were not fruitful.  Trading is affected by technical as well as news-factors.  Software cannot interpret News! πŸ™‚

Trading, Options & Futures requires Dedicated time, energy & infrastructure to track elephant-moves of the market.  Clearly, we do not have such resources now & cannot provide Short-Term tips. 

At the same time, beware with your tips-providers too.  Ask them these questions. πŸ™‚

Summary

Short Term Tips Providers are mainly frauds. Keep an exit limit of capital & do not over-trade.

Many of the Tips Providers today were using another company name few years back.  They are looting people over the years through different names.

Deviational Thought > Long Term Tips Providers have higher authenticity.

Long Term Wealth Creation is the original purpose of Stock Market.