Update: This is a Knowledge series post. Since the Valuation change it is No Longer a Multibagger in our view. You can check other stocks from our latest Multibaggers pack.
Futurecaps is a SEBI Registered Research Analyst providing Multibagger service to Indian Stock Market.
Some of the subscribers raised a question to us: Why cannot we provide short-term Options & Futures tips?
Our simple answer is: “We don’t want to be Frauds!”
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. 🙂
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.
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? 🙂
“Are 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? 🙂
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! 🙂
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. 🙂
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.