I was quite active in Quora for a brief period of 30 days. But I stopped writing after noticing that some people buy based on the answers blindly.
Don’t follow blindly anyone!
The most tragic part was I never wrote the part when to exit which must have caused sheer pain to many fellow traders who align with my thoughts and opinions and just bought the stock being manipulated by the answer.
Probably some of them had hefty earning and someone them had me killed in their mind over dozen times. No!
The case of CUPID
On the date of 10th October, I recommended to buy the shares of Cupid in this Quora Post. I asked to buy around 290.-300.
I was targeting to buy at 295 and the trading opportunity came around the next trading day where it touched 295. If you see the answer I was already holding 500 shares.
I also mentioned “These are my current holdings of my short term account. I am currently buying in every dips of Cupid and selling at a decent level and praying to God to make it come down due to some correction or this and that so that I can buy again. 🙂
I also wrote that I was targeting it to touch 600 in next 30 months. But well, I do not have patience for that in short term holding. I added 4,000 shares more on the day of 13th October. I did a DCF analysis showing the ‘should-be’ stock price that time had to be around 410. So I was targeting to sell them around 355. (410-290 = 120 ; 120/2=60 ; 295+60 =355).
As It is a damn strong resistance.
I sold it at the top. You can verify here where I wrote I have sold my CUPID stocks I had 500 shares of CUPID bought at 284.50 as well as 4,000 shares of CUPID at 295. As I have sold them at 365, the profit was huge the day of Muhurat Trading. I nailed it at 365.
e (365-284.50) *500+(365-295) *4,000 =3,20,250 INR.
It is currently trading at 288.
I am snapping about 1,000 shares today and may snap more irrespective of its increase or decrease. I didn’t mean you to buy it, I recommended this one as I am going to buy this too based on some fundamentals and theories I believe in. If, you are buying on reading my answers, you need to read every single post I make on internet to stay tuned for the exit unless you understand it yourself. I receive average mails of 600-700 a day; and considering I reply to each mail giving my 5 mins; I am stripped of my time; so I might not see your mail at all.
Your money. Your loss.
Take Profit or Stop Loss gets pivoted. I shifted it from 355 to 365 as their quarterly earnings was far more awesome than what I had calculated myself.
ET Markets Recommendations
Here is one thought based on ET Markets Recommendations. ET markets are very good to pick ‘volatile’ stocks. Though they do not pick. They list calls from other important ‘pickers’.
Let me tell you a story of my Samvat Trading –
Have you seen this news? 10 stocks to buy during muhurat trading – The Economic Times
Never heard of this company previously. I looked up and found a jewel –
The company reported a 15.9 per cent year-on-year (YoY) fall in net profit of the quarter ended September 30 to ₹ 37 crores.
I shorted 1k shares!
Still unsure why ‘Yes Securities’ chose to backup this stock with technicals when it was suffering with a strong fundamental bad news.
Most of the companies whose stocks are recommended there move with high volatility because networks like ET Markets is the greatest source of speculation for novice traders.
They don’t give a fuck
Some analysts pay the channel to get featured there. I made a rigorous excel data research which is complete with an extent of 82% till January 2014 which means my code missed 18% data. But 16598 records are a reputable record!
It concludes their choice of stock recommendation move the volumes to a noticeable extent. Thanks to their viewership!
I notice many strange stuff like this –
JM Financial Has Buy call on Mahindra & Mahindra Ltd. with a target price of ₹ 360.0. The current market price of Mahindra & Mahindra Ltd. is 1411.0. How can I make a profit buying at 1411 and selling at 360? It is not typo too. It was not meant 1360.
Yes, you read it correct!
They do not give a fuck on what you buy. All they care is their TRP.
Say No to Broker Calls
I got a question, “What is hidden motive of trading companies behind training students to give predictions about how market will change?”
The motivation is simple and it applies for every people – Money.
Most Trading companies are themselves the broker or they are affiliated with a broker. They will make you sign up while you’re learning with them. So when they give the tips and you execute them being greedy; the brokerage charges i.e. Profits are shared between brokers and companies.
That’s hidden motive. But sometimes people give tips to manipulate a stock in large scale when they have a huge audience target.
They might make pages long of reports which are basically nonsense most of the time. Here is the Angel Research Report of Axis Bank published in 6th October, 2016
The stock of Axis bank was falling back then rapidly. No good fundamental news. Here is how it looks now. It’s being traded at 472. It would have been a perfect Sell call though. Imagine buying 100 stocks at price of 536. But Angel Broking got their hefty brokerage fee as many traders (read speculators) would act based on the report.
This share market advisory business is a hub of scammers. Please do not pay anyone anything. In Future and Options, the lot sizes are big and the fluctuations are huge. Many advisory firms claim they give 99% accuracy on their call but why they are doing it for themselves and make millions.
“If they are so good on trading, why they are not trading themselves instead of sharing advise”.
There’s not a single advisory business with good customer satisfaction.
Making a question in Quora regarding stock market creates lots of traction. An anonymous posted a question “How can www.punteraction.WordPress.com predict accurately about Indian stock markets?”. Here is what I wrote –
It’s a scam business as far as I can think of. But here is how you research –
There are no results posted anywhere and you have posted this question anonymously. The twitter handle Punter Action (@Punter Action) | Twitter made it first’s tweet at October 4 and the site has barely any visits as I have monitored using Stats.
The Phone number listed there belongs to someone who is saved as “07688985929” and he lives in Rajasthan. (https://www.truecaller.com/in/76…)
There is no mention for name in the bank account, so scammer thought that a person will call before he takes a decision. But from HDFC Bank’s reverse API, that account belongs to Ashish Sharma
This guy has never been to Rajasthan and he will not certainly do a blog like that. Then I searched ashish sharma rajasthan Equity cause Equity is the next most dense keyword. I got this guy but he is not scammer too cause I found him in angel list with an another LinkedIn profile of him. He has a https on domain. So he knows how to get that.
He is not in a mood of making a side business of scam.
So this guy is nowhere.
So, Mr. Anonymous. Are you Ashish Sharma trying to get new customers? No offense, just inquisitive.