Hope you all are doing well and minting money in the stock market. If you are a regular visitor to this blog, you would know that I follow certain Methods of Investment in Stock Market which help me to maintain a diverse stock portfolio on my own terms and analysis. I am writing this article to make sure all my friends take precautionary measures and stay alert about any non-positive stock calls or messages from promoters as well as operators.
How promoter messages and fake stock tips are sent to mobile numbers for free?
At some point of time, you would have received some SMS asking you to buy some stock in bulk with positive claims of it reaching new highs in future (short to long term). Such messages are sent randomly to lots of phone numbers to generate excitement about a particular company stock. The tone of the messages is kept so positive that few retail investors start believing in them. Also, the fact that these messages are spread across cities to different phone numbers makes retail investors believe that the stock is indeed good as they keep hearing about it from others as well. All this leads to a small rise in the price of the stock and watching this even those investors who were hesitant at first, start buying it in bulk to gain profits in future.
The SMS messages sent sound positive and generate excitement as they specify pretty high targets for the garbage stocks. The aim of the messages is to make the reader think for sometime about investing in that stock. It is like the messages we get these days about ongoing sale at some retail store or e-commerce portal. But, in case of non-fundamental stocks, there is no such sale or discount offers. The messages are written only to get more people to buy the stock even though the valuations are pretty bad. It is mandatory that every reader here stays away from falling into such traps. Never ever believe such fake operator stock tips that are sent to your mobile number for free.
How promoters or stock operators lure retail investors into purchasing garbage stocks?
Many promoters holding stakes in some particular small company, try to push the stock price up by sending bulk SMS as indicated above. Generally, this is done to promote stocks of companies that don’t have any fundamentals i.e. garbage stocks. It gives them promotion of their company as well as helps them to make some profits after several retail investors get trapped in the stock. Prices of such stocks may rise initially to lure more investment from individual stock buyers, but, they all end up falling down to pretty low levels. Once you are trapped in any such stock, it is wise to come out of it as soon as possible.
Importance of spreading awareness about fake operator stock buying tips / messages
This trend of promoters sending bulk sms for stock buying is increasing with every passing day. Hence, it is important to spread the awareness among all stock market investors to stay away from any such stock operator SMS or tips even if you see the stock price rising initially. There have been hundreds of cases where retail investors have got trapped in a stock at 300-400 levels when the SMS was sent with the stock price falling down to below 50-100 levels in few months. I am writing this article to ensure every stock investor invests only in good stocks and stays miles away from crap stocks that have no fundamentals or technical support.
It is my sincere request to all of you to kindly share this alert message with your family and friends. This way we can contribute towards a profitable journey in the stock markets for every investor. Jai Shree Ganesh ji Maharaj Ki!