Avoid BUY/SELLING in stocks based on recommendations through promotional SMS. Focus on financial performance and corporate governance track record of the company.
Many investors in equities receive text message on their mobile phones at regular intervals. Indeed short message service (SMS) is a very inexpensive and easy option to spread rumours and communicate recommendations to the target audience. Dispatching text messages over mobile phone cost as low as seven paisa to five paisa per message. Moreover, getting the database of investors is also not a very difficult. Another advantage of using text messages over mobile phone is the speed at which information, or rather mis-information, can be spread among the target population.
It is common for investors to receive SMS providing price-sensitive information or rather rumours. In most cases, the objective is to drive up stock prices and to hammer them down. Usually this is the work of small operators with limited clout in the equities market as they do not have the financial clout of big operators.
Many business people use TEJI IN MARKETS to make such easy money by operation tips or advisory dotcom and sms service. When you go to their ABOUT US page in website they all have almost common texts. You don’t see any responsible persons’ name or name of owners or analysts. Most never give any type of charts or research report or original analysis. Why? Smiply Because they don’t have any analyst!
A RECENT PROGRAMM ON CNBC CHANNEL EXPOSED SUCH COMPANIES AND PEOPLE DOING SUCH UNETHICAL AND UNFAIR PRACTICE which has caused many people lose several thousands and even lacks of rupees, just in hope to earn more money out of trading.
The point is don’t go behind every dotcom company/website and sms service providing tips or trading recommendation WITHOUT INQUIRING REGARDING THE OWNERS OF THE DOTCOM SITE/COMPANY OR SMS SERVICE AND MORE IMPORTANTLY THE ANALYSTS THERE. ALSO CHECK THEIR BACKGROUND. (also read this article in this regard). Further it is our personal suggestion to take advise of only such people who also do fundamental analysis on regular basis and are not just providing only intraday trading tips, because with the advent of advanced soft wares, several online portals, broking companies’ inbuilt charting and trading software it is easy to issue trading calls and tell oneself an analyst. Many text messages are carefully drafted. Though these messages are spreading rumors, they generally attribute the news to “value-buy”, "sources", "rumors", "market talk”,” big-order win” take over buzz”.” bonus issue”, private placement”, and so on. Certain SMSs are typically market pitches that go to advertise particular scrip’s aggressively.
