A new profile has come into being in the name of ;online advisors; since recent times. They are in the practice of sending sms or on-line messages like – ;Stock market tips offered free of cost for six months; and ;Shifting to premium package plan is available any time;. Ignorant and gullible investors are easily cheated by these false and misleading advertisements. In fact, some informed people do wonder why these on-line advisors themselves do not invest their money and earn the stated super normal profit. Above all, these on-line advisors take the vital decision by tossing the coin which is astonishing and shocking.
The modus operandi is that at first stage, they will gather around a lakh of small investors; contact details like their mobile number or mail ids. Secondly, they will divide them equally and send sms to the first 50% of investors that the market situation will enormously be up in a particular month and to the remaining 50% of investors that the market will face a downswing in that month. Of the satisfied 50,000 investors in this exercise, they will choose and divide them into 25,000/25,000 and start the ;tossing of the coin; exercise as the next stage.
Thus the number of such investors would gradually reduce to 1500 in about six months and they would have been benefited by their tips. As a consequence of this, these 1500 investors would continue to believe the on-line advisors; advice in a blind-folded manner with least hesitation. This is the golden moment for the on-line advisors to trap these 1500 investors and they will cunningly introduce their ;premium package; plan which is their prime motive. Having been trapped, these innocent investors would not have any second thought to do whatever the on-line advisors want them to do. In the process, these investors would slowly lose their investments fully. On the other hand, the on-line investors would continue their exercise of luring the next lot of one lac retail investors with the new name and mail address. It is imperative on the part of retail investors to study the market and devise their own plan carefully so that they will not become an easy prey to the on-line advisors. Similarly, if they have any doubts, they must approach the qualified and professional and SEBI authorised analysts for necessary clarification. Needless to add in conclusion that if one is greedy to gain abnormal profit in the short run, they are bound to face loss only, in effect.
(This article written in Tamil by K Ramalingam Chief Investment Advisor, Holisticinvestment.in for Naanayam Vikatan magazine dt 12/8/18 has been reproduced in English by P.S.Ramamurthy)