We all want to earn money but we forget that earning money is not easy. In the hunt for earning some quick money, novice investor falls prey to a very common phone stock market scams. Today I want to shed some light how some people/business are trying to trick novice investors in a guarantee of earning them some quick bucks.
Stock markets are unpredictable and a lot of investors and traders have spent their entire life in understanding the way they behave. That is the reason, day trading is considered lethal and very dangerous. It can blow up your entire capital because of some small mistake. But at the same time, it looks quite enthralling that you can earn Rs 5,000 from a capital of Rs 10,000 in just a day.
The Stock Market Scam
Certain business/person try to bluff novice investor to subscribe to their sure shot call which can fetch them guaranteed 10-20% of their capital. Usually, these people/ businesses ask 10-25k as a subscription fee for their calls. Now, how do they attract prey which can fetch them money?
In order to attract novice investor, these business/person play a game.
1. They get a database of current investors/traders who have performed some transaction in their trading account in recent 1 year.
2. They analyze the market and select a volatile stock for the day trading.
3. They group their dialing database into at least 2 parts.
4. They start dialing the number from their database. They call novice investors and inform them that they have some plans which can earn them 10-20% in a day.
Now comes the fun part.
5. They give a buy call on the selected volatile stock to the first half group and a sell call to the second half group.
6. As they have selected a volatile stock, either it will go increase or decrease in price. The investors who were able to earn some quick bucks from their recommended call will be likely to opt for the monthly subscription.
Once you subscribe to their one of the plan, they give some fake calls which have no credibility and will definitely lose your money.
In this manner, these business/people cheat novice investors in return for earning some quick bucks from the stock market. I request my readers, not to fall into the trap of such sure shot recommendation services. There is nothing like 100% guarantee of earning 10-20% from Day Trading.
Day Trading is extremely risky as it first thrills you but ultimately destroys your wealth.