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  • Category: Miscellaneous

    Isn't it very easy for value investors to make money in the stock markets?

    Whenever value investors like Rakesh Jhunjhunwala or Porinju Veliyath buy some stocks, the prices of those stocks skyrocket immediately for the next couple of days. I see some of their recommendations are highly risky as the underlying companies are highly debt ridden. But they buy those stocks based on some assumptions, which may or may not work out. Retail investors blindly follow them. The prices of some these stocks get doubled within few days purely based on their recommendations but without any changes in the fundamentals of the companies. In this context, don't you think it is very easy for value investors to make money in the stock markets?
  • #617012
    Eventhough lot of interpretations and analysis can be given to justify the rise and fall of stock prices,still I believe that there is a definite influence of deliberate manipulations too. A coterie or syndicate if decide, can play with the stock prices.
    Though there are some shock valves like circuit breaker(in case of less exposed small stocks) the same is not there in the case of the top stocks. Moreover news is made and spread by the large value traders. By the time it reaches a retail investor, the profits would have been mopped up and loss will be ready to get spread and shared by the small retail investors.

  • #617050
    Benefiting from buying and selling of shares is the pure gamble and only alert customers can do so with great precision to earn. One of my relative is very wise on this matter. He has invested 50,000 initially in the shares of some 12 companies and parked them with a on line broker who is famous and reliable. The broker gave him the app. Every day my relative would be watching his shares moves in the market and give standing advise to sell the same as soon as it makes just 200 rupees profit. That's all, he is doing this business with cool mind and never lost so far and gained 94,000 so far which were invested again.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #617112
    You are thinking like most people who trade shares by observing and listening to these experts. I'm glad that you have pointed this out. Now a days everything finance channel talks in Greek and Latin and give breakup of many companies and yet exactly we see what you have mentioned. For no reason the price goes up. There would be a group of heavy hitters or promoters who can manipulate the 'perception of the stock' and be sentiment the price goes up. Many gullible people blindly follow experts and invest to make some money and loose a lot. Many books quote trading stocks and shares needs a high level of discipline similar to the army life. One has to be extremely disciplined to allocate time to learn, monitor the trends and not get very greedy. I've known people who do not bother much and the market factors in the long run, the moment they hit a gross profit of 15%, they sell the share however good or bad the market it and religiously stick to their plan of sell, take the profit and re-invest the principal.

  • #617235
    Allways there will be a manipulation. As expressed by Venkiteswaran, there will be a syndicate who will try to manage the shares. The concerned companies will play many tricks in bringing up their stock prices. If they a bag an export order which is a very small one also they project and inform stock exchange that they bagged an export order and then it is a pilot order and once they supply that they will get a very big order. These exaggerated statements will give a push to the share value. Many Organisations play around legally to show that they are making good profits and try to increase the value of their shares. The profits that are shown also sometimes managed figures. The Chartered Accountants and Finance managers will have a good knowledge of these adjustments and makeups.
    always confident

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