Sunday, October 24, 2010

The Tip of an Iceberg!

Desperate unsuspecting traders are more than willing to tip over any tip that comes their way!

But often this tiny tip drowns them!

the reasons are not hard to find.

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The tippers never tell you that they themselves are trading on super high speed always-on lease line connections!

- that you may be in a highly disadvantageous position if you are trading by other slower means

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They never tell you that they always have auto Stop-loss bids in place in their dedicated terminals with powerful software!

- that you may not be able to trigger stop loss fast enough in case of a stampede and that there may be a huge gap between your order stop-loss price and the actual executed price!

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They never tell you that they are operating on penny brokerage plans and that their own cost of trading is peanuts and hence their net loss in case of a SL-hit is much lesser!

- that your brokerage plan may not make it easier for you to afford even a stop-loss!

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They never tell you that they have more than enough buffer funds to hold onto their losing positions if required

- that your risk may not be justified in the absence of adequate buffer funds and you may be on the road if your stop loss remains un-triggered!

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They never tell you that the client is expected to make money only IN THE LONG RUN as some losses are inevitable

- that you may be left behind if you stop trading after the loss and are expected to keep following the tips even when you lose!!!

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They never tell you how many more clients are receiving and acting on that call, and that such mass tip circulation is a favourite hunting environment for the big-pocket pick-pockets

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- that you may actually be volunteering to be a sitting lame duck for the hunters!

(This probably explains why I found majority of the calls going the wrong way after a mass tip in the media or from a big brokerage house!)

(Manipulations thru mass tipping is common these days where only the first few benefit!)

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They never tell you that their own actual exposure to that particular scrip or trade is much lesser as a part of their entire portfolio and hence a loss in this particular trade may not hurt them much overall.

-that you may be putting all your eggs in a single basket which doesn't even belong to you!

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They don't share the basis of the call and whether the tip is a copy paste from another source!

- that you may be tipping on a tip that has no or frivolous base!

(Putting your life into the hands of someone who is not even sure about his!)

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A tip is not just a simple innocent tip.

It is the tip of an Iceberg!

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