Tips are pieces of information that come from questionable sources with no known way of tracing them. The issue of using tips for profit goes beyond the issue of right or wrong. The real issue is the need to function as an independent, self-contained trader.
Once traders relinquish their autonomy by relying on tips, they might well start to work for someone else. They become, in a sense, employees of the tip giver. As a trader with a vested interest in the markets, it is better to make money by correctly analyzing the markets yourself. Then you become the master of your own destiny.
On the other hand, if you learn to make money by relying on tips, you are no longer free to trade any market. You are dependent on your source, who in turn is dependent on his or her source, and so on.
The argument for using tips is that you can take one tip and ride it all the way to several thousand rupees of profits. However, in the process of making this gains, you forget about doing anything else. You no longer try to apply fundamental or technical analysis to market situations. You no longer treat the market as business.
Good tips are given to only a few, bad tips are given to everyone. The next time time you hear a tip, think again.
That was a well written article. It is better to invest/trade ourselves instead of relying on tips.
Really good article Rajesh Sir. Thanks for enlightening your followers.
Very useful and must-read article.
Just visiting from CMF. The tips I get have nothing to do with investing. :)
But it is always easier to use someone else's work, isn't it? Well written post. Thanks for the non-tip. LOL
it is a good point. analyzing the financials is a much more reliable way of picking likely winners than trying to catch a hot tip