Article by Sherin Dev; Follow me on Twitter Turn the pages of business dailies and magazines. You may find lots of stock buy and sell recommendations in most of the pages. More over this, if your email registered with any business websites, you will start getting constant recommendation mails to your inbox regarding buy and sell stocks. Beginner investors generally become the victims of this style. As I have written earlier, stock recommendations generally happening for traders, a kind of gamblers, than real investors. Real investors generally never mind such mails but do their own research to identify right stocks to purchase or sell.
I don’t believe stock analysts reports and tipsters recommendations in any way. If you dig to the history of stock market scams, you may find the stock recommendations happened before to the scam identified. What would be the possible intentions to such recommendations? If you are new to the stock market investing line, this article may help you to understand some of the background plays of this activity.
Stock recommendations generally give by brokers to their customers time to time. Of course, this would boost their business by prospective traders who buy these shares in the next moment with an intention in mind to become quick rich. Brokers thus get handsome brokerage during the purchase and sell through their facilities. Another hidden secret behind the stock buy could be with an intention to raise the price of a particular stock to off-load the stocks which holding by the recommendatory. Or, someone can recommend a stock to public with an intention to help others to raise the price of the stock to off-load clients holdings. Both way, this would affect poor public and beginner investors, ultimately they are going to be the biggest loser. In the same way, stock sells recommendations also happening. To buy a particular stock, the price of the stock should come down. Stock sell recommendations with ignorant investors and traders could be able to play a best role to meet the goal of manipulators. Once investors start selling the stock, the prices of stock come down and manipulators can take that as opportunity to buy more stocks in a less price. As a prosperous, intelligent investor, one should identify all the background plays happening to the stock markets and those who associated to the market. This would help to escape from intentionally created traps by manipulators. There could be lots of wrong plays happening in this area. If you have realized, experienced or have an another idea in mind, most welcome to comment here for others to get more awareness. Or, even comment on my thoughts to share your thoughts.
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