Dark trading fraud that every retail trader should know before start trading : the Indian stock market Trading fraud

INTRODUCTION TO THE INDIAN STOCK MARKET

The Indian stock market is one of the rapidly growing stock markets in the world. It has various financial instruments, including equity/share and derivatives and commodity market. The two main stock exchanges in India are the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Some most famous brokers in India include zerodha, angel one, fyers, up-stocks and grow etc.

India's stock market, trading, dark frauds

I’m sure you have heard about many scams like Harshad mehta, Ketan parekh, Satyam scam and all but today you will know some small but impactful trading scam that can destroy retail trader career in stock market.

  1. Tips and calls : Tips & calls are the buy/sell recommendations generated on the basis of technical and derivative data points but some advisory firms and telegram groups make it their business to give false signals to make money and trap newbie trader.
  2. Pump-and-dump : It is a form of fraud that encourages retailer to buy shares in a company to increase the cost of the shares artificially. It can be used to boost the price of a stock through recommendations based on false or misleading information.
  3. Fake P&L : After the wave of covid-19, many new traders entered in stock market with the dream to make money but 90 percent of traders fail to make money when trading the stock market and here comes fake trading guru with their fake profit loss screen shot and we are talking about very big fin-influencer who have more lakhs & million followers on YouTube and Instagram so its very hard to get right mentor in today’s era.
  4. Insider trading : Insider trading is an unfair conduct in which the lack of critical insider non-public information places the other stockholders at a significant disadvantage. But in other circumstances, if the knowledge has been made public and is available to all interested investors, that will not constitute illegal insider trading.

CONCLUSION

The India stock market is flooded with many frauds, be aware

These are some frauds that are still running in today’s time so if you want to succeed in market don’t buy course, avoid tips and calls. Fake screenshot and fake fin-influencer are doing scam in market openly. Use free data available on internet like zerodha varsity google article free YouTube videos and of-course some trading on chart pattern and psychology.

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