Trading Based on Sharekhan Calls: A Comprehensive Guide
Many investors and traders rely on tips from various sources to make informed decisions in the stock market. One such source that often comes into question is Sharekhan, a well-known brokerage firm in India. Recently, there has been a debate about the accuracy and reliability of Sharekhan's intraday trading tips provided over the phone. In this article, we will explore the accuracy of Sharekhan's intraday tips, the risks associated with relying solely on such tips, and offer insights based on expert opinions and real experiences.
What Does the Evidence Suggest about Sharekhan's Intraday Tips?
Several traders and investors have reported that Sharekhan's intraday calls have not been consistently accurate over the past two years. Some have even suggested that relying on these tips is akin to buying lottery tickets, implying a very low chance of success. One trader described Sharekhan's intraday tips as the worst on a consistent basis, making it more profitable to invest in lottery tickets rather than follow the advice given.
It is worth noting that one of the main concerns raised is the possibility of these calls being a trap, designed to keep the client involved in trading activities to earn more brokerage commissions. This perspective suggests that while the tips are not necessarily illegal, they may not be purely advisory in nature, rather, they may serve to keep the client continuously engaged in trading activities.
Personal Experiences with Sharekhan
Much of the feedback about Sharekhan's intraday tips is based on personal experiences and anecdotes. Many traders have accounts with multiple full-service brokers who provide research calls, and among these brokers, they have had positive experiences with Sharekhan, IIFL, and Religare. However, even these positive experiences do not guarantee full protection against risk. The intermediaries and research calls still present inherent risks, especially if the trader is not actively involved in research and analysis.
Reliability and Risk of Paid/Free Tips
For those who cannot invest the time into conducting their own stock research, relying on paid or free tips from individuals can be tempting. However, it is crucial to approach such tips with caution. One expert opinion suggests that if you are receiving tips from an individual, you should request their last 3-4 year IT Returns. This request can help verify the credibility and reliability of the tip provider.
Another significant concern is the legality and ethics of receiving tips. Sharekhan's officials have explicitly stated that some of their representatives sell tips, which is illegal. One trader who had regular interactions with Sharekhan representatives confirms that the representatives clearly stated that they do not provide tips for buying and selling on the same stock. Instead, they recommend using their own research reports for decision-making. This clarification helps to avoid any confusion or misleading information.
Conclusion and Recommendation
Given the various concerns and risks associated with relying on tips from brokers such as Sharekhan, it is essential to adopt a cautious approach. While brokerage firms like Sharekhan, IIFL, and Religare can provide valuable resources and research reports, it is ultimately up to the individual trader to use these resources wisely.
For those with a basic understanding of share trading, it is highly recommended to follow a thorough research and analysis process before making any trading decisions. This will help minimize risks and maximize the chances of successful trading. In summary, while some traders may find value in the tips provided by brokerage firms, it is essential to verify the credibility and legality of these tips and to stay informed about market dynamics to make well-informed trading decisions.