OK. At last you have acknowledge the fault with tips providers.
Let us examine why traders behave stupidly.
I have no knowledge about day trading before I started. Whatever I learnt is through Internet browsing, brokers.
Infact, it is the profession which has no formal education prescribed. It is the profession based on experience in the field and the years of experience has not been prescribed. It is a profession which is more of an art than of a science.
It is the net which exploits the new comers to their deepest and fullest. In the absence of prescribed formal education in this field, people tend the fall prey to the gullible tips providers, buy sell signal softwares, trading courses like technical analysis in the hope that they would get some insights into trading rather than making lot of money. Making lot of money is the primary reason for new traders to enter market, once they realize it is not easy, they resort to believing that there is some magical formula with successful traders to make profitable trades. It is this search which makes them fall prey to these scandalous cheaters who deceptively pose themselves as winners of the market.
Lack of reliable formal education in the field of trading is the root cause of this growing menace of cheating and deceptive trade practices.
How many of day traders know the fact that 90% of day traders fail in this field even before they realize what it takes to be successful in trading. The new comers into the field do not know anything except a caution that trading in equities is risky.
The facts and figures of day traders is not published officially by any official agency. Even the brokers are reluctant to share the real fate of the accounts of their customers who have accounts with them.
Whatever the information and news received by the traders is either manipulated or deceivable.
Hope this clarifies how and why a new trader behave foolishly.
friend, am repeating ....ur the missing the crux.
Ofcourse these tips providers are fraud people and no one is denying that at any point. But let me tell you that the main reason for what happened with you is YOU.
1) As a starter one may not have any knowledge in trading.
But what about common sense ?? Thats not related to market knowledge yet it has to be used in every aspect including Trading. Problem is we dont use that common sense while trading and the reason is nothing but eazy money. Its not that we dont have common sense, but we ignore it.
Let me ask you this and please dont take it other way....What happened to your common sense when some one is assuring you huge returns? You must think that if someone could do that, why would he come to you begging for a fee? You must think that when he can earn your monthly fee in a sngle trade, why he should be behind you giving trails for his service.
Its all common sense and there is no need of any stock market knowledge to understand this.
You are assuming that i am not against these tips providers. Its not like that, I hate these sham people as much as you do.
Forget about tips providers for sometime. Lets talk about brokers and their dealers, they call you and somehow make you trade with their stories and mostly we end up in a loss. They do it just for their commissions. In a way these dealers are also like tips providers, one does it for a montly advisory fee and other for a commission on trade value. Same goes with Mutual fund agents and Insurance ( market linked ) schemes. Insurance industry is strictly regulated by IRDA, but what happened with ULIP schemes.
When people who are working under regulators are doing such horrible things what are you expecting from tips providers.
Our common sense if applied properly can alone save us 90% of times.