This has been posted by one Mr sharadchandra joshi on one of the yahoo forums. I think it Mr Joshi has raised a considerably relevant point
Two weeks ago, I met investmart portfolio managers at my house and they said that we could invest a minimum of Rs15lakhs and give them a power of attorney. They have one scheme where they invest on our behalf in the market and share the profits and losses in the ratio of 90:10. If there are losses, there are no charges. In the other scheme one has to pay 2% of the investments.
This is the first time I have heard of something like this. I see no reason why such a thing cannot be followed by the Technical analysts. All the more so because in a smaller timeframe, it is even more difficult to predict. Technical newsletters are more like glamorized tips and one can never really be sure of ones own decision making especially if you have to choose 10 stocks to expect 2-3 to succeed. At least the Technical analysts should offer an option. For example, Mr Ashwani Gujral told me that he recommends a portfolio of 10 stocks for covered call writing. That has far more credibility than trying to choose out of some newsletters recommendations.
This qualification business is also a cause for concern. For investments, there are chartered financial analysts and Chartered accountants. In USA there are TA associations but here there is a free for all no course, no qualifications and that too in an area which is more difficult and dangerous than investments. I know somebody who has started trading consultancy with two years experience. Mr Gujral's name is mentioned in various TA american magazines and he has written articles for them which can be one parameter. Otherwise, how does a layman judge?
One should also not forget that every good analyst does not become a good trader and that is ultimately what counts. How does one judge-"Kaun kitne pani me hain"?
Thousands of companies,thousands of
brokers/subbrokars.lakhs of investors,promoters,
operators, political impact local and
international,oil prices, GDP growth, inflation are
some of the very few factors that affect market
sentiment. Nobody can correctly predict inspite of all
the studies and inteligance one has.Those who claim
100 or 95 persent success are fooling people.TA
predictions are based on statistics of past. It is
like monsoon predictions.It does go wrong.TA advice is
always to be taken with pinch of salt. I am not
against TAs nor I undermine them and their study of
the market.I am against those who make tall and false
claims.I came across one TA claiming 100% success. I
offered him that I will invest Rs. one lakh and every
month I will pay you half of my profit. Only hitch was
I would pay at the end of the month and not in
advance his regular fees of Rs. 2500 p.m.. He backed
out. I am against such people. TA predictions are to
be taken as guidelines and not gospel truth.
It is high time that SEBI should intervane and stop
this practice but it is impossible practically. So
they should conduct accredition test for TA and give
them regn No. Atleast there will be certain amount of
basic study for TA.Even for accredited TAs usual
disclaimer clause will be applicable. This is in the
interest of common investors. Today anybody comes up
and says that he is TA with 99% success rate, charges
hefty fees and vanishes.
I strongly feel that all of us i.e. common investors
approach SEBI they would do something in this
regard.SEBI is generally accepted as clean and
investor friendly. I am sure they will do it if
investors demand. There has to be awareness in this
regard. But everybody is busy and has little time for
such noble work.
thanks and with no disrespect to Tas
brokers/subbrokars.lakhs of investors,promoters,
operators, political impact local and
international,oil prices, GDP growth, inflation are
some of the very few factors that affect market
sentiment. Nobody can correctly predict inspite of all
the studies and inteligance one has.Those who claim
100 or 95 persent success are fooling people.TA
predictions are based on statistics of past. It is
like monsoon predictions.It does go wrong.TA advice is
always to be taken with pinch of salt. I am not
against TAs nor I undermine them and their study of
the market.I am against those who make tall and false
claims.I came across one TA claiming 100% success. I
offered him that I will invest Rs. one lakh and every
month I will pay you half of my profit. Only hitch was
I would pay at the end of the month and not in
advance his regular fees of Rs. 2500 p.m.. He backed
out. I am against such people. TA predictions are to
be taken as guidelines and not gospel truth.
It is high time that SEBI should intervane and stop
this practice but it is impossible practically. So
they should conduct accredition test for TA and give
them regn No. Atleast there will be certain amount of
basic study for TA.Even for accredited TAs usual
disclaimer clause will be applicable. This is in the
interest of common investors. Today anybody comes up
and says that he is TA with 99% success rate, charges
hefty fees and vanishes.
I strongly feel that all of us i.e. common investors
approach SEBI they would do something in this
regard.SEBI is generally accepted as clean and
investor friendly. I am sure they will do it if
investors demand. There has to be awareness in this
regard. But everybody is busy and has little time for
such noble work.
thanks and with no disrespect to Tas
This is the first time I have heard of something like this. I see no reason why such a thing cannot be followed by the Technical analysts. All the more so because in a smaller timeframe, it is even more difficult to predict. Technical newsletters are more like glamorized tips and one can never really be sure of ones own decision making especially if you have to choose 10 stocks to expect 2-3 to succeed. At least the Technical analysts should offer an option. For example, Mr Ashwani Gujral told me that he recommends a portfolio of 10 stocks for covered call writing. That has far more credibility than trying to choose out of some newsletters recommendations.
This qualification business is also a cause for concern. For investments, there are chartered financial analysts and Chartered accountants. In USA there are TA associations but here there is a free for all no course, no qualifications and that too in an area which is more difficult and dangerous than investments. I know somebody who has started trading consultancy with two years experience. Mr Gujral's name is mentioned in various TA american magazines and he has written articles for them which can be one parameter. Otherwise, how does a layman judge?
One should also not forget that every good analyst does not become a good trader and that is ultimately what counts. How does one judge-"Kaun kitne pani me hain"?
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