Why should one follow or not follow tipsters?

For a simple reason that if they knew what would make money, they wouldn’t be telling the world about it :slight_smile:

One shouldn’t follow tips. Depending on somebody’s tips blindly will not help in the long run and will burn out all his trading capital. Effort should be put on learning different aspects of trading like money management skills, technical/ fundamental analysis, psychological aspects. Even if one makes continuous losses there’s something he learns out of the mistakes if he learns trading on his own.

@Venu

May be they are telling this to the world in order to make money!
When tips and recommendations are spread to the general trading population, dont you think they would act on it, meanwhile whatever the target the tipster have in his mind would be easily reached.

Ex. in some popular website they recommend to buy shares of ABC limited. People who follow tips, they all buy shares and since artificial demand is created, the price rises up.

The person who followed the tip may also be in the profit zone, once the stock price rises.

One the tipster’s target is reached (he or his client would already have those shares in demat account, ready to be sold with profits), he books profit and exits.

Since this is an artifical demand, the price also dwindles back to the original value.

So the tip ideally works for only a smaller amount of time.

If the trader in question who follows the tips exits the trade at the sufficient profits, would he not be with profits following the tip?

Note:

Tips does not work all the way, I agree, But I see some kind of win win opportunity. Act quick and pack off. I am assuming tipster includes the recommendations provided in sites like NDTV Profit, ecomomic times etc.