Nowadays, there’s a large number of experts/ tipsters operating on WhatsApp and Telegram groups. They claim to know what to trade in and how to multiply one’s wealth. They charge a monthly/yearly fee, and provide calls during trading sessions with proper target price, SL and entry price. While this seems to be a legitimate and helpful business, it is entirely illegal.
If they really had a system that could help them make easy money through trading, they wouldn’t be sharing it with others. With the help of margins and their own capital, they could have made crores of rupees in a short span of time, but that’s not the case. Instead, they are selling tips in exchange for money.
These individuals do not have your best interest at heart. They understand that you’re not very confident in your trading skills and they try to take advantage of the same. You might have also noticed that they continuously boast about their profit making trades, but never talk about the trades that go against them. This is a marketing gimmick to get more paying clients.
In addition to this, some of them go one step further and ask for your User ID and Password to place trades on the broker terminal. This can lead to a number of problems and is illegal too. They might use your account to make money for themselves. You must never share your login credentials with anyone. Instead, you can report such individuals to BSE. Click here to know more.