Earning easy money is a passion for many youngsters in today’s world. Moreover, quick decision to earn money leads people to stock market. Here in this blog you will get the detailed description – If you can depend on stock broker or not.
To start with a short story, a small town guy named Shubham had recently recovered from CORONA.
After spending lakhs of money he was not that happy. He had already informed his stock broker that he won’t be able to attend calls as he is not doing well. Still, the broker called Shubham to confirm If he can sell 2000 Qty of Bajaj Finance stock when the price of stock was 946/share. Shubham said ‘NO‘ as he was not interested in taking any risk. After an hour Shubham got a message in his Inbox (INSUFFICIENT FUND IN ACCOUNT ). Such stories are indeed terrifying.
One more incident I remember. In my early years, my broker from KIFS also used to call me and give OPTION CALLS and daily TIPS. He told me – “Lots of money to be made.. LOTS”.
You know what, I realised a little later, that he was talking about himself.. and not me.
IT’s their JOB
Stock broker are not always wrong as whatever they are doing is for the sake of commission he/she get. It’s their job to get people indulged in more and more trading. But this is their bread and butter. They followed all the compliances by taking your own signature and getting your permission to do trading on your behalf.
Firstly, as per new SEBI rules their duty is to call you before making a trade and that particular call has to be recorded. If not then It is a crime. A broker is always doing his duty while giving you call. His main purpose is to make money by any means. Good company have good Brokers and these stock broker build their reputation. They have good clients and they make good money for them too.
Not all Brokers are same. Before hiring any broker, do research thoroughly. God knows your broker might be a genuine TRADER who can help you make Rich.
Finally the best thing you can do from your end is to keep less amount in the Trading Account. This will certainly restrict the Broker to make big trades. You also need to act smart. Or you can do self study and try not to depend on any Broker. This is best as there are N number of stocks in market which are fundamentally and technically strong.
Last but not the least, check the balance sheet of company and go for ‘Positional’. That’s what Rakesh Jhunjhunwala, Warren Buffet and other traders did. Pick the best from the market and keep it for longer duration. Stocks are such a powerful money making tree that in a span of 5-10 years, you can be crorepati. You just need to identify that multi-bragger stock. Self trading can free you from broker zone and you’ll feel more confident while investing.
Victim of a Bad Broker ?
- Give SEBI threat generally it works .
- Lodge complaint in SCORES.
- SCORES Helpline NO : 18002667575