Be aware of this Simple Trick of Stock Market Operator in India!

From outside, stock market may seem an easy way for earning money. But when we actually go inside of stock market world, only then we can realise what is the reality.

At every point, stock market operators will be there to influence your decisions regarding where to invest. But the good thing is that they can only influence your decisions! At last, it is you who decide where to invest your money.

In this article, we are going to discuss about the famous strategy of India Stock Market Operators that is designed to trap retail investors. Sometimes, experienced investors like me may also fall in their trap. But if you will know about their strategy, you would rarely fall in them.

TOPICS

• Who are Stock Market Operators in India?

• Basic Strategy of Stock Operator to earn money

• Famous strategy of Stock Operators

• How do you find operator driven stocks?

• Ways to avoid getting trapped in stock operator’s famous strategy

Before we discuss that famous strategy of stock operators, we should know about who are the stock operators in share market?

Who are Stock Market Operators in India?

Individual, any kind of firm, broker or any other type of party who has enough money to operate or move a stock can become a stock operator.

They have sufficient money power to manipulate price of a stock for their own benefit.

In every field (where trading of goods is possible), there could be some participants who can either control or influence price of a good for their personal gain. Similarly, in stock market also there are some participants who can control prices of stocks.

What is their basic strategy to earn money?

“Whether you are a seller or a buyer, stock operator or Retail investor, foreign investor or domestic investor, you can earn money in stock market only when you BUY Low and SELL High or SELL High and BUY Low”

To accomplish this task i.e Buy low and Sell High, stock market operators use different strategies and tricks.

They can play with the minds of small investors by influencing share prices, may take help from media (News Reporters) or corporate insiders to execute their strategy.

Stock operators can use any possible medium to make their strategy work.

Famous trick of Stock Market Operators

Stock Market Operators uses many tricks and strategies to earn money. However, among their different strategies, there is a common game plan that is used by them frequently. Want to know about it?

It is

Buy Low,

Make the stock attractive,

And then take exit!

Did you get it???

If no, let’s see this example to understand it properly.

Suppose there is a company named ABC. Shares of ABC are trading around Rs 80 levels. A lot of time has passed but this stock has been steady or in sideways movement.

Retail investors who search for momentum are not interested to buy this stock because of little or no momentum. Small investors who were holding ABC Shares are also taking exit. They don’t want to waste their time anymore in this junk stock.

After remaining steady for a considerable time, stock investors are taking exit because no hope is visible in ABC shares.

At that point of time when many retail investor have exited, stock operator takes entry into ABC stock silently🤫.

Depending on the strategy of operator, he may initially start buying shares of the ABC company in a good quantity or low quantity.

The time when operator has nearly bought all the quantity he wanted, he will start buying the shares of company in such a manner that strong buying in shares will become visible to everyone.

After all this, stock of ABC company reaches Rs 150 levels.

At this stage of strategy, main focus of operator will be to bring this ABC stock into notice of many retail investors.

Few rumours may start circulating in market that xxxxxxxxxxxxx which will be positive for the company, if happened.

To attract small investors towards the ABC stock, operator will bring some sharp rises in stock to amaze retail investors!

After this, stock starts trading around Rs 180-190 levels.

Stock operator may also use media route (where ABC stock will be recommend by some experts on Business News channels) to help investors in believing that ABC shares is really a good stock at current price.

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Seeing all this, many investors start taking entry at the current levels in ABC stock. They are hoping that they would also earn something good from the ongoing sharp rally in shares of ABC company.

At this stage of strategy, operator can bring some correction also in stock to attract those investors who likes to buy shares at some discount.

So from Rs 190 levels, stock starts trading around Rs 170 levels because of correction.

Now, after executing all possible things to attract investors, operator will think about taking exit!!!

As the demand of shares is quite good among retail investors, operator finds it easy to take complete exit within a small price crack in ABC stock.

After proper analysis, operator finally starts taking exit. . . . . .

Stock operator try to take exit in such a manner that no one get clue about this. Silent exit is beneficial as retail investors may exit from the ABC stock earlier from Stock operator if they would know about this.

From Rs 180, Operator started exiting. Due to this, ABC stocks starts falling. Operator continue to sell in a best way.

When price came down to almost Rs 150, operator was able to sell all its shares that he wanted.

This caused ABC stock to trade around levels of 150 rupees (due to departure of operator).

After taking exit, whatever happens with ABC shares, stock operator doesn’t need to care about that. He bought low, sold at high and booked great profit.

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So that was the famous strategy of stock operators that is regularly used by them.

Here is the summary of stock operator’s famous strategy that we discussed above.

Find a stable Stock ➡ Start Buying it ➡ Buy silently ➡ Start making it popular ➡ Spread positive rumours and news ➡ Bring rally in stock ➡ Investors start liking it ➡ Ask some experts to recommend it ➡ Investors will start entering in it ➡ Keep volatility in stock ➡ More investors start entering stock ➡ Take silent exit ➡ Enjoy Profits or search for next stock

On a chart, it will look something like this

This strategy and trick of stock operators is similar to pump and dump strategy.

In this kind of operator’s strategies, mostly newbie investors get trapped because they don’t know much about the market. But sometimes, experienced investors may also get trapped in such traps.

Most of the time, retail Investors are not able to judge about when stock operator is actually taking exit from the stock? Those who are able to judge it mostly exit at peak prices during the rally in stocks and often do not fall into such operator’s trap.

Also Read – What is the minimum money required to invest in the Indian stock market?

How do you find operator driven stocks?

Stock Operators can play this kind of game frequently when they know that they wouldn’t be disturbed by any institutional investor or other market participants who can spoil their setup.

For example, a stock where big sized shareholders are not much active or doesn’t modify their investment decision based on short term volatility. It will be easier for the operator to implement his strategies there.

Where there is a possibility that Big players can sell some/all of their shares when a good or high price would come and can buy good quantity when low prices would come, such kind stocks rarely witness any big scale game play of operators.

But yes, within a short range of share price or during intraday, operators may still able to implement their strategies.

How to avoid getting trapped in stock operator’s game?

There are two ways to avoid getting trapped in operator’s game (that we discussed above).

Whenever you enter in a stock just because it has recently seen an amazing rally or is currently trending in market, use stoploss! It will help you to take automatic exit if the share price gone down beyond your capacity.

If you don’t like to use Stoploss, then other thing you can do is to avoid buying the stock at higher levels! Don’t buy if a stock has witnessed good rally in recent time. You will never get trapped in them!!!

If you still want to enter in it without using stoploss (as operator can intentionally bring down the share price just to trigger stoploss), then you should be well prepared to handle any losses if the stock doesn’t moves as per your expectation.

Conclusion

In share market of india, you can’t avoid stock operators. They are everywhere. Only because of their such gameplays, volatility and good opportunities always keep coming.

To earn from that opportunities, you will have to buy the stock at initial stage when the operator is buying it and have to exit from the stock before operator exit.

However, most of the retail investors are not able to do this. That’s why, percentage of those who lose money in stock market is much higher than those who earn.

If you frequently fall in the traps of stock operators, i hope that above discussion will help you to make it occasionally.

Now, it is time to end this article here.

Hope you earn good money from stock market.

Good luck : )