Who benefits by TODAY's big fall in Indian Stock Markets ?

This author has found convincing evidence(s)of misgovernance,
as stated in the earlier post and here is "an expose" :

That the share indices were taken to frightening NEW HIGHs in
the recent rally is no secret.
Also, as may be known to some individual investors, the short
sale of shares - if left uncovered - results in "auction" of
the scrips, usually resulting in a LOSS due to the difference
in the rates during the auction which takes place on T+3 day.

However, this week, short sales dated 15-1-2008(tuesday)which
were not delivered on 17-1-2008(thursday)& went under auction
on 18-1-2008(friday) would have resulted in HUGE PROFITS for
the short sellers !!

Will NSE / BSE / SEBI care to divulge this information to the
public / media about who the short sellers on 15-1-2008 were &
which scrips were short sold (with quantity & rates please)?
That is - if they ever did care to "INVESTIGATE" such events !

With the short selling proposed to be "officially" allowed via
an administered mechanism in the near future, such volatility
in the Indian stock-markets is bound to become even more of a
regular affair BECAUSE the watchdog SEBI is NOT equipped with
the expertise required to stamp out such malpractices.

me@sanjeevsuri.ws

Know Your Broker & THE System !!

This blog was created to highlight the many shortcomings in
THE share trading system in India ( NSE & BSE ) inspite of
SEBI being in existance since 1992.

After three years of extensive research across many brokers/
corporate broking firms,either directly or through referrals,
this author has found convincing evidence(s)of misgovernance,
utter lack of investor friendly systems and non-adherence to
the best practices or SEBI authorised procedures. Now whether
this is by default or done deliberately is anybody's guess !

That FRAUD is possible ( need it be so ? ) and occurs with
frightening regularity is one bitter pill which the common
investor has to, per force, swallow time and again.
And, instead of rectifying the shortcomings in the system,
this is what the Finance ministery / SEBI officially state :
"The stock market is not for the individual investor.
An individual is advised to invest in the equity market
through mutual funds only."

WHY ? This is one question which begs asking !!

Rule No.1 - Fund Your Trades

One of the cardinal rules for stock-investing is to NEVER commit your
short term funds to the stock-market for a pre-decided time frame.

If the stock-market does not move as desired within the
desired time frame, you might have to book a loss - on a
perfectly viable trade / investment.

Share Investors are Easy Picks !!

Have you ever visited your broker'office to place your order
for sale /purchase ?

You must certainly have traded on their recommendations
that crop up on the trading screen !!

Did you know that this is the easiest con trick perpetrated by
the sharp operators ?

Once they have cornered sufficient shares cheap and want to exit
their position, out goes the message to "BUY at (price I want to
exit at) with a STOP LOSS of (the real estimated market price)"

The gullible and greedy investors being in awe of the "experts"
follow their tip and, more often than not, have to liquidate at
the stop-loss levels - unless they have the money to carry home
the delivery.
In that case, one might be lucky enough to actually net a profit.

Either way, the Expert who "recommended" the trade gets his dues
... by PROFIT as well as "admiration" - even if it is for ability
to predict the stop-loss !

Do NOT trade on recommendation unless your own judgement supports
the prediction that flashes on the trading screen!