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Nifty Options Trading Tips Providers Will Not Make You Money

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If you read about page of this site you will know how much I hate stock market tips providers. They take your money and also give you bad advice. Its a double loss for the subscribers. They pay for the tips and also lose money in the stock market. How bad is that? Have you seen any result-oriented payments subscribers? Every company will take money from you in advance and send you the tips later. Why they don’t do the reverse? Shouldn’t that be the case.

The reason they take money in advance is that they themselves do not believe in their own tips. And I do not think they play the same tips that is given to their subscribers.

In fact I have also lost more than 2 lacks because of these so called stock market experts and tips providers. On top of that I paid them 40,000 over a six month period. That makes it a total loss of Rs. 240,000 – in just SIX months. Can you feel the pain and anger I feel?

I am against and for ever be against these tips providers. If you are reading this and looking for tips providers – please don’t do it. Save this money to do better things in the world. Take your family to a picnic – that will be a better investment that giving your hard earned money to the tips providers. You will not only pay but also lose money using these tips. When you call them when you lose money, they will either not pick up the phone or will come up with thousands of excuses and tell you to keep calm and keep paying for the services. You will in good faith pay only to lose again. You will do it until you run out of patience or money or both.

Once I put a stop loss on these tips providers – I gained confidence and started trading myself. Now slowly I am getting my money back, but at least I am not losing money.

So my advice is, do your own research. Whether its Nifty or any other stock – study about it on the internet or anywhere else. Master in one or two stocks and Nifty. Play in only those underlying which you understand. Play small first, then slowly increase your risk. It will take some time but slowly you will start making money instead of losing it.

Here is another example of tips providers losing money for their subscribers.

A few days back I got an email from one of my newsletter subscribers. I would like to discuss it here.

Here is the email:

Sir,

I need your advice on the following.
I happened to see a site called xxx.com. They give tips only on the Expiry day.
I was interested from academic point of view the following points:

1. How does they select the strike price?
2. How does they set the targets?

The performance sheet shows the trade was profitable for AUG expiry.

For SEPTEMBER expiry they had selected 5800 call. The trade was successful from 9:40 am but at 3 pm suddenly the premium collapsed.

What must be the reason for sudden fall? The person managing the site says its a freak trade.

Reason of Loss:

We saw Freak Trade [Punching Order Mistake] by Some Big player In 5800 Call And 6000 put.

5800 call Touched 52/- from 115/- And 6000 Put Touched 1.25/- From 100/- , Around 3.10 PM. For 1 Sec. So due to this type of freak trades, our tip did not worked and we did a small loss. So don’t worry our paid clients, we are ready to rock in OCT expiry tip.

Regards,
(Name Withheld)

My reply was simple:

Hi,

Over a long period of time you will lose money with tips providers because of

1. Bad tips,
2. You may not be able to trade exactly as they say, &
3. Expiry day trading is dangerous.

Hope that helps,
Dilip

===========

As you can see when they lost money for their subscribers they gave a lame excuse of “Punching Order Mistake”. According to them the punching mistake did drop the premium for 1 second. But it should be up the very next Right? How on earth they got time to send SMS to close the trade in that one second? One second is like you will not even know what exactly happened. And if the stop-loss order was in the system it cannot be triggered if you have set a limit order. As far as I know its far safe to put a limit order than a market order especially if you are trading on the very risky day. In that case even the stop-order may not have triggered as the value would have jumped way below the stop-loss.

If you are still thinking to subscribe to services of a tip provider. Here is a clue that they are only interested in your money and not making you money. And they themselves are not making as much as they claim.

Lets say these so called tips providers start trading with Rs. 100,000.00 (1 Lac) capital. If you have seen their websites some claim they can give 20% returns every month. Some claim to give even more. In fact I have seen their performance sheets claiming a return of over 100% every month. Read that again – over 100% every month.

If that is really true why are they offering these tips to you at a fraction of cost? Why can’t they play for themselves, compound it and make loads of money in just a few months.

Ok lets assume for a while that these tips providers are correct. One of them trades with Rs. 100,000.00 and generates a 100% return every month. If they reinvest that money every month do you know how much they will be richer in just 1 year? Compounded at 100% return every month they will make Rs. 409,600,000.00 in just 1 year. Let me help you to read that – Rs. 40 Crores, 96 Lacs. If 1 lac was there investment they make an absolute profit of Rs. 40 Crores, 95 Lacs.

After that they need not do anything in life – just enjoy life. A fixed deposit in a bank with a guaranteed return of 8% a year will fetch them 442,368,000.00. Lets calculate the profits: 442,368,000.00 – 409,600,000.00 = 32,768,000 / 12 = 2,730,666.66. They will make Rs. 27 Lacs, 30 Thousand every month without raising a finger. Imagine the kind of life they can have after just one year. Now think for a second if they are really that good – why should they employ people to take a few thousand rupees from you? They should keep their talents a close secret, make money and enjoy that money.

Even at 20% per month Rs. 1 lac will grow to Rs. 45,435,424.00 in 5 years. That is Rs. 4 Crores, 54 Lacs, 35 Thousand and 424. It is still good money to live a comfortable life. Why should they be bothered about your money.

Bottom-line is people who are not confident about their own research and have nothing else to do in life get into the business of stock market tip providing services. Its a easy business. If they reach 100 people and 5 people convert at Rs. 6000 per month. That is Rs. 30,000.00 per month. Considering their advertising, SMS and office expenditure is Rs. 10,000 – they make a profit of Rs. 20,000.00 per month every 100 people advertised. Now imagine some tip provider reaching thousands of people looking for their services every day. Using the internet and newspapers this is easily possible.

Hope you get the point. Now let me tell you some secret. They do something else and tell you to do something else. They never play naked. They will always hedge their positions so that if they lose money in one position they get back from some other. This is what they never tell you. If they were so confident, they don’t need a company called so and so tip providing service. Unfortunately still these companies exist and make more money from their subscribers than what they themselves make from the stock market.

Sometimes I think most of them do not trade the stock market at all. They live a comfortable life on their subscribers money.

If this article can stop even one person from not paying these tips providers, I will feel that my time was not wasted and this article was successful.


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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.

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About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 17 comments… add one }
  • harjeet December 30, 2013, 1:15 pm

    Nifty Options Trading Tips
    Providers Will Not Make You
    Money

    sir its a great article to read

    if u don’t mind please give me or no to call please sir

    • Dilip Shaw January 2, 2014, 3:35 pm

      Harjeet I have updated my mobile in the site. In case you want to call you can call me on: 90511 43004. You can of course ask anything here or contact me too and i will reply for everyone’s benefit. Thanks for reading.

  • KRISHNALAL NAHAR July 29, 2014, 8:00 pm

    Sir, Fantastic, well explained. You are 100% right. Truely tips providers play with money, emotions and trust of the poor innocent susbsribers. Certainly SEBI or concerned authorities should take strict legal actions against these so called scrupulous Advisory companies. Certainly some one should take initiative to bring this matter to the concerned authorities. Of course,even concerned authorities also must be knowing this fradulant practices and wantenly must be turning deaf ears.and sit with their closed eyes.
    KRISHNALAL NAHAR

    • Dilip Shaw July 30, 2014, 6:14 pm

      Why blame the government for everything. When traders pay the tips providers don’t they know their tips may or may not work? We are taking a risk. Yes most are SCAMs, but people who pay them are all educated people, knowing very well that they can lose money trading their tips. But greed takes over and they lose money. Just stop paying them – the business will evaporate. It’s simple business – there is a demand so there is a supply.

      People who pay them want to take a short cut to a rich life. It is simply not possible. Give me example of one person who made a lot of money trading tips of tip providers? You will find none. And still after reading this article there are some people who will pay to the tips providers. Who is to be blamed?

      If you want to get rich, but are not willing to work hard to get there – you will never get rich. It is that simple. Only way to get rich very fast is to be born in a rich family and/or inherit wealth. But alas, only if we could choose our parents. 🙂

  • kartar singh January 20, 2015, 5:23 am

    Well said sir I am agree with it, I stated this before 2 years at first I lost my money by adviser’s advice but now I earned my money back. I am 30 years old and depend on it, I trade daily with 5 lakh rupees without taking much risk and earn 20000 to 30000 per month and daily I research stocks now and really I want to tell all my friends do your own research. It can make you good trader no one can make you good trader by providing tips.

  • kartar singh January 20, 2015, 5:57 am

    Good morning sir, you are right sir many time they gave me wrong advice and once I went to their office and fought with them. I am 30 years old daily trader. I depend on it. I play with 5 lakh in stock market’s put call and I earn 20000 to 30000 per month without taking much risk. I am saving this and after two years I will play with 1000000 and earn 40000 to 50000 per month and again after two year i will play with 2000000 lakhs. Sir also i research in nifty. Sir if you have some idea for me please tell. Thanks.

    • Dilip Shaw January 20, 2015, 1:41 pm

      Kartar, if you make so much money trading the stock markets doing your own research you are an exceptional trader. 30000 from 5 lakhs is 6% a month, which in my view is very good. But I am not sure if you can sustain this every month. I agree sometimes option buyers make very good money. But when they lose – they lose it all 🙂 . So please be careful. Hedge your positions – this is the only advice I have.

  • monish November 8, 2015, 9:21 am

    hi i want to trade in stock market .please guide me.

    • Dilip Shaw November 8, 2015, 1:42 pm

      Monish I teach options trading. Stock market is an ocean and its very difficult to teach all things in a very small time. Hope you understand.

  • RAGHAVENDRA S BADIGER February 25, 2016, 11:30 pm

    sir, This is best article on tip providers and clearly explanied the bad effects of tip providers and loosing money in stock market. I
    I Started traing in stock markets 3 years back , i use to trade in equity cash with only 50 to 100 lots that with stock prices below 500 and most cases even below 100 also , i use to make 50 rs or 100 rs per day for some days(3months) then learning ,holding if loss happens exit or buy on dips and covering loss and exit with small profit some time nothing. n
    same thing i done in mcx commodity trying with mini small lots making profits of 500 Rs exit or loss of 200 Rs exit no holding. The same trading with agri commodities. Still I am Learning options statergis and doing paper work. Most i leaned from your articles.

    most of the Tip Advisors get contact nos from the Dmat dealears only, They sell contact nos for few 100s per contact and the new bee who opened recently Dmat Account in hurry making money and greed take services even doenot knowing the basic trading when to make entry, when to exit what is stop loss and hedging etc.
    They loose hard earned money and quit share market saying it is gambling its better paly Rummys,cards,casino matka etc and Blaming share market and spreading negatives in the society and their friends circles due to which in india the economic growth is slow and still we are under developed country and FDIS – Foreign investers investing money in share market and takings lakhs of crores money from india . The best example is in last week or 15 days back (this febraury 2016 ) in span of three days only FDIS Made 7lakh 300 crores from Indian market.

    • Dilip Shaw February 26, 2016, 11:23 am

      Well said.. I think you meant 50 to 100 shares not 50 to 100 lots…

      When markets fall investors lose money. It does not matter if they were DIIs or FIIs. But some of the derivative trades make money (like shorting Futures or Shorting Calls/Buying Puts). That said it is very important for everyone to know these both sides of trading and investing, how to diversify risk and how to be conservative in approach while trading.

      These types of people will almost always succeed. But those who trade just to make money fast, will lose money fast.

  • Ajay July 9, 2016, 7:14 pm

    Sir, I am undisputedly agreed with your view points. Tip providers are nothing, they simply snatch money from innocent people/investors by showing day dreams. Through you, I would like to communicate that Top Providers must be strictly discouraged not to pay any heed. Simply ignore their calls. If we all do this, a time will come all these so called Tip Providers will disappear from this World.

    I sincerely request through your site “SAY NO TO TIP PROVIDERS”.

    First LEARN then EARN. The difference is only “L”

    Best Regards,

    Ajay

    • Dilip Shaw July 10, 2016, 11:14 am

      Ajay, the problem is both sides not one side. Most people want to trade the stock markets to make easy money and fast money. People do not realize that there is nothing like easy and fast money in any business in this world. Money comes only through hard work and knowledge. So they become greedy and exactly the same time get a call which promises them the same thing which they dream of – of course they pay instantly. When they start losing money they realize their mistake only after losing. In fact my journey also started the same way. So I think we should blame ourselves first before blaming others. If we can control our greed these kinds of business will vanish. But it looks like the story now in 2016 is exactly the same as when I started trading in 2007. And I think it will remain like this for ever until people learn to control greed.

  • radhakrishnan October 9, 2016, 2:43 am

    Sir, your article has really opened my eyes as i had also fell prey to these tips provider, lost too much money, then i decided to do stop trading, Hats off to you for such an article & creating awareness, pls help me in stock future hedging technique if you have any. As in Gujarati there is a saying ( JO CHEEZ UPPER KO JATA HAI WHO NICHU KO ATTA HI HAI &VICEVERSA. To make profit or not to loose money please suggest me in my email Regds. RK.

    • Dilip Shaw October 9, 2016, 5:42 pm

      Radhakrishnan,
      I have deleted your email and phone number as lots of people visit this site and they may know your identity. So to protect your privacy I deleted it.
      I offer a course which has good hedging techniques that you are asking. If interested you can do it.

      Click here for the details.

  • kapil March 28, 2017, 9:24 pm

    Really true lines about these tips providers…One should educate himself/herself instead paying them..thank u sir

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