There are various stock market scams that are smartly implemented to rip you off. Today we are going to decode each one of them. Let’s begin!
Today we will talk about the Ek Villain, which is running behind your hard-earned money!
What? Ek Villain? What’s that?
Well, we are talking about stock market scams that target naive retail investors like us to fall prey.
Don’t worry. We will also tell you how to avoid such scams and invest safely.
So, let’s begin.
Stock Market Scams To Be Aware Of
1. Stock Market Does Not Offer Guaranteed Returns
No matter where you invest – stocks, mutual funds, ETF, or any other asset whose returns are backed by the stock market – there is no chance of earning guaranteed returns.
So, if you receive an SMS claiming to offer guaranteed returns from the stock market, all you need to do is block the number ASAP and breathe a sigh of relief! Your money is safe.
2. Pump and Dump Scam
This scam has been in the markets for a long time. So, what is this scam about?
Here a group of operators play a smart tactic and buy shares at low prices. Then they spread fake positive news about the stock through random Telegram and WhatsApp groups. Retail investors like us buy the stock expecting the price to rise.
This creates fake demand, and the stock rallies and these operators dump their shares and book profits.
Basically, they pump fake demand, and as the stock rallies, they dump their shares.
So, the learning lesson here is that don’t join random Telegram or WhatsApp groups that offer free tips. Remember, nothing in this world is FREE!
3. Don’t Share Your Credentials With Anyone
Remember to keep your credentials confidential if you have a trading and a Demat account. Just like scammers attack your bank account, there are many illegal ways to get money out of your trading account too.
With your credentials, someone can also cash out your investments without your consent. So, strictly, keep your credentials confidential.
4. Beware of Halo Effect
Here the hacker might sound trustworthy. They try to portray authenticity and persuade you to trust them with your money. They talk with credibility and give big promises which are too good to be true.
Remember, credibility can be faked. And when things are too good to be true, be skeptical and do your research.
What Should You Do To Avoid Such Scams?
SEBI comes up with various campaigns to educate investors to stay safe with their money. Don’t worry, it’s not too hard to stay safe. Always invest with due diligence and with SEBI registered brokers and investment advisors.
You don’t have to look far. Teji Mandi is a SEBI Registered Investment Advisor who will make investing in stock market easy for you!
So, the next time you wish to invest in the stock market, invest with Teji Mandi.
That’s it for today. Don’t forget to share this awareness with your friends!