HOW DO OPERATORS WORK IN STOCK MARKET

 So, hello my dear friends. Today, I'll be discussing about the stock market operators. So if you are not that new to the system, if you are studying the stock market for some time, there is high chance that you will know about the stock market operators, what they do and how they actually loots our money. So it is the stock market operators. If you are traps into their traps, ultimately they will loot all your money. You will be bankrupt all your capital. All your capital will be eroded and they will make money from your losses. So these are the stock market operators. So now, if you are very new to the system, you might not have heard about the stock market operators. But today I'll be telling you about the stories of the stock market operators, how they actually earns money. And I will also tell you the story of two very well-known stock market operators. . 

Let me tell you who are the stock market operators? So dear friends, every time you are in the stock market, some of your friends has already told you not to get into trap of the stock market operators. So first let me discuss who are the stock market operators? I have created some notes about that. . So who are the stock operators and what do they do? Stock market operators are market participants who form us indicate to manipulate stock prices for personal gain. It is usually a cartel of brokers speculators and sometimes even company insiders. So you can understand who are the stock market operators. Through a co-ordinated act, the operators rig stock prices higher or lower creating a frenzy or panic for a certain stock. Seeing the rapid stock price movements, traders flocking and perpetuate the trend. Meanwhile, the stock operators exit with fat gains at the expense of naïve traders. So this is the game. So you can understand the stock operators actually will take the stock prices up or down, and it will be very fast. So now you can think that this is a real story, so you can enter the bus. You can board the bus. And then one fine morning, you will see that the stock started hitting the other circuits. If you were long, it will start hitting the lower circuit. And you can never get out. You will be only able to get out when your capital is fully eroded. So this is the game of the stock operators. They actually show that the stock is actually doing good. Once again, in case of the short-selling that stock competitors try to prove that the stock isn't real downtrend. So you will also short the stock and one fine morning, you will find that the stock started the upper circuit and you will b always get caught. Now, stock operators knows their limitations. They rarely venture to manipulate a heavily traded large cap stocks with so many market participants. The operators will not be able to influence the price, stop operators, understand and important truth. Their plan can work only on a small scale. They cannot apply their success formula on a large scale. So France as have understood that the stock operators does not operate on the large cap stocks. Rather they operate on the small cap or penny stocks. 

So I will also show you with example, how the stock operator works? And I feel many of you have already become victim of the stock operators. So I'll show you examples. And I'll also give you examples of two very well known stock operators. So the example of Harshad Mehta, so who is Harshad Mehta? Anyone who is there in the stock market since the nineties, they know the name of Harshad Mehta, but today's traders may not know the name of Harshad Mehta. So I will tell you the story of Harshad Mehta here. So Harshad Mehta was an Indian stock broker, well known for his wealth and having been charged with numerous financial crimes that took place in the 1992 security scam. So that happened on 1992. Of the 27 criminal charges brought against him, he was only convicted of four. Before his death at age of 47 in 2001, he was charged on that 4 cases. It was alliged that Harshad Mehta engaged in a massive stock manipulation scheme financed by worthless bank receipts, which is farm broker in ready forward transactions between banks. Harshad Mehta was convicted by the Bombay high court and Supreme court of India for his part in a financial scandal valued at Rs 5,000 crores which took place on the Bombay stock exchange or BSE. The scandal exposed battled loopholes in thatIndian banking system, Bombay stock exchange or BSE transaction system. And SEBI further introduced new rules to cover these loopholes. He was tried for nine years until he died in the late 2001. So Harshad Mehta was a big bull. And he was actually an operator. He used take bank's finance, bank funds to actually fund a particular stock. He used to take the price of that stock up, and then he used to sell it for huge gains. And the normal traders who are actually caught in that particular stock, they were actually losing money. So this is how the Harshad Mehta he has coming to the radar. Now, another example, example of KP, or Ketan Parekh. Ketan Parekh was a former stock broker from Mumbai who was convicted in 2008 for involvement in the Indian stock market manipulation scam. That occurred from late 1998 to 2001. During this period Ketan Parekh artificially rigged prices of certain choosing securities informally referred to as K-10 stocks. Using large sums of money borrowed from banks,including Madhavpura Mercantile Co-operative Bank of which he himself was a director. As a result, he was barred from trading industry, Indian stock exchanges. till 2017. So one thing you have already understood that both the stock operators use the same mechanism. They use the bank's money to actually fund a particular stock because from where you will get so much large money. It is a very huge amount to actually manipulates even a small stock. So they use banks funds. So now I tell you the name of some Capri 10or KP, 10 stocks. So few of the stocks are HFCL or himachal futuristics corporation limited, Mukta arts. The veteran traders, they know the name of Mukta arts, tips, Pritish Nandy Communication, Zee entertainment, Pentamedia graphics, and GTL. GTL is global tele. So if you are trading since say 1995 or 2000,you know the name of all of these stocks. They were the hero stocks once because they were actually funded by KP. Now, even KP has brought Kirpekar, you know, the name of Katie Baker. So Kirpekar was the owner of channel line. Channel line wasn't Australian channel. Initially when Indian cricket was in a verynascent state, Kirpekar used to actually show cricket on his channel nine. So now KP has bought Kirpekar in India and Kirpekar has actually invested for money in himachal futureistics. So KP even he actually cheated Kirpekar. So you can understand how these stock operators work. And I have particularly personally seen, himachal futureistics. If I still remember it was a 4,000 rupees stock and that 4,000 rupees stock. I think I have seen it last, I had seen it,It was trading at 15 rupees or something like that. I don't know what is the price right now,but you can understand if a stock operator operates, he can take a penny stock to 4,000rupees. And from 4,000 rupees once again, he can take it down to say 10 rupees. So this is the power of the stock operators. So you need to actually keep away from the stock operators. This is the rule of the game. Now that the role of KP was in 2001 market rash. Parekh purchased large stakes in less known small market capitalization companies and jacked up their prices through circular tradingwith other traders. And collusion with those companies and large institutional investors. These resulted in steep hikes in share prices, for example, shares of ZEE tele flims, zoomed up from 127, to the price of 10,000. So you can understand the power of the stock operators, he has taken zee tele flim from 127 rupees to 10,000 rupees. These set of 10 stocks was colloquially referred to as K10 stocks. And Parekh was playfully refer to as Penta4. So we used to know Parekh as the name of panta four. It later transpired that goal with us and industrialist often gave funds to artificially rake up their share. Does Justin a few months scripts over 20 unknown companies like] Roseland movies, 92, please do nine, 6.60. So you can understand. Group is 19 two piece two nine, three six. So it is a huge job. However, The stock exchange started to hammer back if their stocks in February, 2001, leading them to form and participate in a payment cause he's in Kolkata. So this was happened. Actually the stocks were actually unknown. The company was not having that business, but still as the operator was operating, he was taking the stock prices up. So this is the history behind that upside. So the stock was not having anything. So when the market came in, these stocks first, these stocks have actually crashed and many misters was actually bankrupt. 

Now I'll give you some real life examples. How does stock operators work? They actually sense Isn't this fun Unknown companies. As I have received an SMS, I'll show you here, I'll show you so Epic research partnerships, the company who has given the tapes, it is actually split and simple and operator school. So they tried to create a frenzy. So they had sent an SMS to me. I have to see these as you can see that as soon as over here to buy one leg, one PT or they to also here, and the current place was3.45, and the target place was eight. And stop loss is three. So you got to understand that if you are a small trader, if you have invested one black shares. So that means it is almost an investment or3.45 blacks because the price was 3.45. So you are Investing two, these three, one, four, five, never known stocks. So you can understand what will be the effect  of these . Well, here you can see the chart up saw, or the name of the company was SOA. Cup is less machines limited. You can see that Jack, the price. Once it has reached 100, it was in 2039. Then once again, it has reached 2015. It has reached around one 50, but I've started that it has never Rose up. So these operators, they have actually taken this company. It was up, but no one company it, a penny stock. And they tried to actually at least small traders in their boats. Now I'll give you another example. My example is Jackson enlistment limited that won't be is given here. You can see that they service over here, here. I haven't received this. Isn't a strong, uh, it's an . They will be getting high without two to people. So they have told stop cash premium called by Three Lac share of Jackson. They have given the BAC code over their act rupees 1.35, five plus plus, and they said he's won. And they had written that take 35% risk and gain 3.65 profit. So if you ask Walter, you can think that you can take risk of  and you can gain three rupees or 3.5 rupees, but you can never evict the stock because these scripts are very, very liquid. You went down and the stocks start moving downwards in sockets. So you can never eat these kind of stocks. So never ever go for these kind of stores. You can see the last price of the store. I have also shown it here. The last place of the stock was my son was below 20% and now I feel it is delisted from the exchange. So this is how the store operators work. And you should, why you should actually be stock operators. I have just plain and simple actually. So they are friends. I actually, who are the stock operators and how do they work? I actually, they are owners. So if you are a planted out of whoever I do one thing, you need to go plain and simple. You need to stay away from these store operators because do not trade on the stalks all on the calls. You do not know their sources. If you know, the goal is only leaves over very genuine source. They only trade yes, ever these kinds of goals. So plain and simple. If you want to save your hard earned money, you're going do at work. 

Comments