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How FII make profit at cost of Retail Investors Loss?

Discussion in 'Technical Analysis' started by satheeshs243, Feb 20, 2018.

  1. satheeshs243

    satheeshs243 Member

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    Hello Everyone,
    Can anyone please explain how the FIIs are making profit at the expense of Retail Investors.

    Thank you .
     
    satheeshs243, Feb 20, 2018
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  2. shabbir

    shabbir Administrator Staff Member

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    Not directly at the expense of retail investors but then they often decide the market sentiments though 2017 was different because of the mutual fund flows in the equity market.
     
    shabbir, Feb 20, 2018
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  3. satheeshs243

    satheeshs243 Member

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    Thank you Shabbir. They would have bought a stock and would give high recommendations in media and when all retail investors invest in that stock, the price would go up at which point the FIIs would sell off at high profits ! Have i understood right ?

    In HDFC securities websites, they are giving recommendations along with their Fundamental Analysis and Technical Analysis report. I have invested in NCC based on their recommendation. I will tell if their recommendation worked !
     
    satheeshs243, Feb 20, 2018
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  4. nirajshah

    nirajshah Champion

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    nirajshah, Feb 21, 2018
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  5. satheeshs243

    satheeshs243 Member

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    Hi Nirajshah !

    How do the recommendations work mostly ?
     
    satheeshs243, Feb 21, 2018
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  6. nirajshah

    nirajshah Champion

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    They never work. The way it should be used is you need to know the right price to be trading at and not rely on others.

    Sent from my Micromax Q385 using DIY Technical Analysis mobile app
     
    nirajshah, Feb 21, 2018
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  7. shabbir

    shabbir Administrator Staff Member

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    Even if it works, it is a random outcome for you and not based on your conviction and study.
     
    shabbir, Feb 21, 2018
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  8. satheeshs243

    satheeshs243 Member

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    Thanks for the reply Niraj !
     
    satheeshs243, Feb 22, 2018
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  9. satheeshs243

    satheeshs243 Member

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    What would you suggest for me to take the first step in studying the market Shabbir ?
     
    satheeshs243, Feb 22, 2018
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  10. nirajshah

    nirajshah Champion

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    I will repeat what shabbir says. Learn fundamental analysis for right stocks and then use shabbir's eBook to get in the stock at the right price.

    Sent from my Micromax Q385 using DIY Technical Analysis mobile app
     
    nirajshah, Feb 22, 2018
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  11. shabbir

    shabbir Administrator Staff Member

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    The first step is to know the right stocks and you can do that by reading my following articles

    https://shabbir.in/investment-checklist/
    and
    https://shabbir.in/fundamental-analysis/

    Once the stock qualifies the above checklist and analysis, I analyze the business on the following parameters

    https://shabbir.in/business-checklist/

    Then comes the understanding the technical analysis based on price action which gives us the right price. To understand technical analysis I have an ebook for it.

    Then we use quarterly results combined with technical analysis to determine if it is right time to exit the stock or not.
    Thanks for helping me out. Spot on.
     
    shabbir, Feb 22, 2018
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  12. nirajshah

    nirajshah Champion

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    nirajshah, Feb 23, 2018
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  13. satheeshs243

    satheeshs243 Member

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    Well,
    Its been 2 years and the recommendation for NCC in HDFC securities, failed fantastically !!! :D
     
    satheeshs243, Feb 19, 2020
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  14. shabbir

    shabbir Administrator Staff Member

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    And the process will continue for as many times as you test. There are kind of stock (the right ones) that help you make money and then there are others (the wrong ones) where you waste time unless you can time entry and exit in them at the right time. Often retail investors can't
     
    shabbir, Feb 19, 2020
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  15. satheeshs243

    satheeshs243 Member

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    You are absolutely right !
     
    satheeshs243, Feb 20, 2020
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