How To Lose Money By Listening To Tips; The Example Of Surana Solar

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In the last few days Surana Solar has been in the limelight. Not a heavily traded stock, the shares were in the limelight first on Wednesday.

How To Lose Money By Listening To Tips; The Example Of Surana Solar
There were initially reports that reputed investor Rakesh Jhunjhunwala had picked a stake in the company. Now, anything that is linked to the name of Jhujhunwala is considered an excellent pick, because he has an art of stock picking and has made millions.

Speculators who always listen to tips wanted to make quick money. On Wednesday these investors and speculators went berserk and bought the shares. The result was that the shares hit the 20 per cent upper limit and trading was frozen.

Today, there are some reports that it is some other Rakesh Jhunjhunwala and not the same that people thought. The stock is down 20 per cent in trade.

Investors and speculators who bought the stock yesterday are down a cool 20 per cent today. That is not all, there are only sellers in the counter and no buyers. So, if the stock opens lower again tomorrow, you can be done by another 20 per cent. Thus it can even be a super loss of 40 per cent in two trading days. So much so for buying on tips and speculation.

Some investors never learn. You have to invest and invest in good quality stocks. Not on the basis of roumours and tips.

Read more about: nse
Story first published: Thursday, June 11, 2015, 11:42 [IST]
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