How “Thugs of Financial Markets” take you for a RIDE? Must read for all investors.

22 November 2018

How “Thugs of Financial Markets” take you for a RIDE? Must read for all investors.

Greetings from Hitesh! Today we are sharing some inside techniques of Financial Market Thugs. If you are investing, please make sure that you are aware about it. Our last two posts on MAHAVIR’s success lesson and Jeff Bezos attitude of being with end have been appreciated like anything by our success minded readers. If you want personalised guidance, you can approach us.

Three Steps of Financial Thug’s working style: -

MAKING AN UNBILIVABLE BUT INTERESTING CLAIM: -

Let me share some of the examples.

1.  If we replace the plant of ACC, the new cost will be at least Rs.10000 per share, so the price must be Rs.10000 per share – replacement cost theory of big bull in 1992.

2.  Y2K business will turn Indian IT companies into GOLD!! ICE companies scam in 1999-2000 by KETAN PAREKH.

3.  Land is Very Scare Commodity. You can’t produce LAND!! Real estate teji in Year 2005 to 2007.

4.  BITCOIN is going to be the currency of tomorrow. It will touch USD 50000 to USD 100000. Year 20016-2017.

I can add many political claims of our beloved leader in the above list also. But I am restricting myself to the above 4 claims only to bring home the point to explain THUGS way of working.

The beauty of the above claims is that they are logical and interesting, but you may find it difficult to believe. However, deep down, you may feel, you should believe in these claims.

Support the CLAIM with Very INTERSTING STORY: -

They will support their claim with very interesting story which you will find it LOGICAL / appearing LEGAL / Supported by MEDIA experts and by some reputed third-party agencies.

In 2010, WALL STREET guys started selling 3^rd Quality Chinese stocks to US investors with the help of BIG FOUR Accountancy Firms approval. You can watch CHINA HUSTLE documentary for the same. The US investors would see the name of BIG FOUR and trust blindly. Same things happen with RATING agencies also.

This makes their claim and their story very appealing to the investors. They start believing the story. They get engaged into the story. While the investors get busy investing post buying the story, they take the third step.

SHOW what they want to See, but Do what you want to Do: -

Now, the THUGS come into their real game. They will show you that stocks are moving up or asset classes are moving up while you are investing, and they start offloading or they may come out with some surprise move which will take your money off the table.

There are N number of examples of taking NORMAL guys for a ride – in chit funds, Multi-level marketing schemes, shares, money double schemes, plantation scams, baba scams.

In all the above examples, they follow the above three steps only. If you become aware about the same, you can save yourself.

Why NORMAL guys fall to the prey of this CON ARTISTS?

Most normal guys want something for nothing. This is world over phenomenon and not only Indian phenomenon. They lack the guts / will power to put the efforts / believe in fair deal of NATURE / not ready to invest money and time to educate properly for investments / they lack the patience to give time to money making process. For them fast is the best.

I have seen the most educated guys falling to the prey of the con artist due to above qualities.

What NEXT?

There is NO FREE lunch. You will have to pay for it someday or the other. Better pay now and enjoy later.

If you want to prepare yourself for success in investments, business or life, you can approach us.

I wish you a GREAT DAY.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.