Tame the wolves of Dalal Street
retail investors. A new Sebi study, 'Analysis of Intraday Trading by Individuals in Equity Cash Segment', found that more than 70% of retail traders in the intra-day cash markets lose their money.
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A financial market is a complex ecosystem where opportunities and risks intertwine. Now, imagine a discordant note disrupting the symphony of supply and demand. This is the insidious effect of fake news, a tactic wielded like the pied piper's flute, luring unsuspecting retail investors toward financial cliffs.
Retail investors are often enticed by sensational headlines promising instant riches. This susceptibility stems from limited financial knowledge, emotional allure of quick gains and reliance on news as their primary source of information rather than analysis. Unlike their institutional counterparts with vast research teams, retail investors could become easy prey for the age-old 'pump-and-dump' scheme.
The scheme operates like a carefully orchestrated symphony. The first movement involves selecting a target company, often lacking analyst coverage or prone to volatility. Next, the conductor composes a fabricated news story, anything that promises exponential growth.
This fabricated news then forms the second movement. Social media platforms become echo chambers, amplifying the story and drowning out attempts at clarification. Take the recent Shipping Corporation
