Free Tips and Calls dont make you money

Tips are pieces of information that come from questionable sources with no known way of tracing them. The issue of using tips for profit goes beyond the issue of right or wrong. The real issue is the need to function as an independent, self-contained trader.

Once traders relinquish their autonomy by relying on tips, they might well start to work for someone else. They become, in a sense, employees of the tip giver. As a trader with a vested interest in the markets, it is better to make money by correctly analyzing the markets yourself. Then you become the master of your own destiny.

On the other hand, if you learn to make money by relying on tips, you are no longer free to trade any market. You are dependent on your source, who in turn is dependent on his or her source, and so on.

The argument for using tips is that you can take one tip and ride it all the way to several thousand rupees of profits. However, in the process of making this gains, you forget about doing anything else. You no longer try to apply fundamental or technical analysis to market situations. You no longer treat the market as business.

Good tips are given to only a few, bad tips are given to everyone. The next time time you hear a tip, think again.

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the index has hit an all-time high of 75,124 and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !

Historical BSE Sensex returns - updated 2013

We have already seen the historical returns of the BSE Sensex, which indicated an average return of about 20% per year, despite many yearly returns varying from -20% to +60%. The following table shows BSE Sensex historical data - open, close and the yearly returns of the sensex from 2000 to 2012. There are some interesting points to note from the above table. Post 2008 crash of about 50% and 2011 negative returns of 24%, markets have given positive returns of 81% and 25%. Also the average returns for the past years is about 20% despite the markets being down 24%. The lesson is pretty much clear - long term investing pays and one need not bother too much about the ups and downs of the markets. During the past few years, the returns from investing in individual stocks have been varied. Despite markets being at 2 year highs, only a few stocks are at similar highs, while most of them are still languishing well below their historical highs and are down anywhere ...

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