There are many individuals in the stock market who call themselves experts and offer paid trading predictions. They claim that 80-90% of their predictions, especially in intraday trading and options trading, turn out to be accurate. According to them, if you trade at the time they suggest, you will mostly make a profit. These individuals, often referred to as paid call providers, charge monthly fees ranging from ₹5,000 to ₹20,000 for their services.
At first glance, this deal seems beneficial. If 70% of predictions are correct in options trading, one could potentially earn lakhs. Paying ₹20,000 as a fee wouldn’t be a problem if such consistent profits are possible. However, if you think this way, this post is for you. Read on to understand whether these services truly work or if they are part of a scam.
The Paid Call Providers Scam: How It Works
Nowadays, many people share trading advice through platforms like WhatsApp and Telegram, often posting screenshots of ₹5 lakh to ₹7 lakh profits to lure unsuspecting traders. To get these tips, you need to become a paid member of their groups.
Biggest Scam Trap
These so-called experts cast a wide net, targeting thousands of people. To build trust, they offer a free trial, which seems like a good deal. However, this is a well-planned trap.
For instance, if they offer a free trial to 4,000 people, they divide them into two groups of 2,000 each:
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- Group 1: Told to buy shares of a company, e.g., GAIL India Ltd.
- Group 2: Told to sell the same shares.
Regardless of the stock’s performance, one group’s prediction will inevitably be correct because stock prices either increase or decrease.
Step-by-Step Manipulation
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Initial Trust Building:
- On the first day, 2,000 people in one group will see accurate predictions and believe in the provider’s skills.
- The other 2,000 who received incorrect advice will be ignored.
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Narrowing the Target:
- The next day, the 2,000 remaining believers are divided into two groups again:
- 1,000 people are told to buy a specific stock (e.g., Reliance).
- 1,000 people are told to sell the same stock.
- Again, one of these predictions will be correct.
- The next day, the 2,000 remaining believers are divided into two groups again:
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Final Selection:
- After two days, 1,000 people are left who now have full trust in the provider.
- They are asked to subscribe to the paid membership, which costs around ₹10,000 per person.
Profit for the Fraudster
If 500 out of the 1,000 trust the provider and subscribe, their total income becomes:
500 members × ₹10,000 = ₹50 lakhs in a week
Repeating this cycle every week can yield monthly earnings of crores for the fraudster.
Why You Should Be Cautious
- Unrealistic Claims: No one can consistently predict the stock market with 80-90% accuracy.
- Misleading Free Trials: These trials are structured to manipulate trust.
- High Membership Fees: Paying ₹5,000-₹20,000 for predictions can lead to losses instead of profits.
- Lack of Accountability: These individuals disappear after a few rounds of scams.
How to Avoid Such Scams
- Research Thoroughly: Trust only registered financial advisors.
- Avoid Telegram/WhatsApp Tips: Do not rely on groups or screenshots showing fake profits.
- Learn Trading: Instead of relying on others, invest time in learning trading strategies.
- Beware of Guarantees: No one can guarantee profits in the stock market.
By being vigilant and avoiding such scams, you can safeguard your hard-earned money and trade wisely.
