These days the market is flooded with a pretty casual slang known as “sure shot call”. Whether it be Instagram or telegram, you must have witnessed hundreds of channels giving these calls and guaranteeing a fortune.
Sure shot call refers to a lucrative transaction or investment opportunity normally provided by shady channels or platforms in the equity market with guaranteed returns. However, it must be kept in mind that there are no such assurances in the stock market, and any promises of returns need to be treated with suspicion.
These channels also highlight their track record of being 100% accurate which is next to impossible in the stock market as there is always some risk involved with investing.
The reasons why “Sure shot calls” or such channels are not in the interest of investors are:
- There are no guarantees in the stock market; therefore any guarantee of returns should be taken with suspicion.
- All of these tips are provided by channels that do not hold SEBI’s registration which is a mandatory requirement for providing investment recommendations.
- Guaranteed return promises might be a symptom of a deceptive plan intended to take advantage of naive investors.
- A critical factor in lowering risk in investing is diversification and hence relying on a single stock or investment tip makes investors vulnerable to the risks.
- The stock market is prone to abrupt and major swings and it is next to impossible to forecast with precision on how any investment tip will turn out in future.
Why there is no such thing as sure-shot call in equity market?
- Economic considerations: A wide range of economic and political issues have an impact on the stock market and can affect both the performance of stocks and the market overall.
- Innovation and competition: Today’s businesses continually deal with immense innovation and competition, which can affect a company’s financial results and stock price.
- Human error: Investors and analysts are susceptible to making errors in their analyses and projections, which can result in inaccurate expectations for the performance of certain equities and the market as a whole.
Why you should not fall for sure-shot call?
- It’s your hard earned money and you should take all the due diligence before following the tips from such-shady channels.
- There is a very popular saying in the market which goes like: “Only two people can predict the market: One is god and the other one is fraud”.
- All market biggies have faced some losses or have made some bad trades during their career as it is impossible to have cent percent trading record.
In conclusion, there are no assurances regarding the success of any investment in the stock market due to its inherent uncertainty and therefore no tip or recommendation exists with cent per cent accuracy.
Keeping all these considerations in mind, investors should stay away from the sure shot call guaranteeing 100% return as those who invest based on such tips always tends to make losses in the market.