July 10, 2012

THE TRAP OF TRIALS: Read why Free Trials is a scam and a constant malpractice or cheating operated by many stock advisory websites/companies.


THE TRAP OF TRIALS: Read why Free Trials is a scam and a constant malpractice or cheating operated by many stock advisory websites/companies.           


We have written about several traps, frauds and malpractices happening with investors and traders who seek advise on the internet. Please find all those ‘INVESTOR AWARENESS’ articles here. But the one malpractice happen to them that we are talking about today is indeed the ‘mother of all malpractices’. And that is ‘The Trap of Free Trials’. Yes, ‘Trials’ or ‘Sample Calls’.


Most of the (in fact all of them as we have not found any advisory company giving no trial service, however some individual analysts do-not give any free trial for promotion of their service) give trial or sample calls. they in fact put on their website prominently (to get your data) or their telecallers cold-call you and provide free trial. so, thus most stock advisory companies are providing/offers 'trials' or in other words entice the people to take free trial.
            Now, most of you would say that what's wrong with it? In fact, it is good for them they get to get a 'sample' trading advice about the research/trading calls/tips of the company and thus check them for accuracy, weather they are good or not. And you would also tell that we (MEGHA INVESTMENTS AND RESEARCH) should change policies of 'No-Free-Trial' advisory and start providing Trials like other advisory websites/companies.
            But in next paragraphs, you will understand why we do not provide trials, and why 'Tral is a Trap' for any investor/trader searching for tips online/offline and why you should keep away/beware of it.
            POINT 1: GENERATING MAXIMUM LEADS, MEANS MAIN OBJECTIVE IS MAXIMIZATION OF INCOME & IGNORING CUSTOMER SERVICE QUALITY & CUSTOMER RETENTION/RENEWAL RATIO.
            Let us start by understanding that a firm want to generate maximum profits and for that it want maximum leads and if any firm want to generate maximum possible revenue at all/any point of time then it is clear that it do not care about the quality of service and renewal/retention of customer, this is a logic of common understanding.
            Also, as you can see that their staff is occupied always with talking to and providing trials to new inquiries persons, they do not have time to give service (forget 'quality service') to existing customers. (The reason is) they do not have any such thing as 'quality service' in the first place. How and why?, you will understand in the following to come.
            Readiness to give trials for avisory firms to anyone at any time is like an airline company selling airtickets to any one who want it at any time they want, without any count of concern of the actual seats they have on pane. However, it is a pity that investors do not thing in this much depth while putting their money on trade on free advise given by any such tom, dick and harry type website/telemarketing advisory company.


POINT 2:
            Point 1 talked about the pure profit mazimisation objective of those all advisory companies who give 'free trials', without concern of quality/availability of service & customer retention or customer renewal fees. Se, essentially companies providing 'trials' target 'everyday new inquiries'. In a bitter words, their business is not to provide good/right advice to customer and retein him (also earn renewal fees) but their objective is to take (cheat) money out of just another some new guys who unfortunately (fortunately for the cheating firm) happened to land on the company's site and got lured out of free trial OR got 'cold-called' and enticed to take trial over phone by the company.
            This 2nd point, you will understand is about that most of such companies' whose website you stumble upon and feed data for trial or agree to take trial on a marketing cold call you received; is do give trial only for 1 day or max to max 3 days. They do not give trial for usually more than that weather the trials got right or wrong. Now, the point is CAN YOU DETERMINE ON THE QUALITY/ACCURACY OF THE TIPS/ADVISE/TRADING CALL OF THE ANALYST/COMPANY ON THE BASIS OF A COUPLE OF DAYS TRIAL? A smart person would not so it. However, again the pity is so many investors do not think in depth and logically about this & fall in this 'Trap of Trial'.
            As you will also agree no one can determine any analyst's accuracy by a couple of tips/or couple of days of trial calls. Because some really god analyst's tips would go wrong some consequent days and some completely bad/random tip-provider can go right. However, good analyst will always have a better track record over a couple of weeks than a random tips-provider. So, if you want trial sample trading calls and the advisory company is willing to give you sample calls, then ask for more than 10 trading days sample calls to determine their accuracy and customer support service both. Otherwise you will stay away after knowing the logics and arguments given here. However, I guarantee you no advisory will give you trial of more than 1-3 day. It just do not fit into their basket of 'trick of trial' by which they have created this 'trap of trial' for you!  However, even if your trial tips provide advisory operator agrees to give you 5 or 10 days trial, then, after reading the following point-3, you will know how the 'free trial' provider must have tricked you in giving successful trials for constant days...
       
   POINT 3: BUY SELL 50-50.
            This thing never came to my mind on its own...I was reading a book 'Fooled by Randomness' by Nassim Nicholas Taleb, and found the mention of the mass mal-practice adopted by the stock newsletter/advisory providers. Then, later on we checked out on our own by cross cheking and other means and sources; only to find out that Indian Investors and Traders taking 'Free Trials' advise/tips are cheated by this mass mal practice or trick by advisory firms.
            As said in point no.1 'trial' firms target maximum  inquiries at all/any point of time. So, usually they have a good number of prospective/potential customer who can pay after getting trials. So, what these firms do is that suppose if they have, say, 40 Trial-Customers on any day they will give a call of .e.g 'Buy Reliance Industries Ltd at cmp-750...' to only 20 persons (not all 40) & give 'Sell Reliance Industries Ltd at cmp-750...'  to another 20 persons! Yes, this is shocking for average investor/trader looking for some good advice to make some money in stock markets. See, it is just as simple as that for these unscruplous so-called stock avisory companies. There is no such thing as research/analysis  & advice; it is pure trick to grab money by fenerating maximum leads/inquiries online/offline.
            This 50-50 buy-sale trick is extended from there. In the above illustration as you saw buy call of RIL was given to half (20) persons and sell call of the same stock at same price at same time was given to  another half (20) of them. So, either of it will be proved right. Suppose, the stock risen and thus the 20 persons who were given a buy call were given a successful/right/accurate call. Now they will try to take money from this 20 persons on the basis of this so called successful and accurate call/sample free trial provided to them. However many customer will not buy on the basis of 1 day trial, some do. So , now the cheat advisory company/analyst would again repeat the same trick on those 20 trial persons. It divides them into 2 trial groups again (10+10) and then gives buy call to one group and sell call to another group of 10 persons for the same stock/commodity at the same price at the same time as done earlier. As you know any one is going to be right. Here, those 20 people were alteady given 1 so-called 'successful' trial and out of them now 10 person have taken 2nd successful trial. Now the company will again ask for money from these 10 persons claiming that they were given 'two sureshot trials' as promised. And if some customers tell to give more trial, then again they wil repeat the same trick, divide these 10 persons into two group of 5+5 and then again give buy call to one and give sell call to another group of 5. Thus, as you can predict, 20 customers out of those 40 trial inquiry people are given 1 so-called 'sureshot' call, 1 are given 2  constant successful trials calls/tips and 5 are given 3 constant successful trial tips! These operation, the company will complete in one day of in three days. Just imagine a website based advisory firm may not get too many inquiries but a web based and as well doing cols calling marketing as well, the trial-system/trial operating company can give trial to daily 100-200 or even more persons wanting to take trials as they usually have a call centre-type set up. Supposs, they run a  people trial group there will have 50 persons daily with so-called '1 sure shot trial'. And 25 person whom they would have given 2 constant 'right/accurate' trial. And 12 persons who are given constant 3 right trials!! This is mindboggling. Isn't it!
            Now, after reading all this ,if you still rely on trials and ask for trials, then its all upto your common-sense and logic....


POINT 4:
            Most websites do not have actual business firm or offices and not even analysts. They are only a way to get data, to generate leads for free trials on whome then they can operate the 'buy sale 50 50' trick.


POINT 5:
            Another characteristics of such operators, who give free trials in guise of providing so called free trials, is that they operate in different names to use the curned out data. Yes, what they will do is suppose ABC STOCKS has a 100 traders data and it has used them by calling and offering service and free trials and extracted all juice out of it by applying all tricks to get money from these 100 people, then its sister operator XYZ STOCKS (most of the time run at same place, buy same guys, only with different name, and phone numbers) will start using it and approach those 100 people to take their advice, if any of them still have left money to trade after dealing with the ABC STOCKS!!


POINT 6:
            This in fact, is only a different version of the 'buy sale 50 50' cheating trick employed by most stock advisory operators.
            We understood how XYZ STOCKS ADVISORY would offer free trials to persons, and then divide them into two groups and give buy and sale calls to different group at the same time, for the same stock/commodity. But, another way to do the same trick is that in this example, the XYZ STOCK advisory will give the buy call to half of those who were scheduled for trials on that day, the half of the persons will be given sell call for the same stock at the same time by another ABC STOCK advisory company which is nothing but another name under which the same operator is operating. So, thus, they employ the same trick in different manner.
The' buy-sale 50 50' trick is a complete cheating and a clear mass malpractice. However, there are also some another 'modest' ways by which these behind-the-scene so called stock advisory operators use the huge data of leads collected by their various different named blogs, sites and cold calling; and employ various probability  theory and games to try their best to 'get you' to pay by disguising a 'good trial', without any relation, relevance, concern or worry of actual analysis, or accuracy and worry or concern for good customer service or any object of customer renewal income or retention ratio.


So, thus once you get into this 'trap of trials', they will get you any how! Yes, if you are not caught in their various trick in the unscrupulous ABC STOCKS advisory, then some days later they will try to get you in their XYZ STOCKS advisory by like this simply changing name, without you coming to know that this is the same operator which you did not like. Then they will change another name, and another site and another phone, because it is a no big thing to change a name, website and phone numbers..is it?


And yes, one another thing. They will come for you even after they have looted you once and you got rid of them. Suppose, got into their one of trick, and by bad luck paid money as fees, and then made a loss in trading/investnig on their so-called tips (you are bound to lose as they are not any type of analyst or do any research or as explained logically, give any service. They only want to take money by using this simple 'business model' or money making idea. So what will the operator do is, that if he got you loss in his say ABC STOCKS advisory, then he will from their pass your data to his XYZ STOCKS advisory, and try to get you in that. And if you did not got in or got in and again lost money, then his another PQR STOCKS advisory is passed on your data and ready to 'churn' you and 'extract' you, whatever 'juice' is left, if any!

So, from now on whenever you stumble upon some website which offer free trial or get some cold-call marketing phone which offer you a couple of days of 'sureshot' calls free trial tips, because now you know that it is nothing but the 'Trap of Trial'
Disclaimer: This article is issues in public interest and do not aim at defaming a particular industry or company. Resemblance of any name mentioned is merely coincidence. Readers are adviced to employ their own discretion. The article has been prepared by writers at MIR, based on their study and analysis. Readers may contact us for further clarification.

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