Stock market comprises of the world of numerous asset classes. These asset classes are divided into several categories of equity & debt mix. Also, market has several SEBI registered analyst who provide different types of stock market tips, commodity tips, share trading tips, tips for intraday trading & intraday trading tips to keep their customers updated about the several asset class floated in the market.
In this approach of providing several tips on various asset classes, often there lies a huge gap between analysing the fundamentals & technical’s of a particular stock. Now the SEBI registered analyst may at times consider a particular debt-equity mix of an asset class to be better than the other and based on this give the stock tips, commodity tips accordingly. On the other hand, they may find the debt-equity mix of a particular asset class to be unfavourable and hence, they advice their clients accordingly.
The biggest challenge faced by the investors or the traders is to analyse the advice given by the SEBI registered analyst for the asset class or stock floated in market.
Apart from this, there are various SEBI registered analyst who provide different advices to different clients for the same asset class. At times, this varies with the short term & long term purchasing ideas of the clients. No matter for what term a stock is purchased or on whatever stock tips, or commodity tips or intraday tips or share trading tips etc. a trader or an investor should be well aware of the fundamentals & technical in the market.
Let us understand with the help of an example:
Suppose Mr. A wants to purchase a stock and he goes to the SEBI registered dealer for a stock tip. Now the dealer will first understand the requirement of the client as to whether he wants to purchase the stock for long term ot short term. Then he would evaluate whether it will be debt or equity that will be more favourable to him. Post this, doe SEBI registered dealer advices the trader or the investor to invests in a particular stock.
On the other hand, there may be traders who may be looking forward for such stock tips that will help them go long in the asset class. Hence, the SEBI registered dealer will evaluate the long term debt-equity mix for that trader or investor and suggest accordingly.