How to track & avoid Garbage, Crap, Manipulated shares ?

Every Corner of Dalal Street is filled with Manipulators, there are many shares in which manipulators are active and working hard to trap retail Investors and many time they succeed in the game, Recently shares like 7NR, Mauria Udyog, Agro Phos, Panth Infinity, Darjeeling Ropeway and Many more.

On 1st week of December 2019 there were multiple alerts on my Telegram Channel (t.me/cityinvest) and Facebook Page(CityInvestment) Garbage Manipulated stocks like 7NR, Mauria udyog, Agro phos, Sanginita Chemicals but still many people bought that and now they are fully trapped. 

This Manipulation Game is not new in market, In 2012-2013-2014-2015 there were 100’s of shares where I Used to see manipulation on daily basis, sometime I used to book profit from it, sometime I stuck in them, But overall as per passing of time i used to trade with SL-M (Stop loss Market) and from 2016 I stopped trading in Manipulation stocks. Some of the Stocks which i used to trade are listed Below

1. Sawaca Business Year 2012 : From Rs 24 to 230.
2. Meenakshi enterprises  Year 2015 : From Rs 54 to Rs 300.
3. Grandma Trading Year 2013 : From Rs 3 to Rs 29.
4.  Krishna Ventures Year 2012 :  From Rs 18 to Rs 767.
5. Frontline Business Solution Year 2012 : From Rs 20 to Rs 120.

In My early years of Stock market from 2011 to 2015, I used to check the Price Volume pattern, and Sometime I booked good profit sometime stuck in them, But you can’t predict the Manipulators Mind, So new retail traders will get stuck for sure.

How this Manipulation works ?

Let me give you one single and useful example, How a Circus elephant attracts people ? He continue to show the different stunts and the person who are handling elephant used to give instructions through various methods, Same like that, these manipulators Use Different technique to attract Retail Traders.

1. By Sending Message through Name of Kotak, Angel, Zerodha, Motilal : Telecom Regulator TRAI can’t trace them, and Manipulators can register New number on daily basis and you will get many messages to Buy this that shares.
2. By showing previous Return : First they will trap you in game of previous Return, Like “Last 2 weeks we earned 15% Buy now and Earn 15-20% in next 2 weeks“.
3. By Placing multiple Buy orders at Different price : This technique is very old, this is called as artificial order volume Buildup, where Manipulators keeps on placing Buy order at various price and New retail traders will think Buyer are more then seller so it will go up, this is the one of the Dumb thinking among new retail traders. That artificial Buy order are just to trap people mind.

How to Avoid this Manipulation ? 

Many things are common in all these Manipulated stocks

1. Rising Volume.
2. Rising Share price.
3. Every day Circular Trading.
4. Upper Circuit hitting on Daily Basis.
5. High PE, Dividend of .05 Paisa, Pledge shares, BSE Listed

Rising Volume with combination of Rising Share value is first sign of garbage share, there are many other things to focus on to check whether share is garbage or not. Like with the case 7NR, Mauria Udyog, Agro phos all having the same common things. 

After checking the things about Volume and price, next thing is to check about the circuits, If a share hitting Upper circuit on daily basis then that’s the 3rd sign of manipulation in stock, It will continue to hit upper circuit for weeks and this will trap many traders, they will think that they can easily made money by buying today and selling tomorrow but no one knows what in the mind of manipulators.

Continuous Upper circuit is there to attract many and many small retail traders, and manipulators can easily sell their holding at higher price.

Circular Trading is done by manipulators where they keep on increasing share price by buying and selling near Upper circuit price. Example

1. Day  1 Price close at 100 and stock having Circuit Limit of 5%
2. Day 2 Manipulators will place Buy order at 105 and someone from the manipulator side which have some share sell shares at 105 and whole day share will remain at 105.
3. Day 3 Again Manipulators place Buy order at 5% upper Circuit and this way they keep on increasing the share price this is called Circular Trading.
4. They will continue this game for next few weeks.
5. And the moment they sold 99% holding to retail  traders then they start dumping reaming 1% at Market price and that leads to Lower circuit.

These garbage shares are just a kind of dummy shares which have no good financials, You can check financials of these companies.

1. 80% of them Give Dividend of Just .05 Paisa just to trap people mind that it’s a Dividend paying company.
2. Very Very High PE : You can check PE of  7NR it’s near 743, Panth Infinity PE is near to 477.
3. Pledge shares  : Pledge share is most common among these shares  like Panth Infinity have pledge of 37%, Agro Phos pledge is near to 10%.
4. Nearly 90% of Garbage Manipulated companies are listed on BSE only.

So combinations of these points will give you Idea about Manipulation shares & Remember there is no one in market to give you tips for free, If you want to earn from market then use your mind use your Experience.

How to Exit from these Garbage Manipulated shares ?

If you are dealing in these stocks then make sure you have a lion’s heart to take a big hit on your capital Because Once you are trapped in these stocks then no one can help you. This lower circuit will only stop after eroding 50-75% of your wealth.
Even If you place AMO (After Market order) order you still can’t exit these stocks because there are 1000’s of people who placed AMO on daily basis and there is no one to buy. That’s a Simple game of Pump and Dump.

On 1st week of December 2019 there were multiple alerts on my Telegram Channel (t.me/cityinvest) and Facebook Page(CityInvestment) Garbage Manipulated stocks like 7NR, Mauria udyog, Agro phos, but still many people bought that and now they are fully trapped. 

On regular basis i update Manipulated Garbage Shares on My Website : Manipulated Garbage share

On regular basis i update Fundamental Garbage shares on My Website : Fundamental Garbage share