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Who are the Operators in stock Market?

Introduction:


Many times you have got seen that sudden spike or crash in a stock without any reason. These are happened due to operators activities. 

Now question is that, 

Who are the Operators? 


Operators


Operators are the participants of market who manipulate the share prices for private gain. They have enough money to manage the volumes in the market. It's usually a cartel of brokers, speculators and sometimes even companies insiders. 

Operators are sharp minded people's they know that they cannot manipulate the large cap and mid cap stocks as they're in focus of big investors and financial institutions. They target on small cap and penny stocks which attracts retail investors most. 

As retail investors are attracted towards these stocks it's easy to trap them. 


How Operators Trap the Retail Investors:


This can be explained with the assistance of a story. 
          

           The Monkey Seller

        
" Once  upon a time, a person whose name was Ram came in a village and offered the villagers to sell him monkeys and get 1,000 for per monkey. But, the villagers denied his offer. So, he increased the worth to 2,000 for per monkey. So, the villagers agreed the deal.  They went to the jungle and caught the monkeys. In this way they have sold all the monkeys from the jungle. 

One day Ram has made announcement of a special offer of Rs 5000 for per monkey just for 2 days. So, the villagers went in search of monkeys. They saw that near the village a person whose name was Shyam selling monkeys for Rs 4000. They  bought all the monkeys and returned back to the village. They went to sold it to Ram but Ram wasn't looking anywhere."

In this story we've got seen that how the Ram and shyam sold the monkeys to villagers. 
In this story -
Monkeys- Shares. 
Villagers- Retail Investors. 
Ram and Shyam- Operators. 

First, they artificially raise the prices of shares by doing heavy buying and attract the retail investors. Then they sold it at high price and retail investors got trapped in that shares. 

On 24th December, 2019 at 12:10 Pm three stocks were became the victim of Operators activity. 


1)
Maurya Udyog Ltd:


Maurya Udyog
Source: Google




2) 7NR Retail Ltd:


7NR retail ltd
Source: Google





3)
Agro Phos India Ltd:


Agro phos india ltd
Source: Google 





Closing Thought:


The operators normally focus the stocks which are very popular in news or media. They try to take out the number of quality shares from your portfolio and increase the number of poor fundamental shares in your portfolio. 

Do's:


1) As operators have very low control over Large cap and mid cap stocks always prefer to invest in large cap and mid cap stocks. 

2) Invest in fundamentally strong shares. 

3) keep patience don't be fearful after some fall in shares. 

Don't:


1) As operators are very active in small cap and penny stocks avoid it. 

2) Do not give over attention to news, do your research before investing. 

3) Do not be greedy after some rise in particular stock. 

I hope now you know who are the operators and how they work. If you like this article write in comment box. Also, follow me below. 

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