The Dark Truth of the Stock Market

This document discusses the “Dark Truth of the Stock Market,” detailing the potential for market manipulation and the deceptive practices of some financial educators who sell expensive courses.

The SEBI claims that there is a stark reality to the stock market, including the potential for manipulation and deceitful tactics used by some to sell courses.

Market Manipulation and “Pump and Dump”

The document highlights that influential people can manipulate stock prices.

1. Rakesh Jhunjhunwala’s Statement (Alleged): It is mentioned that the late Rakesh Jhunjhunwala, in an old meeting, allegedly stated that he could “manipulate” the market, meaning he could execute a “pump and dump” scheme.
2. Defining “Pump and Dump”: This is explained as buying a large quantity of a stock, causing its price to rise (“pump”), and then selling it at the higher price (“dump”), which can cause the stock to crash, leading to a lower circuit and heavy losses for the company and other retail investors.
3. Example: Someone buys 10 lakh shares of a ₹10 stock. The price rises to ₹15–₹16. They sell, causing the price to drop significantly.

Jane Street Manipulation Case

A recent case involving the American trading company Jane Street is cited as an example of large-scale manipulation.

• The Incident: On July 3, 2025 (as per the text), SEBI (Securities and Exchange Board of India) allegedly issued a notice to Jane Street to pay over ₹4000+ crore for manipulation.
• The Scheme (Bank Nifty): The company allegedly engaged in “pump and dump” in Bank Nifty futures, specifically on the day of expiry.
• They would first buy the highest weightage stocks of Bank Nifty in cash, causing the Bank Nifty index to rise.
• Simultaneously, they would take a selling position (short) in OTM (Out of the Money) Bank Nifty options.
• A few hours before the market closes (around 1:30 pm – 2:30 pm), they would sell the cash stocks they had purchased.
• Selling the cash stocks would cause the Bank Nifty index to fall.
• Profit: Jane Street allegedly profited in two ways: from the cash stocks (buying low, selling high) and from their selling position in Bank Nifty options when the index fell.
• Impact on Retail Traders: The text suggests that while ordinary people expected to profit on expiry day, they ended up losing money due to these actions, which had been going on for years.

The Dark Truth of YouTube and Instagram

The document strongly criticizes financial content creators on platforms like YouTube and Instagram.

• Deceptive Profits: It is claimed that many creators who show large profits from their strategies are often lying, and their main goal is to sell their courses.
• Course Critique: The author claims to have bought and reviewed many such courses, stating they are useless. The author asserts that what they teach is often available for free and that true learning comes from personal experience in the market, not from a course.
• The True Game: The author suggests that many large course sellers actually lose money in trading and make their profit by selling courses. They use high-profit screenshots to lure customers.
• Strategy Misconception: The text argues that the market doesn’t rely on specific “strategies” or “indicators” for long-term success. It’s more about having the right mindset and market awareness—like checking both sides before crossing a road.
• True Strategy: According to the author, a real strategy involves how you plan the trade, the entry and exit points, and the money you are willing to lose on a single trade.
• Warning: The author warns that course sellers often push one strategy and then, when it fails, introduce another, claiming it’s superior. The core message is to stay away from relying solely on these strategy-based courses, as they won’t work in the long run.

The Dark Truth of Business News Channels

The document also raises questions about the credibility of stock tips given on business news channels.

• SEBI’s Allegation (Zee Business): On July 18, 2025 (as per the text), SEBI allegedly accused 10 people associated with Zee Business of insider trading related to Call and Put options.
• The Scheme: These individuals, who gave buying and selling recommendations (tips) for Call and Put options, would first create their own positions (buy/sell options). Knowing that viewers would immediately follow their advice, they would wait for the price movement and book their profits by selling their positions to the viewers.
• The Takeaway: The author asks if these tips can be trusted and advises the reader to learn on their own and avoid relying on any Call or Put tips.

Important Final Note

• Avoid “Gambling” Trading: The author strongly warns against a high-volume, quick-profit method—buying a large quantity and selling when the price moves up by just 1 or 2 points. This is labeled as “gambling” and is often promoted on Instagram. The author cautions that the price is more likely to fall, leading to a complete loss of capital.
• Path to Improvement: The final advice is to gain knowledge from YouTube and other resources, but then conduct your own research to genuinely improve your skills.