How to Identify Market Manipulation and Avoid Traps?

[Kaushik Trading System]

If you are new to the stock market and wondering “stock market me trading kaise kare”, it’s crucial to understand market manipulation and how to protect yourself from falling into these traps. Market manipulation is when traders or institutions artificially influence stock prices to deceive retail investors. Identifying these tactics early can save you from heavy losses.

Common Types of Market Manipulation
Pump and Dump – Fraudsters hype a stock, driving up the price, then sell their holdings, leaving retail investors with losses.
Spoofing – Fake large orders are placed to create a false impression of demand or supply.
Wash Trading – Buying and selling the same stock to create fake trading volume.
Front Running – Brokers or insiders buy shares before recommending them to others.
Bear Raids – Spreading negative rumors to drive prices down and buy at a discount.
How to Avoid These Traps?
✅ Check Fundamentals – Before investing, always analyze the company’s financials. A sudden price surge without fundamental backing is a red flag.

✅ Avoid Hype – If a stock is trending only due to social media buzz, be cautious. It might be a pump and dump scheme.

✅ Monitor Unusual Volume – If a low-volume stock suddenly shows huge spikes, manipulation might be at play.

✅ Use Reliable Sources for Trading Tips – Follow best online tips for stock market trading from reputed analysts instead of blindly trusting unknown sources.

✅ Set Stop Losses – One of the best intraday trading tips Indian stock market traders follow is using stop-loss orders to minimize losses.

Final Thoughts
Market manipulation is common, but by following basic stock market trading strategies, doing thorough research, and avoiding speculative hype, you can protect your investments. Always trade with knowledge, not emotions!

💬 Have you ever faced stock market manipulation? Share your experiences in the comments below! 🚀

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