Social Investing Sites Where Users Can Share Tips Will Help The Indian Retail Investor

The Indian retail investor is at a great disadvantage to his institutional counterpart. Lack of access to sophisticated tools, research databases, less knowledge and less time are obvious reasons why. Moreover in India, even 'public' information about smaller stocks takes a while to disseminate, due to limited coverage by mainstream media. By harnessing aggregating different sources of information using RSS feeds, and organizing them into categories such as stocks and sectors using search and tags, it becomes much easier for the retail investor to find or be alerted to information that would interest them.

Aggregation is being done (to an extent) in India. However, a credible site that aggregates research and analysis is sorely needed.

If users were able to pick stocks, giving them a rating of ‘Buy’ or ‘Sell’ and specify timeframes, target prices, stop losses, limit orders and so on, and then share this information – it would be incredibly useful. It is critical that along with such shared advice, there is sort of rating for the user sharing the advice (stock picks). This rating must not be user generated, but driven by historical performance of the user’s advice: taking into account return and risk to remove bias and increase accuracy. What’s emerging from this concept is a community for Investors and Traders – a social investing site, but one driven by a member rating system. There are several such sites in the US, but only one or two credible social investing sites in India.

By: Gautam Gautam

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Gautam Kshatriya is author of this article on stock tips. Find more information about share tips here.