paragraph

The Leonardo DiCaprio-starrer ‘The Wolf of Wall Street’ portrayed financial markets as a place riddled with fraudsters. If we go by what the movie portrayed, it is a place where brokerage houses resort to unethical sales tactics and persuade gullible investors into putting money into penny stocks.

Since the movie is inspired from real events, it can’t, and shouldn’t, be overlooked. It’s a different matter than these events took place far away in Long Island, New York. So, we try to draw some learnings from the 2013 biopic here:

1. Don’t trust any absurd claim made by a white collar professional: In the movie, the protagonist Jordan Belfort tells his staff to introduce themselves as senior vice presidents of Stratton Oakmont when they call prospective investors.

This was a deliberate tactic to portray the callers as educated professionals. But just because someone holds a fancy designation in a brokerage house doesn’t make him trustworthy.

2. Do research the stocks you buy: Just because you get a call from a brokerage house, giving you a number of reasons for buying a particular stock, you should not get carried away. And you should buy a stock only based on your own research, if it indicates strong fundamentals of the company.

3. Don’t put too much money in risky stocks: The victims of Jordan Belfort risked their life savings in the stocks based on promises made by Stratton Oakmont, causing great financial and mental agony. No matter how good the stock appears, one must not invest all their disposable money in one or two stocks.

4. Advice from experts is not always bad: One is likely to view every broker with suspicion after watching the movie. But just because of some fraudsters, one shouldn’t mistrust the entire clan of stock brokers. There are a number of SEBI certified financial advisors. In case of doubt, one can also look for advice from more than one broker.

5. Don’t pay heed to the hype: Oftentimes, stock brokers convince the investors to part with the money because they are foraying into a new paradigm of sorts, or a new market wave as they sometimes call it.

The intent of not being left out can make some investors go overboard with their investments. Remember that nothing is more important than the safety of your capital.So, if you stay on guard and exercise due caution, there is no way that you would be fooled by a fraudster — be it the Wall Street or our own desi Dalal Street.&nbsp;

Investment lessons one can draw from ‘The Wolf of Wall Street’

Financial scams are undoubtedly ubiquitous and aplenty, there are some which are notorious enough to be made into full-length movies. The story of ‘The Wolf of Wall Street’ narrates one such scam, but also offers a number of valuable lessons for small investors

Mutual Fund Central: Common platform to check all MF holdings across AMCs

When the rupee falls against the dollar, what investments you can make

Biggest mistakes to avoid while doing intraday trading

How can you raise an education loan to study abroad from financial institutions?

How do new deposit insurance rules favour small depositors?

Mutual Funds: What is the importance of benchmark index?

Should you invest in corporate FDs? Are they better than bank FDs?

Understanding the power of compounding and factors that affect it

What are Savings Bonds: Here are 9 key features you should know about

Textile Sector: What's in the store?

Owing to a decline in cotton production (~8% YoY) domestic cotton prices have risen ~90% YoY to 272/kg. Correspondingly yarn prices, which were already trading at higher levels, inched up further by ~38% YoY to an alltime high of 385/kg in May-June 2022.

5 main things to do now to achieve financial freedom

Financial freedom implies having enough residual income to live the life you desire without worrying about how you'll pay your bills or deal with an unexpected expense. But how do you get there? Let's find out

5 things to watch out for before buying an IPO

The ideal IPO should be chosen based on various descriptive factors about which one should possess prior knowledge before beginning the investment process! Let us learn about these factors and aspects in detail.

4 key benefits of a health insurance policy

Health insurance has become a requirement in today's society. Because of the high cost of medical care, particularly in the private sector, it is critical that you and your family be covered by trustworthy health insurance coverage. Read on to understand more about health insurance benefits in depth.

4 ways to build your mental map with new investing pathways

The financial planning process helps you assess your current situation so that you define your goals, and devise realistic strategies to accomplish them. Read further to understand the importance of a well-defined financial planning