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Market Intelligence › Basic Terminologies
The business model behind free calls, and the position it puts you in
Published by The Retail Trader · JUL 30, 2026 · Advisory & Research
Even calls that come for free have a business model. Understand that model and the question of why the call was sent answers itself.
The most common model is the funnel — free calls gather a crowd, and a paid service is sold afterward. Here you are not the client, you are the audience.
The second model is one of volume, where different people are given different calls and only the ones that turned out right are shown.
These problems belong not to any one group but to the model:
• A call sent to everyone at once in an illiquid stock pushes the price up by itself.
• You get your entry at a price that has already been created after the call.
• No exit call comes, or it comes very late.
• The track record is always shown selectively.
If you cannot state the reason for an idea, you cannot build a stop loss for it either. And a position taken without a reason always rests on someone else's decision — even if that decision was never made for you.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed by the exchanges, SEBI and RBI from time to time, so verify every number yourself with your broker or the official source.