Operator-driven counters should be avoided

i. Exhibit high volatility:
All operator-driven stocks see a meteoric rise and fall. These stocks hit the upper circuit often while these are on a rise. Similarly, they go on a free fall when things are bad. If one gets on the wrong side, he ends up with huge losses.

ii. Illiquid, high bid-ask spread:
Usually these stocks are illiquid and they have a high bid-ask spread. One cannot exit from the stock easily or with relative less profit.

iii. Investing in such stocks could be risky for retail investors:
While many operator-driven stocks allow traders to make a quick buck, for retail investors who have invested in these stocks, things could be difficult. Retail investors are advised to stick to large cap stocks with good track record of performance and reliable managements. Investment in mid and small cap stocks are advisable only after thorough research.