Futures
and Options, since its inception in June
2000, has been a favourite market for investors
and traders. This is in spite of investors and traders
knowing that all the transactions in this segment
fall within a higher tax bracket when compared to
the other investment segments and instruments available.
Another important thing to be noted is that only
a few select stocks are allowed to trade in this
segment. Out of the 1000 - 1200 stocks which are
traded everyday on the NSE only 20 to 30% of the
stocks in this segment are lucky to be allowed to
be traded. In spite of these hurdles this segment
manages to produce an approx turnover 3 times that
of the cash market traded cumulative both on the
NSE and the BSE.
The investment in this segment is less as compared
to the other segments of the stock market and
the returns are multi baggers. THESE ARE THE MOST
IMPORTANT REASONS WHY THIS SEGMENT IS POPULAR.
However, when an investor enters this segment it
is necessary for him to know not only when he should
trade, but also to have a simple approach while
investing. A random urge to buy or sell shouldn’t
be the rationale for trading in this segment.
One should not forget that all the positions entered
in this segment are leveraged. Therefore entering
a trade without the right knowledge about this segment
is like carrying a ticking bomb in your pocket.
This workshop is for beginners and meant to give
them a strategy or an idea, using which they can
pick stocks or select a strategy to enter into a trade.
Now while doing so they also have to take into consideration
the limitations or the challenges this segment has
in the Indian markets for an individual when he
decided to trade, in terms of liquidity and cost
for holding or entering a position.
So if you are convinced that your money is hard-earned
and you deserve the right knowledge before entering
this ‘High Risk and High Returns’ segment
then click on ‘CONTENTS’ button
to view the contents of this workshop.
