From SIPs To Options: How To Trade Smart In Indian Markets

A viewer from Pondicherry asks: “I have been investing in equity mutual funds via SIPs for the past two years and hold some long-term stocks. Now, I want to start option trading with small capital, proper risk management, and a solid risk-reward setup. I tried personally, but six out of ten trades hit stop losses. How should I go about it?” Kush Ghodasara, Managing Partner at Invest Value, shares his expert advice. He emphasises that as a long-term investor, one should continue SIP investments in mutual funds and focus on blue-chip stocks for stock-specific trades. He suggests sticking to front-line Nifty 50 or Nifty 100 stocks for short-term option trading, as these have lower probabilities of triggering losses compared to mid-caps. Kush also highlights the importance of high-beta stocks in trading, while maintaining strict risk management strategies to protect your capital. Learn how to approach option trading carefully, manage risks effectively, and make informed trading decisions while staying aligned with market movements.