Today, we are going to start a new series in which we will provide the understanding about the future and options and things that will required to do hedging future.
This is first article of the series in which we are going to discuss with you about step by step learning of future and options which can be helpful in your investment as a hedging strategies
This is CA Arun Tiwari and our series name is “F & O Shots” and today we are starting very exciting and practical series of future and options and in this article, you will learn in less than 5 minutes of reading that how will you become a hedger and how you will learn and earn using future and option hedging strategies
This is an introduction article in which we will deal with most common question and answer and then we will be going to actual F & O strategies.
Question 1: what is so different about this series?
The most important reason for taking this series as it will be super fast and super simple
Also, this will be more practical step wise approach of how you can start learning F & O and how you can hedge your long term investment so there will be multiple articles based on our super fast you tube videos and these will be beneficial only for serious learner and definitely this will guide.
Question 2: Why to learn Future and options?
Well, there are many reasons but we will explain that how can future and options will be beneficial for you as an investor.
Future and options are the tool of hedging so that as a long term investor, you can make better returns as compare to simple someone who is making earnings through speculation so you can even earn when market is down that means in long term you can generate at least double the return. So, while you are an long term investor you can also earn in short term period and this will motivate you to stay invested in for a long term.
As important part, what exactly we are learning in this article are Nifty, bank nifty and stock. Now the question arises is why this, because for doing hedging in other asset class like in gold, silver or other commodities, it will require huge capital like 1 crore so for retail investor like us only option available is to do hedging in index and stocks and other problem is that transactions in commodity is very volatile so it is very safe to so hedging in index if you don’t know commodity or gold. Also, if you have any doubt in dealing in commodities and still makes the transactions in such commodities then you may lose more than you can earn.
So, my teaching will be more on stocks and in stock also, only in the nifty 50 and fixed stocks and on the index. Now, so it can be hedging which you can learn and use it for some earning also and of course, you can use it for speculation also but that thing we will advice all of you to avoid. It is a strong recommendation to not to involve in Future and options only for doing Speculation because loses can be very deep so we will only focus on Hedging and earnings
Question 3: Should we start learning by self or follow somebody?
Now, Friends the long-term way is self-learning because with your money you have to learn by yourself and best way of learning is by self-learning but for short term you may start to follow someone and in between and parallel you have to start by yourself because journey is very long and until and unless you are not earn something, it will not be interesting.
Question 4: Is there always somebody before you become an expert and whether we should follow anybody who is in YouTube or somebody who can make me rich
You have to follow somebody who can make you rich. The process of getting wealthy is a long way it’s a marathon and it is to be keep going slowly and you always have to faith on somebody who make you rich and who can teach you something and make you understand. Now I have seen lots of people and they show their car and house and they say they are rich and told you that they can make you rich, so it’s not right approach.
If I’m wise, I cannot make you wise. If I’m very rich then I cannot make you rich. You have to do your hard work. I can just give you some guidance, so never follow somebody who is showing his wealth because in the most of cases, they are fake.
Another important point is, if somebody is very famous and have lot of followers, that is not means he is good in teaching also. Its more sensation than the actual knowledge which is shared online. So, most of people where there is lot of followers, they are trying to fool people from their formula and people are just getting fascinated by that and that is the reason most of the time more people get into some big scam so always believe that for making profits it will take some time.
If you are making money even small money but consistently then it will be sufficient. Since, this is the first article so, I’m will not make it too complicated. Hope, you will read our next article and watch our videos on You tube and become the master in Future and options.