Step 10: Hedge and Edge

This is our last step of the series and at this step I’m going to teach you about how to hedge and how to generate an edge and how to create your own strategy to become a successful F&O investor. So let’s begin

Hello friends, my name is CA Arun Tiwari and you all are most welcome to my short series of article which is based on my YouTube channel named “Mark2Market” and this is F&O shot series. Today is the last article of F&O shot series. Friends, although this is our last step of the series but it does not mean that we will not write more on these topics. This is just a beginning. I always tried to teach as how you can think by yourself. If you spend time for watching my videos on YouTube or reading my articles then you should also spend time with yourself. In the comment section, I want you to specify what exactly you want me to make in the next series and we will give you 3 options and you have to choose.


First, I want to start a series of technical analysis starting with realistic analysis and then going forward. Where I will tell you basic to advanced.


Second option, I want to make a series on psychology of investor i.e., how you should have psychology and how you should think.


Third thing, I want to make here is about the value investing. So, here I will tell you how will you start value investing. Apart from this, if you want me to make a series on any other topic then please mention that in the comment section. So, any one of three or any other choice, please mention that. So, let’s begin with our main topic.


So, 1st thing to always remember friends in market is hedge, because I have seen people to blow down their hard earn money in one in day or weeks so most important part whenever you go, you have to first ensure that whatever you have, that you should not lose. In stocks, you are here to make money and not to lose one and for that the basic guru mantra is whatever you do always stay hedged. Always control your losses. I have spoken about this thousand of times but this is the truth and you can do this by hedging. Most of my strategies, I tried to go for either profit or zero loss, so that should be your approach. Whatever I teach in my articles, this is only pure hedging strategies. So 1st thing is Hedge.


Second important thing that you have to remember is edge. Say, out of 100 people, if 99 people are making losses why you should make profit. You should always have a clear-cut answer for that and that is your edge. Capital cannot be edge for our case, so what can be edge that is our mindset and the strategy and the last thing what I have to tell you about is strategy.

These 3 things if you are correct and you are right then in long term you are going to make a fantastic profit so the purpose of this whole 10 step series, we want to give a process to how to start a journey. The ultimate target should be to deploy a hedge strategy using F&O in which you develop an edge in long term. That’s only possible when you are focused on one or two strategies. Market pays you for your super speciality and not speciality and that’s why only 1% of people having some kinds of edge are really making money and 99% of the people are just playing like school in the stock market. I know I don’t have lot of viewers/readers and people can say who listens to you but I’m not bothered about who listens. I’m bothered whoever is reading this, should not lose money.


So, at last I just want to summarise this series, if you want to become successful in stock market, F&O can be a very beautiful thing only when you use it only as a hedging. So, always try to get hedging. Now, second important thing, whenever and whatever strategy you have chosen, the strategy is not important, the mastery in that strategy is more important, so you have to stick to that strategy for at least whole period which means one year. Second important thing, if possible then try to choose right people, professional people and not those who are after your money. Choose those people who can give you good advice and make money from other ways also and not only from training. So those kind of people can give you right advices even in that case, try to follow them at least for one year because suppose when you are going to get test with them, they are in loss period and let me tell you about Warren Buffet or any other bigger person, if they are in stock market, there will be a phase in which they will be making losses. This is the process; this is the phenomena.


So, friends, with this, I want to end my article but I have to say bye but not for permanently. We will come with other great articles. In between you are not free, there are lots of videos in my channel and playlist. If you have not watched them yet then go and watch. I know some of them are freshers and they may not be at advanced level but the knowledge will be pure and sure.

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