Mrinal Desai's Blog

Equity Derivatives : Curse or a boon !!!

Making investment in the share market for earning higher return is a desire of each and every investor. There are various instruments available in the market carries their own characteristic, but the investor has to understand their need and the characteristic of the instrument before investing their hard earned money. Each and every instrument associated with the different range of risk and return.  
 
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Equity Derivatives

In a wide arena of many Equity Derivatives instruments are the most preferred instruments by the investors. But many a times these instruments prove to be a curse to many of the investors as through their unplanned strategy makes them broke down which disappoint them later with heaps of financial losses. In the other phase if the allocation of funds is done with the planned strategy and a long term visionary approach then the investment will surely prove to be a boon. So now it purely ups to you that how you want to take it.

There are few ideas below mentioned that will help you in making you investment boon rather curse.  

1. Approach - what type of approach you carry plays a very important role. If you are thinking to earn a huge profit in a day or two, then you need to change your approach before investing in these instruments. Try to have a long term vision and approach for which you need to give some time to your investment to get back to you with some of the lucrative profits.

2. Faith - Try to have faith in your investment strategy. The market is surrounded with the rumours all around but all you need to have faith and need to stick to your investment plan. So, always be confident. This will surely help you in earning handsome profits in the near future.

3. Diversification - It is better to make your investment in diversify area as this will helps to reduce the chances of loss. If the loss is posted in a one commodity, then it could be quantifying with the profits of the other commodity which makes your portfolio lucrative.
 
Equity trading and Derivative trading need to be undertake with the rational approach. This will help in getting the maximum out of the box in a proper span of time. So a proper blend of approach and vision leads to long term profitability for Equity trading and Derivative trading.
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