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As far as possible, try to stick with stock equity only. Don't even consider options. It's a cheap ploy by brokerages to make you trade in them using leverage.See the most beautiful thing about options is that you can make exceptional returns for low amounts invested, especially when it comes to option buying with leverage. You just risk the premium.Being an experienced trader, who is consistently ending in profits monthly, I still get scared of options. All this talk about hedging especially irritates me to the core. Hedging can be done only by hedge fund managers working for DII and FII on an effective basis. So unless you are extremely experienced in the art of shorting options, don't even go there. You don't know what you are getting yourself into. Only if you have loads and loads of money to throw, please look for options trading. Most of the options traders I know are either bankrupt or quit trading altogether.I'm managing to trade just in direct equity and make good returns considering the amount invested. Sample this - I managed a nearly 69 percent returns (still continue to make) starting from 19th September to 11th October, just trading in equity segment. This is a screenshot from my Zerodha console -I'm sure there will be many who argue with me options are safe. NOT AT ALL! They can wipe out capital JUST LIKE THAT.Be a smart trader, trade in small quantities, have a trading system or a mentor to help you, have proper entry and exit, proper SL, practice proper risk management and position sizing, and you'll be fine.Since Jan 2021 I am focusing primarily on Positional trading and then Investing profits in the stock markets, as I am able to compound my money better! You can contact me on Twitter or Telegram at @eruditeinvestor to know more!

The large inflow of funds in Indian Markets from DII, through Mutual funds keeping the markets at all time high.Look at the below FII/DII Purchase/sales details. The days are the past where we use to fear about FII activity, years before if FII starts selling our markets starts to crack but now a days, FII have been net seller but still our market doesn’t even crack 1% because of very strong inflow of funds from DII.1000′s of crores has been pumped into Indian equity markets every month through mutual funds. This inflow increased drastically post demonetization.So the only way, I believe a correction can happen is not because of some PE ratio hitting all time high or crude oil news. It would be because of Mutual funds redemption from Indian investors , if there is some trigger that creates panic among investors, they would first stop SIPs, and few would start redeeming their funds, which would create chain reaction and Mutual funds would be in extreme pressure to sell their holdings in Markets, which could start the sell off.Source: https://www.moneycontrol.com/stocks/marketstats/fii_dii_activity/index.php

Hi there,I won't take much time and talk about a solution which was developed only for avoiding such panic and big losses.Hedging.Hedging was introduced where the investor can hedge their position with futures or options if an investor has invested in equity cash.Big funds like FII and DII use hedging techniques as they have invested big money and share market they are aware that risk can be on the floor any time. They work on their risk management. They know about the panic situations and so are prepared with that by hedging the positions where later they are not much stressed or worried about the market.I hope this helps!ThanksGod bless :) Happy Trading :) Happy Earnings :)WhatsApp 7972172484