Start with paper trading in derivatives, test strategy with small amount

Once you begin trading regularly, do appropriate position sizing, set stop losses, and learn hedging strategies

During the pandemic, Bengaluru-based S G Raja Sekharan decided to try his hand at derivatives trading.

After learning the basics from the internet, he began trading with Rs 20 lakh. Within six months, his capital dwindled to Rs 3 lakh. Raja Sekharan is no novice.

He has been a successful fundamentals-based investor in equities for over two decades and has even taught Wealth Management at Christ University for more than 10 years.   

 

Gamification of derivatives

Axis Mutual Fund recently came out with a report titled ‘Gamification of Indian Equities,’ which dwells on the factors that