Let’s understand the meaning of safety. Safety means very low or negligible chances of losses. Like when we invest money in Bank FDs, we say it is safe.
Can we get this kind of safety in the Equity market?
Normally, when we listen to the word “Stock Market”, we get the feeling of heavy movements. Big money comes and Big money goes.
But we can restrict the losses of the Stock Market by using Options.
It can make such a combination, that will provide you limited risk downside and still can generate unlimited returns upside.
There will always be inevitable ups and downs in the market ups and downs in the market. Your money will be safe as long as you keep acquiring the necessary knowledge to take advantage of the market.
Don’t do
- Speculation
- Don’t indulge in futures and options
- Don’t do day trading
- Don’t do short term trading
- Don’t act on tips
Do invest in quality mutual funds and let it stay there. Watch the magic of compounding. Your investment will grow manifold.
These are however subject to market risks. Study the schemes-related documents carefully before investing. Finally, this question might otherwise be framed – ‘Can you ever trust your own judgment’? Leave your opinions in the comment section below …
Happy Investing!