Stock Market is so Beautiful as an Investment paradise, For people who wants to multiply their wealth. It has various tools available for the same like Cash market, Futures market and Options market.
People often say markets are risky and its not easy to make money for retailers and thats partially correct, but when you know how to minimize that risk part and earn consistent profits by understanding various methods and techniques thats when u get success.
New players always starts with Cash market, they take the delivery in dmat accounts and wait for stocks to rise to book profits and if stock falls then they will book losses, this is what i call an speculation – to make view on some assets and bet on it. Nowadays, intraday short selling is also allowed which allows you to make profit even when stock is falling. But you will get profit in above cases only when your predictions get right. Future market is same as cash Market, difference being the leverage and carry forward benefits. So in future market also you have to be correct in your upside or downside view for making profits.
Now, you might be thinking that what is an Option to this problem, What if we dont want to make predictions, take such upside or downside risk and still want to earn from the markets. Answer is in question itself yes!! THE OPTION In options we can make profits even when we dont have any view in the market of Upside or Downside. So we can be protected from risk of being wrong in predicting stock rise or fall.
