An individual can’t work on multi segments. It is not possible for someone to work on different segments like EQUITY SEGMENT, FUTURE & OPTION SEGMENT, CURRENCY SEGMENT, ETC. Because different segments have different trading styles . This is a modern world , things are changing pretty fast everyday . Therefore if someone wants to do Equity trading then he/she can do well in INTRADAY TRADING as well, he/she can predict views on both sides bullish and bearish . They can make a profit through it. But if someone wants to do POSITION TRADING for 1 week / 1 month then they can only enjoy bullish views on EQUITY TRADING. If your view is bearish for any stock then you won’t be able to do anything. But in FUTURE SEGMENT you can again make profit through both the ways bearish and bullish and same goes with the OPTION SEGMENT as well.
So if a question arises from this what people should do??
EQUITY TRADING OR OPTIONS TRADING??
The answer is very simple if you choose EQUITY TRADING then you can only enjoy bullish view not bearish and also you can’t carry it forward by putting STOP LOSS and within this, if gap down or gap up happens in that case gap up might be a good thing for you coz that will make you profit as you are holding buying position only but in case gap down happens then you will face huge loss in this segment. But if you choose OPTION TRADING in this scenario then there are many strategies in this segment through which you can have an idea from the beginning about the maximum loss you can face or the maximum profit you can earn. The most interesting thing in OPTION SEGMENT is the RANGE BOUND. If in some position you can’t predict whether it will be bearish or bullish then at least you will have an idea in which range you can trade. OPTION TRADING is the only segment where you can enjoy these and earn good profit through it. Where in EQUITY OR FUTURE SEGMENT your view has to be 100% obvious then only you can earn good profit but in OPTION SEGMENT if your prediction on bullish and bearish is not correct but still you can earn profit with the idea of RANGE BOUND.
There are many reasons which makes OPTION TRADING better than EQUITY AND FUTURE SEGMENT. Firstly, You can predict your views on both bullish and bearish in this segment. Secondly, if your predictions are not correct on your views on bearish and bullish still you can use RANGE BOUND if you have an idea about the range of your trading. Thirdly, the most important point in option trading is you can do trade without any haze coz you will always have an idea on the maximum loss you might face or the amount of profit you might earn. In OPTION SEGMENT if you can use the selling strategy while spending time then it will be beneficial to you.