Anant Ladha, Founder, Invest Aaj For Kal, says if you are a fresher, I would suggest that the IPO market and probably some swing trading is for you and avoid options. As you become an expert in the market and gain skills slowly, you can move towards options as well.
Clearly, it is very important for an investor to understand the nitty-gritties involved in having your bets placed for the short, medium or longer-term. But what could be the way to get into a short-term bet in the equity market?
In the short term, we have multiple options in the equity market. First is the IPO market. It has been very interesting of late and looking at the Indian economy, I personally feel that if we keep growing, we can have more than 1,000 IPOs in the next five years. So, we can have opportunities out there.
The second option can be swing trading, provided you have that skill and you have that mindset of picking up stocks. Swing trading can be a very good option for you.
Third, a bit of the risky one can be F&O trading in the stock market.
Let us just take all these investment instruments or ways of putting money for short term in the market one by one. Let us talk about IPOs first. What kind of IPO is good for your portfolio? Even if it is a short term or a short-money making bet, how do you analyse if this should be the IPO for you?
Looking at the Indian markets and Indian cycle, the next five years can be huge for IPOs. So, yes, we need to learn how to study IPOs. There can be three