Don’t trade in F&O with more than 1% of your net worth.
Tldr: It is not worth it.
We all know most retail traders lose money in F&O, due to N number of reasons. Be it not the right mindset, lack of exit plan, sunk cost fallacy or greed. In a nutshell, they lose money.
Trading options, if at all profitable in long term, is a full-time job. You need to be able to read and reach to charts. “Price action” is the key, where “action” is more the more important word. If you are a regular working guy, student, or just some guy with money and want to try your hands in F&O, don’t invest more than 1% of your net-worth. You don’t realize how quick you get addicted and that you’d keep losing more and more trying to recover the money you’ve lost or by revenge trading. And even within that, do not deploy the entire 1% in one go. If you think your capital is too less even to buy a single lot with this practice, then to be honest save your funds, grow your capital by other means, else high chances you would deplete these funds as well.
Instead try to research about stocks, companies with hidden potential. Try to learn how to read and understand a company’s financial status. The fundamentals remains the same for all companies of a given sector. You just need to study one company thoroughly. Just pick your favorite sector and get started. Again, this is when you want to be an active investor.
For passive investors the best option is still and always will be mutual funds. You might not see immediate gains, but if you diligently invest (just start an SIP and forget), 3-5 years down the line, you will see the gears shifting.
Investing is a game of patience. You should always question when you see/hear high returns. Even while choosing mutual funds, don’t look at 3 years returns. Every tom, dick and harry has made profit since covid lows. Look for at least 5-10 years to be on safe side.