Amidst the bustling energy of the Indian Options Conclave (IOC) 5.0, Pushkar Raj Thakur, a distinguished Mentor, Business Coach, Finance Educator, and Motivational Speaker, shared his insights on navigating the financial markets with prudence and foresight.

Against the backdrop of the event’s theme, “Traders Mahakumbh,” Thakur illuminated a strategic approach to investment, emphasizing the importance of aligning one’s tactics with market dynamics.

Thakur’s trading mantra resonated with wisdom: “Do not fight the market if it is falling or going down.” Rather than engaging in a futile battle against market trends, Thakur advocates for a more nuanced strategy, one that involves investing in index Exchange Traded Funds (ETFs).

His rationale is clear: ETFs provide a diversified exposure to the market, mitigating individual stock risks while offering the potential for steady returns.

The cornerstone of Thakur’s approach lies in capitalizing on market fluctuations, particularly through investing in ETFs during downturns using monthly options strategy – ‘Bull Put Spread’ strategy.

By adopting a disciplined approach of investing on dips, investors stand to amplify their returns while reducing risks. Thakur’s advice echoes a simple yet powerful principle: “If you invest in ETF and then invest again on dips – the return will be higher.”To execute this strategy effectively, Thakur recommends employing the bull put strategy, a sophisticated options strategy designed to capitalize on bullish market sentiments.In essence, a bull put spread involves buying a put option at the money (OTM) and simultaneously selling a put option at the out-of-the-money (ITM) for the same underlying stock and expiration date.

By strategically deploying funds – Rs 10 lakh initially if the market falls by 1%, or Rs 20 lakh margin in the event of a 2% market decline – investors can optimize their risk exposure while maximizing returns.

Crucially, Thakur emphasizes the importance of diversification and prudent risk management. Rather than allocating all funds into a single strategy, he advocates for spreading investments across multiple strategies, thereby safeguarding against unforeseen market volatility.

Moreover, Thakur underscores the significance of maintaining a long-term perspective, advising investors not to succumb to panic amidst minor market fluctuations.

In essence, Thakur’s approach to investing embodies a blend of pragmatism and foresight. By leveraging ETFs, capitalizing on market downturns, and deploying sophisticated options strategies, investors can unlock the potential for consistent returns while effectively managing risks.

As Thakur aptly summarizes, “When we buy ETFs on dips, we are averaging the position,” a testament to the power of disciplined investing in navigating the complexities of the financial markets.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of the Economic Times)