Pushpa 2 Release Date: If you are a fan of action-packed movies, Pushpa 2 is here know more about release date and you might have heard about the blockbuster movie “Pushpa The Rise”. Directed by Sukumar, produced by Naveen Yerneni and Y. Ravi Shankar, the movie starred the talented actors Allu Arjun and Rashmika Mandanna in lead roles. The film received critical acclaim and was a massive hit among audiences.

The plot of the movie revolves around the character of Pushpa, played by Allu Arjun, who is a smuggler in the red sandalwood forests of Andhra Pradesh. He is the kingpin of the illegal trade, and his life takes a dramatic turn when he falls in love with a woman named Srivalli, played by Rashmika Mandanna. As he tries to keep his illegal business a secret from her, he also has to fight off his enemies who are constantly trying to bring him down.

The movie was a thrilling ride from start to finish, with breathtaking action sequences, stunning visuals, and an engaging storyline. Allu Arjun’s performance as Pushpa was lauded by critics and fans alike, and Rashmika Mandanna’s portrayal of Srivalli was equally impressive.

PUSHPA 2 Release Date

Recently, T-Series released a teaser about the much-awaited sequel of the movie, “Pushpa 2 The Rule”. The teaser has left fans eagerly anticipating the release of the movie. While the official release date has not been announced yet, fans are eagerly waiting for any updates on the release date.

It’s no surprise that fans are excited about the sequel to “Pushpa The Rise”. The first movie was a massive hit, and expectations for the sequel are sky-high. Fans are expecting more thrilling action sequences, a gripping storyline, and outstanding performances from the cast.

The teaser has left fans in awe, with breathtaking visuals and an action-packed sequence that promises to be even more thrilling than the first movie. Allu Arjun’s performance as Pushpa was praised by critics and fans alike, and the sequel promises to be even more impressive.

Read More Informative Post at Timeswrap.com

The first movie was known for its gripping storyline, impressive performances, and breathtaking action sequences. Fans are hoping that the sequel will live up to the expectations set by the first movie. The team of Sukumar, Naveen Yerneni, and Y. Ravi Shankar has set the bar high, and fans are confident that they will deliver a blockbuster movie once again.

Goa, a state located in the western region of India, is known for its stunning beaches, vibrant culture, and colonial architecture. With a rich history and diverse landscape, Goa has something for everyone, from serene beaches to lush forests and magnificent temples. In this article, we will explore some of the beautiful places in Goa.

1. Calangute Beach

Calangute Beach is one of the most popular beaches in Goa, located in the northern part of the state. The beach is famous for its scenic beauty, golden sand, and crystal-clear waters. It’s an ideal place to relax, sunbathe, and enjoy water sports such as parasailing, jet skiing, and banana boat rides.

2. Fort Aguada

Fort Aguada is a 17th-century Portuguese fort located in North Goa. The fort is perched atop a hill, overlooking the Arabian Sea and the Mandovi River. It’s a perfect place to visit for history buffs and architecture enthusiasts. The fort is well-preserved, and visitors can explore the lighthouse, prison cells, and a massive water reservoir.

3. Dudhsagar Falls

Dudhsagar Falls is one of the most beautiful waterfalls in India, located on the border of Goa and Karnataka. The waterfall is surrounded by lush green forests, and the milky-white water cascading down from a height of 310 meters is a sight to behold. Visitors can take a trek through the forest to reach the falls and enjoy swimming in the pool below.

4. Basilica of Bom Jesus

The Basilica of Bom Jesus is a UNESCO World Heritage site located in Old Goa. The church is famous for its Baroque architecture and houses the mortal remains of St. Francis Xavier. The church is a must-visit for anyone interested in history and architecture.

5. Chapora Fort

Chapora Fort is a 17th-century Portuguese fort located in North Goa. The fort is situated on a hill overlooking the Chapora River and the Arabian Sea. The fort offers panoramic views of the surrounding areas and is a popular spot for sunset watching.

6. Anjuna Beach

Anjuna Beach is located in North Goa and is known for its vibrant flea market, which takes place every Wednesday. The beach is also famous for its rocky outcrops and black lava rocks, which make for an interesting landscape. Visitors can enjoy water sports such as parasailing and jet skiing or simply relax on the beach.

7. Salim Ali Bird Sanctuary

The Salim Ali Bird Sanctuary is located on the island of Chorao in North Goa. The sanctuary is home to a wide variety of birds, including kingfishers, egrets, and herons. Visitors can take a boat ride through the mangroves and enjoy the serene beauty of the sanctuary.

8. Candolim Beach

Candolim Beach is located in North Goa and is known for its serene beauty and calm waters. The beach is less crowded than other popular beaches in Goa and is an ideal place to relax and soak in the sun. Visitors can enjoy water sports such as parasailing, jet skiing, and banana boat rides.

Conclusion

In conclusion, Goa is a beautiful state that has something for everyone. From stunning beaches to magnificent forts and waterfalls, Goa is a must-visit destination in India. Visitors can enjoy the vibrant culture, delicious cuisine, and breathtaking scenery that Goa has to offer.

Mental health is a vital component of overall health and wellbeing. According to the World Health Organization, mental health is defined as a state of wellbeing in which an individual realizes their abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to their community.

Unfortunately, mental health issues are pervasive and affect millions of people globally. Mental illnesses such as depression, anxiety, bipolar disorder, and schizophrenia are among the leading causes of disability worldwide. However, mental health is often overlooked, stigmatized, or dismissed, which can exacerbate the problem.

One of the most effective ways to improve mental health outcomes is to improve the way we talk about mental health. Headlines are a powerful tool in shaping public opinion and can influence the way people think about mental health issues. Here are some tips on how to improve mental health headlines:

Use person-first language

Person-first language puts the individual first, not their diagnosis. For example, instead of saying “schizophrenic person,” use “person with schizophrenia.” This way, we emphasize the person’s humanity and avoid stigmatizing them with their diagnosis.

Avoid sensationalism

Mental health issues are complex and sensitive. Headlines that sensationalize mental health issues or use shock tactics can trivialize the condition and cause harm. Instead, use straightforward and informative language that accurately portrays the issue.

Use accurate and inclusive language

Language is a powerful tool and can have unintended consequences. Use accurate and inclusive language when talking about mental health issues. Avoid using derogatory or insensitive language that can further stigmatize people with mental health conditions.

Promote help-seeking behavior

Mental health issues can be challenging to navigate, and many people may feel ashamed or embarrassed to seek help. Headlines can be used to promote help-seeking behavior by providing accurate information about available resources, such as hotlines, support groups, and therapy options.

Emphasize hope and recovery

Mental health issues can be overwhelming, and it’s essential to emphasize hope and recovery in mental health headlines. Use language that promotes the idea that mental health conditions are treatable and that recovery is possible.

Avoid blaming or shaming language

Mental health issues are not the fault of the individual experiencing them. Avoid using blaming or shaming language that suggests otherwise. Instead, use language that promotes empathy, understanding, and support.

Address intersectionality

Mental health is not a one-size-fits-all issue. Mental health issues can intersect with other social factors such as race, gender, sexuality, and socioeconomic status. Headlines should address intersectionality and provide accurate and inclusive language that reflects the experiences of different populations.

Conclusion

In conclusion, mental health is a complex issue that requires a nuanced approach. Headlines play an important role in shaping public opinion and can influence the way people think about mental health issues. By using person-first language, avoiding sensationalism, using accurate and inclusive language, promoting help-seeking behavior, emphasizing hope and recovery, avoiding blaming or shaming language, and addressing intersectionality, we can improve mental health outcomes and reduce stigma.

DeFi is a new type of financial system that is built on blockchain technology. It is designed to be transparent, accessible, and open to everyone. DeFi enables peer-to-peer transactions without the need for intermediaries such as banks or financial institutions. It is a trustless and decentralized system that operates using smart contracts.

What is Defi : Decentralized Finance

Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies.

DeFi, short for Decentralized Finance, is an emerging trend in the world of cryptocurrency and blockchain technology. DeFi refers to a new financial system built on top of blockchain technology, where traditional intermediaries such as banks and financial institutions are replaced by decentralized protocols and smart contracts. DeFi is designed to create a more open, transparent, and accessible financial system that is available to everyone, regardless of their location or socio-economic status.

Benefits of DeFi:

There are several benefits of DeFi. One of the most significant benefits is its transparency. Transactions on the blockchain are visible to everyone, making it easy to track and audit. This level of transparency reduces the risk of fraud and corruption.

Another benefit of DeFi is its accessibility. Anyone with an internet connection can participate in the DeFi ecosystem, regardless of their location or socio-economic status. This level of accessibility is essential for promoting financial inclusion and reducing the wealth gap.

DeFi is also more secure than traditional financial systems. Since transactions are recorded on the blockchain, they are immutable and cannot be altered. This reduces the risk of fraud and hacking.

How DeFi is disrupting the traditional financial system:

DeFi is disrupting the traditional financial system in several ways. One of the most significant ways is by reducing the need for intermediaries such as banks and financial institutions. This reduces the cost of financial transactions and makes it easier for people to access financial services.

DeFi is also disrupting the traditional lending system. In traditional lending, banks and financial institutions determine who can access loans and at what interest rates. In DeFi, anyone can lend or borrow money without the need for intermediaries. This level of accessibility is essential for promoting financial inclusion and reducing the wealth gap.

Another way DeFi is disrupting the traditional financial system is by introducing new financial instruments such as decentralized exchanges, stablecoins, and yield farming. These new instruments enable people to earn interest on their crypto holdings and participate in the crypto economy without the need for intermediaries.

Challenges facing DeFi:

Despite its many benefits, DeFi faces several challenges. One of the biggest challenges is the lack of regulation. Since DeFi operates outside the traditional financial system, it is not subject to the same regulations as traditional financial institutions. This lack of regulation makes it challenging to ensure the safety and security of DeFi platforms and transactions.

Another challenge facing DeFi is scalability. As the DeFi ecosystem grows, it becomes more challenging to maintain the same level of speed and efficiency. This is because the blockchain technology that underpins DeFi has limited scalability.

The Nasdaq Stock Market is an American stock exchange, based in New York City’s Times Square. It was founded in 1971 and is known for being the first electronic exchange, trading stocks through a computerized system rather than on a physical trading floor. Today, Nasdaq is home to some of the world’s largest tech companies and is considered a leading indicator of the health of the tech sector.
The term “Nasdaq” is also used to refer to the Nasdaq Composite, an index of more than 3,700 stocks listed on the Nasdaq exchange that includes technology giants Apple Inc. (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOG, GOOGL), Meta Platforms Inc. (META), Amazon.com Inc. (AMZN) and Tesla Inc. (TSLA).

Nasdaq officially separated from the NASD and began to operate as a national securities exchange in 2006. In 2008, it combined with the Scandinavian exchanges group OMX to become the Nasdaq OMX Group.
The company changed its name to Nasdaq Inc. (NDAQ) in 2015.

History of Nasdaq:

The Nasdaq was established in 1971 by the National Association of Securities Dealers (NASD), which was created in 1939 to regulate over-the-counter (OTC) trading. The Nasdaq began trading stocks in February 1971, with 50 stocks listed on the exchange. Over the years, the Nasdaq has grown to become the second-largest stock exchange in the world by market capitalization.

Nasdaq Today:

Today, Nasdaq is home to some of the world’s largest and most innovative tech companies, including Apple, Amazon, Microsoft, Google, and Facebook. In fact, the Nasdaq is often referred to as the “tech-heavy” stock exchange, given the concentration of tech companies that trade on the exchange.

The Nasdaq is also known for its use of technology to facilitate trading. It was the first stock exchange to trade stocks using a computerized system, and it has continued to innovate in this area over the years. For example, Nasdaq launched its own electronic trading platform, known as the Nasdaq Market Center, in 2006.

The Nasdaq computerized trading system was initially devised as an alternative to the inefficient “specialist” system, which had been the prevalent model for almost a century. The rapid evolution of technology has made Nasdaq’s electronic trading model the standard for markets worldwide.

Nasdaq Indices:

The Nasdaq Composite Index is perhaps the most well-known Nasdaq index. It tracks the performance of all the companies listed on the exchange. However, there are also several other Nasdaq indices that track specific sectors or subsets of companies.

For example, the Nasdaq-100 Index tracks the performance of the 100 largest non-financial companies listed on the Nasdaq. This index includes some of the world’s most valuable companies, such as Apple, Microsoft, Amazon, and Facebook. Another popular Nasdaq index is the Nasdaq Biotechnology Index, which tracks the performance of biotech companies listed on the exchange.

On Dec. 1, 2020, Nasdaq proposed a new rule requiring companies listed on the exchange to report on the diversity of their board of directors. The rule requires companies to include on their boards at least one female director and one who is a member of an underrepresented minority or LGBTQ+, or to publicly explain why they have not done so. The SEC approved the board diversity disclosure rule on Aug. 6, 2021.

Investing in Nasdaq:

Investors who want to invest in Nasdaq-listed companies can do so through a variety of investment vehicles, such as exchange-traded funds (ETFs), mutual funds, or individual stocks. Nasdaq ETFs allow investors to gain exposure to a broad range of Nasdaq-listed companies, while mutual funds may provide more targeted exposure to specific sectors or subsets of companies.

Individual stocks can also be purchased through a brokerage account. Many online brokers now offer commission-free trading, making it easier and more affordable for individual investors to buy and sell stocks.

Conclusion:

The Nasdaq Stock Market has a long and storied history, and today it is known as a leading indicator of the health of the tech sector. With its focus on innovation and use of technology to facilitate trading, Nasdaq is likely to remain a key player in the world of finance for many years to come. Investors who are interested in gaining exposure to Nasdaq-listed companies can do so through a variety of investment vehicles, making it easier than ever to invest in this important stock exchange.

Mutual funds are a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, and other assets. They are managed by professional fund managers who make investment decisions on behalf of the investors. Mutual funds are a popular choice for individual investors who want to invest in the stock market but don’t have the expertise or time to manage their own portfolio. In this article, we will provide a comprehensive guide to investing in mutual funds, including their benefits, types, risks, and how to choose the right mutual fund for your investment goals.

Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund. Mutual funds invest in a vast number of securities, and performance is usually tracked as the change in the total market cap of the fund—derived by the aggregating performance of the underlying investments.

Benefits of Mutual Funds:

• Diversification: Mutual funds invest in a variety of assets, which helps to reduce risk by spreading your investment across different sectors, industries, and geographic regions. This diversification also helps to increase the potential for long-term returns.
• Professional Management: Mutual funds are managed by professional fund managers who have expertise and experience in investing. These managers analyze market trends, economic conditions, and company financials to make informed investment decisions on behalf of investors.
• Liquidity: Mutual funds are highly liquid, meaning you can buy and sell them on any business day. This makes it easy for investors to access their money when they need it.
• Affordability: Mutual funds are affordable for individual investors as they can invest in small amounts, typically as low as $25 per month. This makes it accessible to investors with different financial backgrounds.

What’s the difference between an actively managed fund and an index fund?

Index mutual funds and ETFs (exchange-traded funds) aim to match the performance of a particular market benchmark—or “index”—as closely as possible. Actively managed funds employ professional management teams who try to outperform their benchmarks and peer-group averages. Because index funds generally trade less frequently, they tend to be more tax-efficient and have lower expense ratios than actively managed funds—which could mean lower costs for you.

Types of Mutual Funds:

• Equity Funds: Equity funds invest in stocks of companies that are expected to provide long-term growth. These funds can be further classified based on market capitalization, such as large-cap, mid-cap, and small-cap funds.
• Debt Funds: Debt funds invest in fixed-income securities, such as bonds and treasury bills, that offer regular income to investors. These funds can be further classified based on the duration of the debt instruments, such as short-term, medium-term, and long-term debt funds.
• Hybrid Funds: Hybrid funds invest in a mix of equity and debt instruments to provide a balanced investment portfolio. These funds can be further classified based on the proportion of equity and debt instruments.
• Index Funds: Index funds invest in the same securities as a particular stock market index, such as the S&P 500. These funds offer low-cost investments that track the market’s performance.

How Are Mutual Funds Priced?

The value of the mutual fund depends on the performance of the securities in which it invests. When buying a unit or share of a mutual fund, an investor is buying the performance of its portfolio or, more precisely, a part of the portfolio’s value. Investing in a share of a mutual fund is different from investing in shares of stock. Unlike stock, mutual fund shares do not give their holders any voting rights. A share of a mutual fund represents investments in many different stocks or other securities.

Risks of Mutual Funds:

• Market Risk: Mutual funds are subject to market risks, which means their value may fluctuate based on market conditions. This risk can be reduced through diversification.
• Management Risk: Mutual funds are managed by fund managers who make investment decisions on behalf of investors. If the fund manager makes poor investment decisions, it can result in a loss for investors.
• Credit Risk: Debt funds are subject to credit risk, which means the issuer of the debt instrument may default on payments. This risk can be reduced by investing in high-quality debt instruments.
• Inflation Risk: Mutual funds are subject to inflation risk, which means the value of your investment may not keep pace with inflation. This risk can be reduced by investing in funds that offer higher returns than inflation.

How to Choose the Right Mutual Fund:

• Investment Goals: Consider your investment goals, such as capital appreciation, regular income, or a balanced portfolio, and choose a mutual fund that aligns with your goals.
• Risk Tolerance: Consider your risk tolerance and choose a mutual fund that matches your risk profile.
• Fund Manager: Research the fund manager’s expertise and experience in managing the fund.
• Performance: Evaluate the fund’s past performance, its returns over the last few years, and compare it with other funds in the same

Gross Domestic Product (GDP) is a crucial indicator of a country’s economic performance. It represents the total value of all goods and services produced within a country’s borders during a specified period, typically a year. In this article, we will delve deeper into what GDP is, how it is calculated, and why it matters to a country’s economy.

What is GDP?

Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country during a given period, typically a year. The term “final” means that the goods and services produced are intended for consumption or investment purposes and are not used as inputs in the production of other goods and services. For example, a car that is produced and sold to a consumer is a final good, whereas the steel that was used to make the car is an intermediate good and is not included in the GDP.

How is GDP calculated?

There are three methods of calculating GDP: the output approach, the income approach, and the expenditure approach. The output approach is based on the total value of all goods and services produced in a country. The income approach is based on the total income generated by the production of goods and services. The expenditure approach is based on the total amount of money spent on goods and services.

To calculate GDP using the expenditure approach, we need to add up all the expenditures made on goods and services by households, businesses, the government, and foreign buyers. This includes consumption expenditures (e.g., purchases of goods and services by households), investment expenditures (e.g., purchases of capital goods by businesses), government expenditures (e.g., spending on infrastructure and public services), and net exports (the difference between exports and imports).

To calculate GDP using the income approach, we need to add up all the income earned by individuals and businesses in the production of goods and services. This includes wages and salaries, profits earned by businesses, rental income, and net interest earned on investments.

Why is GDP important?

GDP is an essential indicator of a country’s economic performance as it measures the size of its economy. A higher GDP generally means that a country is producing more goods and services, which can lead to higher employment rates, increased investment, and higher standards of living. Conversely, a lower GDP may indicate that the economy is not performing well, which can lead to higher unemployment rates, lower investment, and a lower standard of living.

GDP also allows for comparisons between different countries’ economic performance. By comparing the GDP of two countries, we can gain insights into the relative size and strength of their economies. However, it is important to note that GDP alone does not provide a complete picture of a country’s economic well-being. Other factors, such as income distribution, social welfare, and environmental sustainability, also play important roles in determining a country’s overall economic health.

• Pushpa 2 Release Date: The Highly Anticipated Sequel to Pushpa The Rise
• Discover the Beauty of Goa: 8 Must-Visit Places in India’s Beach Paradise
• How to Improve Mental Health | Importance of Mental Health
• What Is Decentralized Finance (DeFi) ?
• Nasdaq : All about nasdaq you need to know

Nominal GDP

Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. In other words, it doesn’t strip out inflation or the pace of rising prices, which can inflate the growth figure.

All goods and services counted in nominal GDP are valued at the prices that those goods and services are actually sold for in that year. Nominal GDP is evaluated in either the local currency or U.S. dollars at currency market exchange rates to compare countries’ GDPs in purely financial terms.

Nominal GDP is used when comparing different quarters of output within the same year. When comparing the GDP of two or more years, real GDP is used. This is because, in effect, the removal of the influence of inflation allows the comparison of the different years to focus solely on volume.

Real GDP

Real GDP is an inflation-adjusted measure that reflects the number of goods and services produced by an economy in a given year, with prices held constant from year to year to separate out the impact of inflation or deflation from the trend in output over time. Since GDP is based on the monetary value of goods and services, it is subject to inflation.

Rising prices tend to increase a country’s GDP, but this does not necessarily reflect any change in the quantity or quality of goods and services produced. Thus, by looking just at an economy’s nominal GDP, it can be difficult to tell whether the figure has risen because of a real expansion in production or simply because prices rose.

GDP Growth Rate

The GDP growth rate measures the percentage change in real GDP (GDP adjusted for inflation) from one period to another, typically as a comparison between the most recent quarter or year and the previous one. It can be a positive or negative number (negative growth rate, indicating economic contraction).

Conclusion:

Gross Domestic Product (GDP) is a critical indicator of a country’s economic performance. It measures the total value of all final goods and services produced within a country during a specified period and can be calculated using three methods: the output approach, the income approach, and the expenditure approach. Understanding GDP and its significance can help policymakers, investors, and individuals make informed decisions about economic opportunities and challenges. However, it is important to remember that GDP is not the only measure of a country’s economic well-being and should be considered alongside other factors when assessing a country’s overall economic health.

When it comes to investing for your future, there are myriad paths you could take. There are more than 7,000 publicly traded stocks to choose from, many types of investment vehicles, and ample opportunities to invest on your own or seek the financial help of an advisor. Long story short, there’s no set formula or path that investors are encouraged to follow to hit their retirement number…save for one: long-term investing.

Investing for the long term offers a number of advantages that investors who try to time the market, or day-trade over the short term, simply can’t take advantage of. Here are nine reasons long-term investing is undeniably the smartest and easiest path to hitting your retirement number.

KEY TAKEAWAYS

• Long-term investments almost always outperform the market when investors try and time their holdings.
• Emotional trading tends to hamper investor returns.
• The S&P 500 posted positive returns for investors over most 20-year time periods.
• Riding out temporary market downswings is considered a sign of a good investor.
• Investing long-term cuts down on costs and allows you to compound any earnings you receive from dividends.

Better Long-Term Returns
The term asset class refers to a specific category of investments. They share the same characteristics and qualities, such as fixed-income assets (bonds) or equities, which are commonly called stocks. The asset class that’s best for you depends on several factors, including your age, risk profile and tolerance, investment goals, and the amount of capital you have. But which asset classes are best for long-term investors?

If we look at several decades of asset class returns, we find that stocks have generally outperformed almost all other asset classes. The S&P 500 returned an average of 11.82% per year between 1928 and 2021. This compares favorably to the 3.33% return of three-month Treasury bills (T-bills) and the 5.11% return of 10-year Treasury notes.

It’s really easy for anyone to do
One of the greatest aspects of long-term investing is that anyone can do it. It doesn’t take a Warren Buffett to pick out a portfolio of well-run businesses and hang onto them for 10, 20, or 50 years. Sure, you’re not always going to be right, but don’t worry, even the greatest investors are wrong a third of the time — or more. But with long-term investing there are no hassles about learning different trading styles or platforms since you won’t be an “active trader.”

Historically, if you align your portfolio for the long term, you’re more likely to make money. Although stocks do have a roughly 50-50 chance of rising or falling, stocks can only fall to $0, but they can rise infinitely. If you let your winners ride, there’s a good chance that, over the long run, you’re going to see your portfolio grow in value, especially if you focus on high-quality businesses.

Emerging markets have some of the highest return potentials in the equity markets, but also carry the highest degree of risk. This class historically earned high average annual returns but short-term fluctuations have impacted their performance. For instance, the 10-year annualized return of the MSCI Emerging Markets Index was 2.89% as of April 29, 2022

Uncovering the Long-Term Investing Mindset

Overall, a long-term investment strategy involves holding assets for more than one year. This strategy entails holding a mix of assets, such as bonds, stocks, exchange-traded funds (ETFs), and mutual funds. Individuals with long-term vision must be patient and disciplined. This is due to the fact that they must be able to take a degree of risk while anticipating bigger future profits.

Long-term investing is likely to provide substantial wealth gain. This way, numerous individuals who lack the skills to participate in derivative markets plan their financial futures based on long-term investment returns, which may include dividend income from the ownership of stocks and interest income from fixed deposits.

Exploring the Benefits of Long-Term Investment Stocks

Holding stocks for the long term brings a plethora of advantages for those who are patient enough:

Eliminating Emotions
One of the best aspects of long-term investing is that it eliminates your emotions nearly entirely. Long-term stock investing allows you to focus on the meat and potatoes of your investments, such as a company’s long-term growth potential or the viability of a new business strategy.

Maintaining a long-term perspective helps you control your emotions. You do not need to be concerned about whether you will make a profit or suffer a loss the next day or a few hours and lose sleep over it. Investing decisions may be influenced by emotions, leading to illogical, impulsive choices. Long-term investment implies you are less concerned with daily variations in share prices and can instead focus on your long-term objectives.

Long-term investing is advantageous due to the relationship between volatility and time. Investments kept for longer periods are often less volatile than those maintained for shorter durations. The longer you invest, the greater the likelihood that you will be able to endure market downturns. Long-term returns are often higher for assets (such as stocks) with higher short-term volatility risk than for assets (such as money markets) with lower short-term volatility risk.

The most common way in which traders lose money is by buying Calls when they think the market is bullish and buying Puts when they think the market is bearish. More often than not, they buy OTM Options. Here is the problem with that:

Suppose NIFTY is at 15800, and you buy Nifty Weekly Call option of Strike 16000, the option will have a premium of around 100 Rs. This means that your option starts making money at 16000. But you start breaking even (if you intend to hold till expiry) only at 16000 + 100 = 16100, as you have to recover the 100 Rs premium you paid for the option. That means your breakeven is 300 points away.

Understand the Risks Involved in Options Trading?

When you buy or sell options what are the Options trading risks that you are exposed to? Traders often believe, and erroneously, that buying options is free of risk. Let us say you buy options and lose your premium once it is OK. However, the real Options trading risks can arise even on the buy side if your buy options consistently bomb and eat away a good chunk of your trading capital. Also, when you are the buyer of an option, the time value works against you. That means; even if the price is constant, you keep losing time value and the value of the option keeps going down. But the real risk in options is in writing, so we focus elaborately on the selling side of options risks.

Reducing Your Risk in Trading

For many investors, options are useful tools of risk management. They act as a hedge against a drop in stock prices. For example, if an investor is concerned that the price of their shares in LMN Corporation are about to drop, they can purchase puts that give the right to sell the stock at the strike price, no matter how low the market price drops before expiration. At the cost of the option’s premium, the investor has hedged themselves against losses below the strike price. This type of option practice is also known as hedging with a protective put.
While hedging with options may help manage risk, it’s important to remember that all investments carry some risk. Returns are never guaranteed. Investors who use options to manage risk look for ways to limit potential loss. They may choose to purchase options, since loss is limited to the price paid for the premium. In return, they gain the right to buy or sell the underlying security at an acceptable price. They can also profit from a rise in the value of the option’s premium, if they choose to sell it back to the market rather than exercise it. Since writers of options are sometimes forced into buying or selling stock at an unfavorable price, the risk associated with certain short positions may be higher.

Different option trading strategies

Options trading strategies can be protective like protective puts. Options strategies can also be cost-reducing like covered calls. Options strategies can also be volatile like long straddles and long strangles. Options strategies can also be rangebound in style like short straddles and short strangles. Finally, options strategies can also be moderately bullish or moderately bearish like a bull call spread or a bear put spread respectively.

Benefits of option trading

Options trading have a few interesting benefits. Firstly, they allow you to hedge or protect your risk and define your maximum loss. Secondly, options trading also allows you to take a speculative position in the market by just risking the premium amount. Finally, options trading can also be used for limited risk strategies by combining different options.

Stop your losses fast

Like I just mentioned, losses are easiest to accept when they are small. As they get bigger, it only gets tougher to exit. If trading options with larger than say even 1% of your capital, having a stop loss in place is important. Many retail traders get stuck in this vicious cycle of hope when there is a loss that is too big to accept. Short term or intraday trades turn into long term positions just because of the loss. When you buy options, this decision to hold losing intraday positions overnight only exaggerates the loss. Like I explained before, when you buy options, there is a constant depreciation of time value, and along with it, the premium. Every extra day and weekend that you hold buy option positions significantly erodes the premium.

Naked Put:
Suppose Investor B instead sold Investor A a naked put. Then, they might have to buy the stock, if assigned, at a price much higher than market value.

Naked Call:
Suppose Investor B sold Investor A a call option without an existing long position. This is the riskiest position for Investor B because if assigned, they must purchase the stock at market price to make delivery on the call. Since market price, theoretically, is infinite in the upward direction, Investor B’s risk is unlimited.

What Are Options?

Just as futures contracts minimize risks for buyers by setting a predetermined future price for an underlying asset, options contracts do the same, however, without the obligation to buy that exists in a futures contract.

The seller of an options contract is called the ‘options writer’. Unlike the buyer in an options contract, the seller has no rights and must sell the assets at the agreed price if the buyer chooses to execute the options contract on or before the agreed date, in exchange for an upfront payment from the buyer.

There is no physical exchange of documents at the time of entering into an options contract. The transactions are merely recorded in the stock exchange through which they are routed.

If you’re trading in NSE, you have the option of VIX Futures that can help you quantify the volatility of the market.

Options are contracts that give the bearer the right—but not the obligation—to either buy or sell an amount of some underlying asset at a predetermined price at or before the contract expires. Like most other asset classes, options can be purchased with brokerage investment accounts.

Options trading allows you to buy or sell stocks, ETFs etc. at a specific price within a specific date. This type of trading also gives buyers the flexibility to not buy the security at the specified price or date.

While it is a little more complex than stock trading, options can help you make relatively larger profits if the price of the security goes up. That’s because you don’t have to pay the full price for the security in an options contract. In the same way, options trading can restrict your losses if the price of the security goes down, which is known as hedging.

The right to buy a security is known as ‘Call’, while the right to sell is called ‘Put’.

Options are powerful because they can enhance an individual’s portfolio. They do this through added income, protection, and even leverage. Depending on the situation, there is usually an option scenario appropriate for an investor’s goal. A popular example would be using options as an effective hedge against a declining stock market to limit downside losses. In fact, options were really invented for hedging purposes. Hedging with options is meant to reduce risk at a reasonable cost. Here, we can think of using options like an insurance policy. Just as you insure your house or car, options can be used to insure your investments against a downturn.

Imagine that you want to buy technology stocks, but you also want to limit losses. By using put options, you could limit your downside risk and enjoy all the upside in a cost-effective way. For short sellers, call options can be used to limit losses if the underlying price moves against their trade—especially during a short squeeze.

• Derivative. Options are what’s known as a derivative, meaning that they derive their value from another asset. Take stock options, where the price of a given stock dictates the value of the option contract.
• Call option and put option. A call option gives you the opportunity to buy a security at a predetermined price by a specified date while a put option allows you to sell a security at a future date and price.
• Strike price and expiration date. That predetermined price mentioned above is what’s known as a strike price. Traders have until an option contract’s expiration date to exercise the option at its strike price.
• Premium. The price to purchase an option is called a premium, and it’s calculated based on the underlying security’s price and values.
• Intrinsic value and extrinsic value. Intrinsic value is the difference between an option contract’s strike price and current price of the underlying asset. Extrinsic value represents other factors outside of those considered in intrinsic value that affect the premium, like how long the option is good for.
• In-the-money and out-of-the-money. Depending on the underlying security’s price and the time remaining until expiration, an option is said to be in-the-money (profitable) or out-of-the-money (unprofitable).

Options can also be used for speculation. Speculation is a wager on future price direction. A speculator might think the price of a stock will go up, perhaps based on fundamental analysis or technical analysis. A speculator might buy the stock or buy a call option on the stock. Speculating with a call option—instead of buying the stock outright—is attractive to some traders because options provide leverage. An out-of-the-money call option may only cost a few dollars or even cents compared to the full price of a $100 stock.

Types of Options: Calls and Puts

Options are a type of derivative security. An option is a derivative because its price is intrinsically linked to the price of something else. If you buy an options contract, it grants you the right but not the obligation to buy or sell an underlying asset at a set price on or before a certain date.

A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock. Think of a call option as a down payment on a future purchase.

Call Options

A call option gives the holder the right, but not the obligation, to buy the underlying security at the strike price on or before expiration. A call option will therefore become more valuable as the underlying security rises in price (calls have a positive delta).

A long call can be used to speculate on the price of the underlying rising, since it has unlimited upside potential but the maximum loss is the premium (price) paid for the option.

Put Options

Opposite to call options, a put gives the holder the right, but not the obligation, to instead sell the underlying stock at the strike price on or before expiration. A long put, therefore, is a short position in the underlying security, since the put gains value as the underlying’s price falls (they have a negative delta). Protective puts can be purchased as a sort of insurance, providing a price floor for investors to hedge their positions.

Call option example

A call option gives the buyer of the option the right to buy an asset. On the other hand, the seller of the option has no such right, and is mandated by the option contract to sell the asset to the buyer (if the buyer exercises his right to purchase).

In exchange for effectively giving up his rights, the seller of the option charges a certain amount from the option buyer, termed as the ‘premium.’ Consider this ‘premium’ amount as a kind of a security deposit charged by the option seller to indemnify himself in the event of the buyer not exercising his option.

Let’s take a look at an example to better understand the concept of call options.

Assume that TATA MOTORS is trading at Rs. 200 today. In the near future, say one month down the line, you expect the price of this stock to rise. So, you wish to lock in the current price today, so you can buy at this low price in the future.

However, you’re also cautious by nature, so you want to account for the alternative outcome too – what if the prices fall instead? So, basically, you want the choice (and not the obligation) to buy the share at Rs. 200 in the future.

Here’s where an options contract can help. And this kind of an options contract – one that gives you the right to buy an asset at a predetermined price, on a future date – is known as a call option.

Meanwhile Raz, another trader, is 100% certain that the price of TATA MOTORS shares will fall in the near future. In other words, he’s keen on entering into a contract that will help him sell the share one month later at Rs. 200, since he believes the prices at that time will be much lower.

So, the two of you enter into a contract. You buy a call option from Raz. In other words, you buy the right to purchase the share of TATA MOTORS from him at Rs. 200 one month from now. By that point, you expect the price to be higher than Rs. 200. Ram, meanwhile, sells you that right to purchase the share of TATA MOTORS at Rs. 200.

This price (Rs. 200) is known as the strike price of the option.

Here, you’re the buyer of the options contract and the purchaser of the asset. And Raz is the seller of the options contract and the seller of the asset.

As a result of selling you the right to purchase the share, Raz is effectively obligating himself to sell you the shares in the process. And, as a compensation for any loss that he might incur if you decide to not exercise your option, Raz charges you a premium amount of say Rs. 20.

1. Premium
   It is the price you pay to the seller of the option for entering into the contract. You pay the broker the fee which is passed to the writer on the exchange and thereon. Premium is a percentage of the underlying, which is calculated by several factors, including the intrinsic value of the contract options. Premiums continue to adjust, depending on whether the option is in-the-money or out-of-money
2. American and European Options
   ‘American options’ are options that can be exercised on or before their expiry date at any time. ‘European options’ are options that can be exercised only on the expiry date.
3. Open Interest
   It applies to the cumulative number of available positions on an options contract at any given point in time among all market participants. Open Interest becomes zero for a given contract after the expiration date.

Conclusion
Options may seem like complicated derivative instruments, but they can prove to be quite useful financial instruments, providing you with the risk mitigation or the leverage that you need, while also protecting any downside risk. If you’re well-versed in online trading options, there are sophisticated trading strategies in India such as a straddle, strangle, butterfly and collar that can be used to optimise returns.