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From buy-and-hold to daily options: Indian traders' pivot to options trading and the risk-management debate

1 min read
214 words
Opinions on Indian stocks and mutual funds Indian

Traders in India are swapping buy-and-hold bets for daily options, chasing cash flow over paper gains. A thread from New Delhi Editions shows the shift: 20k capital, 1-2k daily profits, and a hard cap of 5% risk per trade [1]. The setup claims daily returns beat long-term mutual-fund or stock holdings by design.

Why the pivot? Faster feedback, real cash flow, and tighter control over entries and exits—plus the daily compounding effect with smaller capital [1]. It’s a stance that’s gaining traction in online chats on r/IndianStockMarket and related forums, even as some traders warn about the stigma of options trading versus traditional investing [1].

Risk controls that traders rely on: • Never risk more than 5% per trade [1] • Use defined risk-reward, often aiming for RR 1:2 [2] • Stick to stop-loss discipline and clear exit rules [2]

Reality check: intraday scalp trading has its fans and its friction. A thread on IndianStreetBets flags high charges and margin risk, with some suggesting modest ROI on leverage, underscoring why many call intraday scalp trading “not worth it” without a solid system [3].

All this hints at a broader shift: a growing push to compare daily-options strategies against traditional mutual-fund centrism, fueled by real-time liquidity and disciplined risk controls rather than buy-hold narratives [1][2].

References

[1]
Reddit

Why I switched from long-term investing to daily options trading - New Delhi Editions

Former long-term investor shifts to active Indian options trading, claims higher, quicker returns with risk control, beating mutual funds

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[2]
Reddit

Early exit is not less than loss.

Trader shares losses from put bets, regret, and lessons on risk management, SL/RR, discipline; emphasizes patience and systematized trading

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[3]
Reddit

Tried some scalp trading today

Discusses intraday scalp trading, margins and charges; mentions selling Cian Agro stock; seeks learning and help

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