New Delhi: Ashish Gupta has made a name for himself as a delta-neutral volatility-based option trader. With 10+ years of experience in trading, his time in the industry has made him an industry expert. And now, he’s using his experience as an options trader to help budding investment aspirants navigate the field. His comments and in-depth analysis on the recent IPO listing that had recently tanked have helped several people by educating them on the importance of researching the market.

Ashish Gupta says that one of the biggest mistakes one can make when making investments in the market is not doing enough research before making the leap. The best way to do your research is by looking into the Red Herrings Prospectus (also known as DRHP) that is submitted to the SEBI. It is also important to know what the company is doing with said funds. One of the tell-tale signs of a positive opening in the IPO sector is seeing if the openings are motivated by growing the company and furthering their business in a productive direction. If the reason listed seems to be something along the lines of paying off debts or providing exits to early investors, that is definitely a red flag.

He also lists several other factors that can lead to one making an informed decision before making the investment. An all-around view of the company and how they operate is a good way of analysing the listing. Knowing how the company model works, what kind of risks are associated with the business, and so on is important. A company is also a social being- how they approach customers, what they are communicating to the public, etc. is also very important to understand. Overall, it is important to have a holistic view of the company before making any kind of investment decision.