Sunday, January 24, 2010

how i first started nifty futures trading...

1) first, learn nifty futures trading with mini nifty, where u need 10000-12000 hold, net leveraged amount is around 1 lac. don't start with full nifty lot or multiple thereof straightaway till you are reasonably "expert" and can afford that much risk.

2) one way to trade is to buy mininifty at support and sell at resistance. support and resistance level can be had from the several discussions on mudraa and all business tv channels....

3) alternatively buy mininifty on "higher lows" and sell on "lower highs". (Higher lows generally indicate that the price is going higher and lower highs indicate that price is most likely going down). book profit at 0.5% to 1.5% as per your comfort level.(This rule to be followed only as long as you are "expert" and have other ideas). Remember: Immediately square off and book small loss if your stop loss is hit or when u get the first feeling that the things are not going your desired way. typically, stop loss should be 0.25% (till you are "expert"). 2 out of 5 times you may have to book small loss. rest 3 times you are likely to get medium to big profit. I call "stop loss" as tripper. Trade like a machine. no emotions pl. Ruthlessly emotionless!!!

4) alternatively, you may buy mininifty on rising triangle and sell on falling triangle. learn about this from net by searching for these terminologies in google. this is a very reliable method.

5) you must trade with spare money which if lost all, will not drive you to crisis.

6) Golden rule; Take risk. No risk, no profit. Take studied risk, if it goes wrong, cover fast, if it goes right, dare to win big till what u r gaining is "big" for you. you never go broke by booking profit. play small till you are "expert". be "expert" but dont be overconfident.

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