Posted by: Babu Suresh | March 14, 2012

Trading Plan – Nifty Day Trader

We have been seeing last few sessions, Nifty Futures gap opening on the higher side and then onwards most of the times trading side ways, barring few spurts. I would recommend shifting your focus on stocks that are giving very good trading opportunities instead of chasing Nifty Index Futures.

I found recently while talking to some traders, some are HNIs known to me personally, that they are sticking with Nifty index futures and options because their brokers charge less brokerage for trading Nifty Index Futures and options. This strategy will not work all the times. You are sitting whole day waiting for 15, 20 points while there are other instruments that give fabulous trading opportunities.

Next 2 days are not going to be that easy if you are to follow the same trading strategy because, as the media always proclaims our market follows global market, its not going to be so. Its not only the volatility or gap opening that will mar any trading chances but you will even end up losing all the profit that you made so far this month. Therefore, trade prudently by selecting one or two stocks that suit your trading temperament instead of playing with Nifty Index Futures and Options.

I would fully concur with any arguments that the margins of stock futures are very high that everyone cannot go after them. The only sensible option in that case would be to trade cash instruments until the tide settles down.

Healthy And Wealthy Trading

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