very Low Risk Nifty Futures trading Plan!!

#1
My Trading Plan
I would like to start the NIFTY FUTURES trading from next month. Please find below my plan and let me know whether it will work out or not.

Am gonna open account with R.K.Global. its 9Rs. per lot.

I would like to start with low risk low return pattern.

So as my brokerage plan, my breakeven point is 2.15 points.

If i buy Nifty Futures @ say 6000 and sell it @ 6010.
so my profit is 6010-6000=10-2.15(brokergage,breakeven)=7.85*50(1 lot)=Rs.392.

day trading in nifty futures with just 10points target calculation is really reasonable and i could acheive it.(if am good in following the market trend)

if i trade twice a day, my profit would be Rs.392*2=Rs.785 per day. If i trade for 10days in a month i can get a profit of Rs.7850 per month which is more than 20% of returns per month.

I feel that with 10 points target in Nifty futures is a reasonable target.

could some one please guide me whether this plan will work out?

Note: I do not want to do delivery based trading in nifty futures,bcoz anything may happen over night which could result in gap up or gap down opening next morning which will badly affect my capital and put me in loss.
 
#2
My Trading Plan
I would like to start the NIFTY FUTURES trading from next month. Please find below my plan and let me know whether it will work out or not.

Am gonna open account with R.K.Global. its 9Rs. per lot.

I would like to start with low risk low return pattern.

So as my brokerage plan, my breakeven point is 2.15 points.

If i buy Nifty Futures @ say 6000 and sell it @ 6010.
so my profit is 6010-6000=10-2.15(brokergage,breakeven)=7.85*50(1 lot)=Rs.392.

day trading in nifty futures with just 10points target calculation is really reasonable and i could acheive it.(if am good in following the market trend)

if i trade twice a day, my profit would be Rs.392*2=Rs.785 per day. If i trade for 10days in a month i can get a profit of Rs.7850 per month which is more than 20% of returns per month.

I feel that with 10 points target in Nifty futures is a reasonable target.

could some one please guide me whether this plan will work out?

Note: I do not want to do delivery based trading in nifty futures,bcoz anything may happen over night which could result in gap up or gap down opening next morning which will badly affect my capital and put me in loss.
Making 2 trades of 10 points profits every day is a bit tough. But making 100 points in a week is not very tough. Try to catch the trend once trend has reversed and then ride the trend and also add at specific points thereby you will make much more than 10-20 points but such opportunities dont come every day.

You have not taken the trades which will result into a loss into consideration . 30-40 % of the trades are going to be loosers.

Good Luck to you in your trading venture....

Smart_trade
 
#3
hey thanks for your reply!!

i didn't mean that getting 10 points profit everyday. getting 10 points profit for 10 days,on an average we have 20 sessions, out of that just 10 sessions is taken into consideration.

So as per your suggestion we need to trade only when we have strong buy signal or sell signal,correct? we can trade for 10 points profit in these days and achieve the target.

will this work out?

or

instead of focusing on 10 points profit in a day, we can wait for one strong trend and aim for maximum profit, i.e. 50 or 100 points.

which one will work better,with low risk appetite ??
 

columbus

Well-Known Member
#4
we can trade for 10 points profit in these days and achieve the target.

will this work out?

or

instead of focusing on 10 points profit in a day, we can wait for one strong trend and aim for maximum profit, i.e. 50 or 100 points.

which one will work better,with low risk appetite ??
Most of the people lose money in stock markets for 2 reasons GREED & FEAR.
After successfully attempting the small target of 10 points,(which is relatively
easy to meet),the bar is rised to 20,30,40....TRAP.
 

Raju

Well-Known Member
#5
Hi sanjayspeilberg,

Few more points u have think of...

  1. At times power/electricity plays hide and seek..So UPS/Battery - Important
  2. At times trading software can have problem.If u are using web version it can slow down.-
  3. Maybe ODN Dt/TradeTiger, any other good s/w should be used.
  4. Always keep broker's Dial & Trade number in hand.
  5. At times u are waiting for 10 points but suddenly someone buys huge lot - Points drastically can change in any direction.So u'r stop loss is necessary .In profit also u have to be take care as sudden spikes can turn u'r profit to loss

Above are few points which should be thought of while preparing a Plan.All the above I have learnt from senior members and experience.

Thanks,

Raju
 

gauharjk

Well-Known Member
#6
Most of the people lose money in stock markets for 2 reasons GREED & FEAR.
After successfully attempting the small target of 10 points,(which is relatively
easy to meet),the bar is rised to 20,30,40....TRAP.
Absolutely the most awesome piece of advice ever.

Thank you for it.

I just cannot avoid Greed and Fear. I become greedy when I am making money, but the trend reverses, eating profit and even leading to loss. I become fearful when the stock I buy is volatile and I sell out quickly, only to feel bad afterwards.

For example, today I bought ACC futures @ 955. The stock climbed to 962. I held on for more... (GREED). The trend reversed and the stock went down to 951... (FEAR). I was afraid I would lose money on this trade, so I waited a while, and sold off at 958. Later today, the stock made a high of 999. Lost Rs 10000 in profits in one single day due to greed and fear.

Greed and Fear suck. I hope I can become better...

Cheers!
 

columbus

Well-Known Member
#8
Absolutely the most awesome piece of advice ever.

Thank you for it.

I just cannot avoid Greed and Fear. I become greedy when I am making money, but the trend reverses, eating profit and even leading to loss. I become fearful when the stock I buy is volatile and I sell out quickly, only to feel bad afterwards.

For example, today I bought ACC futures @ 955. The stock climbed to 962. I held on for more... (GREED). The trend reversed and the stock went down to 951... (FEAR). I was afraid I would lose money on this trade, so I waited a while, and sold off at 958. Later today, the stock made a high of 999. Lost Rs 10000 in profits in one single day due to greed and fear.

Greed and Fear suck. I hope I can become better...

Cheers!
It is true.It is difficult to eliminate Greed and Fear altogether. But we can
control it.100%greedy.....90%greedy......80%greedy.....70%greedy....so on.
Some goes with fear also.Moreover the difference between them is as thin
as WAFER.Because if you are not GREEDY then you are termed as a person
having lot of FEAR ,vice versa.
It is easy to meet smaller targets ,many times, rather than Big targets
lesser number of times.This is particularly true in case of INTRADAY trading.
 

columbus

Well-Known Member
#9
Hi sanjayspeilberg,

Few more points u have think of...

  1. At times power/electricity plays hide and seek..So UPS/Battery - Important
  2. At times trading software can have problem.If u are using web version it can slow down.-
  3. Maybe ODN Dt/TradeTiger, any other good s/w should be used.
  4. Always keep broker's Dial & Trade number in hand.
  5. At times u are waiting for 10 points but suddenly someone buys huge lot - Points drastically can change in any direction.So u'r stop loss is necessary .In profit also u have to be take care as sudden spikes can turn u'r profit to loss

Above are few points which should be thought of while preparing a Plan.All the above I have learnt from senior members and experience.

Thanks,

Raju

Good advice by RAJU.

Just add ONE more point.Failure of internet connection.It is always better
to have Broker's dial number to place order ,in case of power failure/Internet
connection failure.This problems have remedies at our end, Power (UPS) &
Internet (Wireless Internet),but is broker's server is down ,we have to depend
on Telephone of broker.
 
#10
I think the best trading strategy is yet to be determined... ;) However, I think it's important to have a decent capital and have realistic expectations from the markets. When I started, I felt it would be easy to make at least a percent a day on my capital... However, over the years I've learned that if I make 3-5% returns consistently, I'm a good trader. Even that is hard for me, so I'm a below-average trader... I wouldn't call myself a failure because I haven't yet quit. :D
 

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