Interest in Technical analysis

#1
Hello,
I'm new to trading. Currently in the process of developing my trading strategy based on technical analysis of NIFTY futures.
Looking at connecting with experts in technical analysis and discussing on effective strategies.
Thanks a lot !
 
#3
Taking first steps in trading starting with futures? Good luck.
:) I'll paper trade at least for 3 months to see if my strategy is effective and only then get going.

What is the accuracy rate that the best expert traders get in futures though? Just want to get some insights on how effective a trading strategy can be.
 
#4
If you can first understand how to identify Strong Support and Resistance levels, it can be of good help. For example : Nifty Strong Supports : 10000-10350-10630 based on major bottoms recently and strong upmove from these levels. Hope this helps
Thanks so much for sharing that . So as per my analysis, the NIFTY Future is currently on a downtrend with the first support at 10678. I am seeing this on a 1 hour chart. Am I right ? Just vetting my understanding..
 

Tejas Khoday

Co-Founder & CEO, FYERS
#9
Hello,
I'm new to trading. Currently in the process of developing my trading strategy based on technical analysis of NIFTY futures.
Looking at connecting with experts in technical analysis and discussing on effective strategies.
Thanks a lot !
Hi, It's a good initiative to start this thread. Here are my 2 cents:

1. Always practice technical analysis on spot charts, not futures charts. Futures charts have price spikes at times especially during the opening candles which gives a false sense of lows or highs. This is especially true for stock futures. I recommend you use NIFTY spot charts. Only a few brokers provide this.

2. When I first got into the stock markets, NSE had Mini Nifty and the lot size was 25 when the index was only 5200. It was really easy to learn trading index futures without burning much money in case you lose. But now, the index is 11500+ and the lot size is 75. Hence, you'll need to load your account with more funds and start from a higher base. I suggest you start trading equities first. Maybe in 5 different stocks as the rate of learning will be faster with a much smaller capital at stake.

My $0.02!
 

Tejas Khoday

Co-Founder & CEO, FYERS
#10
:) I'll paper trade at least for 3 months to see if my strategy is effective and only then get going.

What is the accuracy rate that the best expert traders get in futures though? Just want to get some insights on how effective a trading strategy can be.
An accuracy of 40% is enough to be successful.
An accuracy of 50% is enough to pursue trading perpetually because this ratio is very good.
An accuracy of 60% is legendary. You can become very rich and scale up with confidence if you are more right than wrong.

The most important thing: How much you make when you're right & how much you lose when you are wrong! For instance, imagine that your hit rate is 40% and your win/loss ratio is 2:1. This will ensure that you will be very successful because although you're getting it right less often, you're making more money so that compensates and protects you in the long-run.
 

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