Please stay away from futures, unless you are able to see a bigger picture of global markets and it gyrations. And your TA is reasonably correct at least 60% of time. Typically most retailers who are used to buying and holding cash positions are not comfortable holding short positions. Also when holding futures it creates a shiver in the pit of your stomach, due to the uncertainty.
Before you wish to enter F&O, you should be willing to do a sabbatical. That is getting rid of all your cash positions. And with 50K, do daily buying and selling in cash scrip’s, who’s TA you have analyzed. Minimum requirement – Nifty should be in advancing mode or AD ratio should be positive. Any negativeness, emergency EXIT. NO Carry Forward to next day. SL is 0.4-5% ID of buy entry irrespective whatever the future prospects are. So in 20 trading days max loss is 10%. If you are able to achieve > 1% return after all expenses, take it up to 100000. Do that for the next month. Absolutely NO CF. When you have achieved that, you can go to next step. I will be around….. Meantime maintain a book with daily activity and feelings associated. Do not take assistance in analyzing the markets… Sometime it would take you couple of months to get the real hang of you firstly and then the markets…
In the whole process, improve your TA knowledge…..beyond what you already know…
If you are unwilling to do this, then F&O is not your cup of tea and accept it as such and stay w/CF cash positions…
Every 2-3 months market s give good opp to buy in…… and sell out also..
From:
Sent: Tuesday, May 25, 2010 9:54 PM
To:
Subject: Re: [sharetrading] NIFTY
| Dear Abe Till date i am doing trading with stocks only. If I want to trade NIFTY futures / Mini-NIFTY futures, what is the minimum amount I should have in my account. I am a small trader. I use only buy and sell strategy on stocks. sometimes it will give gain for me. sometimes i have to hold the stocks due to no intraday gain. I expect your reply. Thanks for your consideration. Shanmugasundaram
I expect Nifty to have topped out in MT and one should make exit at next rise and reversal. I expect NIFTY to turn shortly in near days. Abe |
Happy Trading,
United we grow!!!
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