Futures trading

General
1

In recent times I am trading Nifty futures. About 10 to 15 points of gain, I am square off the position., Due to high volatility. I am doing one or two trades daily like this. My question is Am I doing right, as I am new to futures?

Also, the total value comes nearly 50 lacs per day. Is this have any effect on IT, though my gain is around 1000₹.
Nithinji, other traders well versed in this line may please guide me.

2

Also, I income per year shall around Rd. 1.5 lac only. I am a house wife. No other income

3

Points to consider for trade management.

  1. 10-15 points in Nifty is scalping
  2. Future basis in recent times is swinging between minus 5 points to 30 points.( vs spot price)
  3. Scalping without a proper stop loss is super dangerous. A sudden and large move of say 75-100 points will cause scalpers to freeze in fear and loss will add up.
  4. Stops placed too close say 15 points or even 20-25 points is sure to be hit.

Wide stops and RR of 1:2 is appropriate.

3 Likes
4

Thank you Mr.TraderVenk for your valuable guidance. I shall do as per your suggestion.

5

When you are trading in Futures, the turnover is calculated based on your settlement difference [both profit and losses] and not on the total contract value you trade with. For more details on this please go through

The BEL [basic exemption limit] is more that 1.5L PA, so didn’t understand the relevance of restricting your annual income, because if you target earning of ₹1K per trading day [as mentioned by you] with a success rate of even 70% wins and 30% losses with 1:2 RRR, would fetch you roughly around only 1.4L PA. Which itself is very hard to achieve!

My suggestion would be focusing on the trade mechanism, good and bad trades than a fixed earning expectation from the stock markets. Enhance the good trades and eliminate the bad ones, invest time in learning. This is a long journey though!

Good luck!

6

Thank you , Sir. Your views are eye opener for my trading. I shall rewind your suggestions, which will improve my skills.

Please accept my sincere thanks.

1 Like
7

Also, actually I am not going for targets. My feeling is if it is ₹1000 per day is comfortable. If it is not, no problem.

Also, I am not only trader, but investments also there in good stocks and MF through Coin.

This is for your kind information. Thanks.