Sir, i want to trade Future trading is there is any strategy to watch i’m new in F&O trading, please give me a idea to trade Future trading.
what are the rules i want to follow?
please advise
If you are taking about stock futures my recommendation is to have atleast 5 lac capital because most of the stock futures lot value is more than 5 lacs and we have to keep stop as low as 0.5 to 1 % for every trade.
If you want to trade nifty futures only we need atleast 2 lacs capital.
I am suggesting capital first because Risk management is the top most important section in any trading strategy.
Most of the people I know lost all the money and quiet trading when they started futures trading with 1lac or less capital.
thank you sir, your right.
please tell me the tips & strategy to watch and how to find the good stock to trade in future trading
please advice
Rule no 1 in investing is Do not loose
Rule no 1 in trading (whether F&O or else) is DO NOT BLOW UP YOUR ACCOUNT.
Actually both rules are easy to read but complicated to understand or implement.
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Check the lot size and do remember that this is the amount you are going to earn or lose with every 1 rupees change
While trading Futures you should be mentally prepared to see few thousand rupee down in position as no one can time a stock and it rarely happen that the price where you bought become the low of the day.
Try not be caught in the trap “buy on rumour and sell on news” ( I shorted bhel when there was announcement during shinzo abe visit regarding prospective contract for metro. Many people jumped in it instantly without giving it a thought that it may take some quarters for the deal to materialise. After that day i never saw bhel going up from where i shorted it. Booked almost 1lakh profit in that)
If possible, try to avoid current month future contract in expiry week if you are taking a position for long term. However if ur view is for intraday only u better take current month.
Also keep a note of the fact whether u r getting the future contract in discount or premium. It may help you understand how other ppl like u are valuing this stock.
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Hello. I’m new to this trading world. Can you suggest me best possible future contract, which may give sufficient return?
Thanx
I wish i could tell you that my friend but do we have such things called “best possible future contract”?
No.
Consider this example. Day before yesterday divislab opened almost 100 points above from its last day close.
so any one who purchased it a day prior earned at least 80000 in first tick.
Now consider second scenario: same stock made a high of i guess 1119 ( means someone bought it at that price) but withing few minutes it went to 1070 and couldn’t move up again.
Same stock made a fortune for someone and for other it turned into a nightmare (those trading in futures) as it went down as low as 1030 yesterday.
So my friend your entry and exit time plays a crucial role rather than the name of stock
Any contract you can trade, but that is really depends on your risk profile and TA knowledge & Trading rules , example Buy low/ sell high, is a simple rule and it is applied in case of Divis Lab as explained by our fellow trader , one would have made money , i would like give example of SBI First it was closed at 325, on next trading day it made low of 305 and now again at 325
TA & Trading rules are crucial than Future contracts
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