Many of the people may like Nifty future in stock market and the whole market is behind Nifty. Nifty is the main index which is the combination of top 50 companies in India which is variable from time to time. Trading in Nifty is one of the art in stock market which people easily may get booked their profit or loss as the liquidity is more and also each of the stock in nifty has different market capitalization. Nifty spot and Nifty futures are there and Nifty future is being traded now and Nifty spot is only for an indication to differentiate.
Nifty future started the trading in 2000 and it has different strategies and formulas, indicators,oscillators, charts, levels to predict technically. Nifty has its special and other futures are followed after nifty started. Nifty calculated in the lot size of 50 and its multiples are traded and it has three month future contracts which is known as near month next month and far month. Near month contract is mostly traded with volumes and its turn over is large when compared to others. Period of holding the nifty future contract is three months and it depends on broker to leave the trader when it goes against the trade as the different margin amount should be paid by the trader.
Points to Remember before trading Nifty Future
1. Nifty futures should be traded with clear trend.
2. Beginners may trade initially with one lot to know the how nifty future reacts.
3. Intraday trading in nifty future and other segments should be done with proper discipline. Before placing the order target and stoploss should be fixed.
4. Market may go to any level but our eye should be on target which we fixed, once it reached we must book full target and exits.
5. We should avoid ego, panic, over enthusiasm to do intraday trade.
6. Choosing the contract according to our capital is must and in nifty variance will be little. Majority will trade in current month as if we carry forward we can keep as an holding for three months time period.
7. We should always trade with a plan not with hope and trust on market. Market may not listen us and react for us, but we can understand market technically with those who predicts market like us.
8.Now a days market listens technically and sentimentally, by knowing global news we may plan ourselves before start trading.
9. In stock market we cannot decide the profit, but we can decide the stop loss, by placing strict stop-loss we are acceptable to get the loss minimized.
10. When nifty is in our predicted direction and gives profit we should book at every stage if we place multiple orders and we should not much greed to take lump sum profit. “Greediness is the main loss of many traders”. So we should avoid Greediness in Trading.
11. Nifty future is highly traded volume in Indian market so traders may wait till the end of the day which ever the target or stoploss reaches first.