 |
Golden Rules
Never borrow and invest/trade in Share Market
Before entering trade always calculate risk involved
Maximize Your Profits, Not the Number of Trades.
Make good decisions and winning will take care of itself.
Be Patient Enough to Wait for Good Trades.
Consider your account size for appropriate trading.
Cut Losses Early, Protect Profits with Trailing Stops.
 

|
 |
Why to trade in Nifty ???
Nifty is the King of Stock Market, Rest (Stocks) are slaves and slave will always follow The King, doesn抰 matter how fundamentally strong stock (slave) is.
In Jan 2008 when Nifty was at 6300, Reliance Capital was at 2900 level, Now in Oct 08 Nifty is at 2300, Reliance Capital has followed Nifty and is at 500 level, is there anything fundamentally wrong with Reliance Capital in ten months, NO it is just following The King. NIFTY
If you really want to earn money in the stock market, then don't deal in stocks - trade The King Nifty.
Some advantages of trading the Nifty
1. Highest liquid contract in F&O.
(The daily turnover of nifty futures and options is 2-3 times that of ALL stocks traded on BSE.)
2. Cannot be controlled by any operators. No manipulation because of very broad participation and volume.
3. Nifty is the barometer of the market. If the market does well, Nifty will anyway rise (and vice versa)
4. All good and bad news is reflected in index (Nifty)
5. You can play both sides of the market and profit from rallies as well as corrections
6. You can day trade in nifty or carry forward positions till expiry
7. Low investment: As nifty is least volatile, NSE margins are lowest. This reduces investment amount substantially.
8. Low volatility: No wild swings. Because the nifty index is made of 50 stocks, it is always less volatile than the individual stocks.
Wanna see some wild movements in stock.....
13th Oct 2008 Core Projects
24th Oct 2008 Black Friday
How operator moves Stock price, simply illustrated...
|