Indian Banknifty

1). Entry and Exit will be given during NSE trading timings. 2). Keep it in mind. You have to invest only 20% of your trading capital. Be strict. For example. You have Rs.25000 in your trading account. You have to invest only RS. 5000(20% of RS.25000) in first trade. You made a loss in first trade. For next trade you will be having only Rs.20000 in your trading account. Do the same as first trade. You have to invest only Rs.4000(20% of Rs.20000). For next next trades follow the same as above trades. 3). We will be giving only option buying calls. 4). All you have to do is buy options of given strike price at given price and leave it.  Stoploss will be given if it is needed. 5). Total number of calls per month will be 4-5 calls. Less trading , less brokerage, less market watch are the advantages. Logic behind the success.  Our risk reward ratio is from 1:3 to 1:7. Losses will be covered in next winning trades. Profits will be 3 -7 times of your investment.  We...

Bank Nifty represents the 12 most liquid and large capitalised stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of Indian banking sector. Futures and Options Lot size: 20 shares per lot. We are going to trade only in Banknifty options. Why? Banknifty options are more volatile, more liquid, less investment is enough to start and weekly expiry available.

Many  investors use  a risk/reward ratio to compare the  expected returns   of an investment with the amount of risk undertaken to capture these returns. For example: A trader purchases 100 shares of XYZ Company at Rs.100 and places a  stop-loss order  at Rs.75 to ensure that losses will not exceed Rs.2500. Also assume that this trader believes that the price of XYZ will reach Rs.150 in the next few months. In this case, the trader is willing to risk Rs.25 per share to make an  expected return  of Rs.50 per share after closing the position. Since the trader stands to make double the amount that she has risked, she would be said to have a 1:2 risk/reward ratio on that particular trade. 

Trading is an art. It's a number game. Everyone must believe it. It is very simple as it is buy and sell thing. Yes it is. But you want to know when and how many shares. All you got to know a good winning strategy and correct risk reward ratio suitable for that strategy. It is very important that your risk reward ratio should properly match with your strategy. Then only your trading carrer wins. Otherwise you will have to lose your hard earned money.