HOW TO TRADE USING INDIAN STOCK TIPS

The first and foremost important thing for a trader to follow is a strategy. A trader without a strategy is sure to FAIL. There are no shortcuts to success. The levels which are provided on this blog for stocks as well as for Nifty Futures are time-tested strategies which yield results whichever way the market trades. Trading using these levels have been highly profitable. In order to benefit out of these levels and to use them judiciously, it is prudent that everybody understands how to trade using these levels.

If you would have noted, the levels come with "Buy Above" and "Sell Below" levels. Let us take a sample call to discuss how to use this strategy.

NIFTY FUTURE TIPS FOR 23/11/2009
Scrip	TRIGGER	PRICE	SL	T1	T2
NIFTY	Buy above	5092	5067	5108	5128
	Sell below	5042	5067	5028	5003

Let us take the above as a sample call. It is the Nifty Future Trading tips for 23/11/2009. Since these levels are given well in advance before markets start trading, it is useful for everyone so as to be ready for the trading day ahead.

Buy above is given above 5092, so the price to buy Nifty futures should be keyed in at 5092.05 in the terminal or you can place your order through your broker and in the same way, you should place a sell below 5042, which means at 5041.95. Unlike other trading strategies, we do not follow any other rule of waiting for a certain time or anything. Once the said level is breached either up or down, we enter a trade.

As soon as a level, either buy above or sell below is breached, our order would get executed and the first thing we ought to do is place the mentioned stop loss without fail in the terminal or through the broker. So now, effectively what we do is limit our loss, just in case the trade goes against our strategy. Also, we need to keep a close watch on the scrip or indices whichever we trade using this strategy so that we book our profits as well.

So, how do we go about doing it (booking profits). Once T1, hits, we ought to book part of our profits. So meaning part profits, how is it possible. Those trading single lots of Nifty Futures can or should book profits fully at T1. Those who opt to trade 2 or 3 lots can book as discussed below. Once T1 hits, if you are trading with more than one lot, book one lot at T1 and IMMEDIATELY move the Stop Loss to the Buy or Sell Price WITHOUT FAIL. This will effectively put us in a profitable position, even if the scrip we are trading were to whipsaw and hit the entry price.

Now, if it did not hit the modified SL and moves towards T2, book the rest of the holdings fully. The same strategy applies to both Buy and Sell. The actual trade for 23/11/2009 was, it triggered "Buy" and it hit T1. So in effect the profit if someone were to have traded with one lot would have been 16 x 50 = 800 minus whatever brokerage one pays. (approx Rs 150).

Though this may seem like peanuts. If one were to diligently use these levels on a daily basis the returns one could get from it are mind boggling.

In the coming days, we plan to post actual contract notes of the actual trades done using these levels so that everyone could benefit out of these levels.

These levels will remain FREE for life. Any suggestion for improvement is always welcome.

Disclaimer: Above recommendations are based on technical analysis and Personal observations. Due care has been taken while preparing these comments; no responsibility will be assumed by the author for the consequences what so ever, resulting out of acting on these recommendations