Bank Nifty Tips
From the banking sector, Bank NIFTY is basically an index of the 12 highest cap and most liquid stocks. With a lot of traders making a living by solely specializing in Bank NIFTY, this index is presently heavily traded on the stock market. An overabundance of bank option trading strategies has been formulated by many traders who have focused on the trading of bank nifty options, over the years. The final outcome being the market is presently literally messed up with several Bank Nifty Tips and tutorials, as how to effectively trade in Bank Nifty. To help you to comprehend better how to effectively trade in Bank Nifty, and also enable you to take better trades in the future, just scroll through to know 2 Bank Nifty Tips which will prove to be quite useful in the long run.
Let’s have a look as to how to effectively trade in bank Nifty, how to trade bank nifty options as well as some useful Bank Nifty Tips.
Tip 1:
This Bank Nifty Tip applies only to intraday trading.
First, in your charting software, you need to scheme a 5 min Candle Chart. Next, you need to pick the point where you are thinking of starting off your plan of action. Where the first two candles are either both bullish and bearish, you need to pick up that point. You must place the buy order at the high of the second candle, in case you find that your first two candles are bullish. You should also keep in mind that once this is set off, the stop loss order must be set at the low of that same candle. On the other hand, you will do the exact opposite and place your buy order at the low of the candle, with the stop loss order at the placed as a buy order at the thigh of the candle, in case you find that the candles are bearish.
In order to effectively carry out this strategy, you can also engage a bracket order. Your stop loss order is set at 40% of the total height of your candle, when such a situation arises. Here, the target is placed at double the height of the candle, as we are chasing in a 1:2 ratio. Take for an example, you place the target order at 80 points, if the height of the candle is 40 points. You should also take note of the fact that you must always focus on placing sell orders only, if both candles are bullish, and if the first two candles are bearish, vice versa.
Tip 2:
This Bank Nifty Tip is divided into two parts, Sell trades and buy trades.
(a) Sell Trade: Suppose a market opens at a gap down, I.e., from last days close a jump to a lower price, you must always for the chart to fill that gap. You place a sell order at that point, when a candle fills this gap. That the price is likely to drop this point is predicted by in depth analysis and previous trend studies. Therefore, you will stay protected from this fall in price, by the sell order.
(b) Buy Trade: When the market opens at a gap up, this Bank Nifty Tip is specifically designed. When you observe that the market is opening up at a gap up, in order to fill up that gap, you once again wait for a candle and then at that specific point, you again proceed to place a buy order. While being in strong contrast to the “sell trade” section of this strategy, the price here is anticipated to hike. Thus, before this happens, you can get skin in this game and in due course, possibly turn a profit. Although, it just takes a single day to fill the gap, but if for some reasons, that is not the case, you simple need to wait patiently for the gap to be filled, and only then you can place your orders. And this is another Bank Nifty Tip.
Key Takeaway:
Thus, if you are one of those investors who is looking to make quick profits, Bank NIFTY is a charming script for them. However, its volatility warns caution against the risk. If you are entering the world of trading for the very first time, these Bank Nifty Tips are easy beginning points. By following the above mentioned useful Bank Nifty Tips, you can gradually get better and thereby, make more successful trades.
