Futures trading strategies zerodha

Zerodha Margin Policy - Key Points to Note

Day traders typically make more than a few trades every day; compare that to position traders who might make only one trade a week. In essence, one rapidly accelerates trading experience and knowledge by day trading futures contracts. A day trader must follow the strict discipline to be successful.

The temptation to make marginal trades and to overtrade is always present in futures markets. Commissions can add up very quickly with day trading. Many day traders wind up even at the end of the year, while their commission bill is enormous. Most people who day trade futures are not able to earn money. A lack of preparation and discipline is usually their downfall. Day trading can be an unforgiving game.

However, for those willing to do homework, develop a plan, and stick to it with discipline, it can be a profitable venture. The Dow futures , E-mini Nasdaq futures, and E-mini Russell futures are also popular among futures day traders who focus on the stock market. The 10 Year T-Notes, soybeans, crude oil , Japanese yen, and Euro FX all have enough volume and daily volatility in their futures prices to be candidates for day trading. Each futures market has different characteristics, so one needs to study the markets before day trading to uncover and optimize techniques and develop a plan.

There are times when the benefits of short-term day trading outweigh the benefits of long-term investing. The volatility of markets tends to dictate which approach to markets is most suitable. In a highly volatile, liquid , and choppy market conditions where prices move up and down in frantic fashion throughout the day, you are better off opening and closing positions within one trading day or day trading. However, in trending markets, you may have success holding positions overnight and trading on a medium or long-term basis.

Longer-term trading can mean holding a long or short position overnight, a few days, weeks, or for more extended periods. However, the lack of volatility in markets can often frustrate day traders. The author does not accept any liability for the use of this system. Users of this system who buy or sell securities based on the information in this system are solely responsible for their action. We may or may not have any position in given stock.

All prices relate to the NSE, unless otherwise mentioned. We advise users to check with certified experts before taking any investment decisions. You are responsible for your own investment decisions.

If you don't accept this responsibility for yourself, then you should not use this system. If any other entity, individual or service provider also giving the same system and recommendation than we are not responsible for that. We encourage all investors to use the information in this article as a resource only to further their own research on all featured companies, stocks, sectors, markets and information presented on the article.

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