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Price Action Trading System's
What is Nifty?
By Mack
Having been a trader for many years, I am often asked, "What is Nifty?" Nifty, also known as the Nifty Fifty, actually stands for National Stock Exchanges Fifty. The Nifty is an Index, similar to the DOW or S&P Indexes, and it is computed from the performance of the top stocks, which are all from different sectors listed on the NSE, which is the National Stock Exchange in India. The companies which make up the Nifty vary at different times based on several different factors which are decided upon by the NSE.
As a 20+ year trader, I am often asked about strategies for trading the Nifty. While the Nifty is not high on my list of indexes that I prefer to trade, that does not mean that it is not tradable or that you cannot make money trading the Nifty. Personally, I use the same strategy to trade any market, whether that is indexes, stocks, futures, forex or bonds. Regardless of the market I choose to trade, I always use price action strategies when it comes to making entry and exit decisions. Price action trading strategies will work the same way in the Nifty as they do when I trade the ES, which is my trading market of choice. I have nothing against the Nifty at all, it's just that I prefer trading the ES because of the liquidity, ease of entry, low commissions and low margin requirements for day traders.
Honestly, once you learn to read a chart, which is what price action trading is all about, there is no reason to trade any market in any other manner. It does not matter if your market of choice is the Nifty, ES, NQ or even a single stock, as trading price action works the same in every single one. Sure, there might be some small but different tendencies that each market displays, much like personalities, but overall, a chart is a chart once you learn to read one. I have taught several Nifty traders how to use price action, and they have used it with the same success rate that we see in any other market. That is one of the beauties of learning to read a chart, as chart reading skills can be transferred to any other market and on all time frames, and you always get the same results.
If you are located in the US, or anywhere around the world in which you can connect to a reliable US data feed on the ES, I would suggest that you consider trading that market. However, if you live in India and desire to trade the nifty, then my suggestion for the best Nifty trading strategy would be to learn to trade price action so that you give yourself an advantage over 90% of all the other retail Nifty traders. We offer a trading course at our web site that will teach you everything you need to know about trading with price action. Regardless of which way you decide to go, the next time someone asks you "what is Nifty," you will know and have an answer readily available.
uestion. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He could have 300 carts or just one! Likewise, if you hear that he's is trading for a living, don't get too excited. His trading rules may be written to trade 1 contract per trade to supplement his retirement income. In any business, it all depends on you!! Follow these links to learn more about my Trading Rules or if you are interested in Trading for a Living. Thanks for reading and Make it a Profitable Day! Shawn W. Cooke How Much Does a Professional Trader Earn? by Shawn W. Cooke 8/01/11 I can't tell you how many times I get asked this question. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He could have 300 carts or just one! Likewise, if you hear that he's is trading for a living, don't get too excited. His trading rules may be written to trade 1 contract per trade to supplement his retirement income. In any business, it all depends on you!! Follow these links to learn more about my Trading Rules or if you are interested in Trading for a Living. Thanks for reading and Make it a Profitable Day! Shawn W. Cooke How Much Does a Professional Trader Earn? by Shawn W. Cooke 8/01/11 I can't tell you how many times I get asked this question. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He a
By Mack
Having been a trader for many years, I am often asked, "What is Nifty?" Nifty, also known as the Nifty Fifty, actually stands for National Stock Exchanges Fifty. The Nifty is an Index, similar to the DOW or S&P Indexes, and it is computed from the performance of the top stocks, which are all from different sectors listed on the NSE, which is the National Stock Exchange in India. The companies which make up the Nifty vary at different times based on several different factors which are decided upon by the NSE.
As a 20+ year trader, I am often asked about strategies for trading the Nifty. While the Nifty is not high on my list of indexes that I prefer to trade, that does not mean that it is not tradable or that you cannot make money trading the Nifty. Personally, I use the same strategy to trade any market, whether that is indexes, stocks, futures, forex or bonds. Regardless of the market I choose to trade, I always use price action strategies when it comes to making entry and exit decisions. Price action trading strategies will work the same way in the Nifty as they do when I trade the ES, which is my trading market of choice. I have nothing against the Nifty at all, it's just that I prefer trading the ES because of the liquidity, ease of entry, low commissions and low margin requirements for day traders.
Honestly, once you learn to read a chart, which is what price action trading is all about, there is no reason to trade any market in any other manner. It does not matter if your market of choice is the Nifty, ES, NQ or even a single stock, as trading price action works the same in every single one. Sure, there might be some small but different tendencies that each market displays, much like personalities, but overall, a chart is a chart once you learn to read one. I have taught several Nifty traders how to use price action, and they have used it with the same success rate that we see in any other market. That is one of the beauties of learning to read a chart, as chart reading skills can be transferred to any other market and on all time frames, and you always get the same results.
If you are located in the US, or anywhere around the world in which you can connect to a reliable US data feed on the ES, I would suggest that you consider trading that market. However, if you live in India and desire to trade the nifty, then my suggestion for the best Nifty trading strategy would be to learn to trade price action so that you give yourself an advantage over 90% of all the other retail Nifty traders. We offer a trading course at our web site that will teach you everything you need to know about trading with price action. Regardless of which way you decide to go, the next time someone asks you "what is Nifty," you will know and have an answer readily available.
uestion. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He could have 300 carts or just one! Likewise, if you hear that he's is trading for a living, don't get too excited. His trading rules may be written to trade 1 contract per trade to supplement his retirement income. In any business, it all depends on you!! Follow these links to learn more about my Trading Rules or if you are interested in Trading for a Living. Thanks for reading and Make it a Profitable Day! Shawn W. Cooke How Much Does a Professional Trader Earn? by Shawn W. Cooke 8/01/11 I can't tell you how many times I get asked this question. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He could have 300 carts or just one! Likewise, if you hear that he's is trading for a living, don't get too excited. His trading rules may be written to trade 1 contract per trade to supplement his retirement income. In any business, it all depends on you!! Follow these links to learn more about my Trading Rules or if you are interested in Trading for a Living. Thanks for reading and Make it a Profitable Day! Shawn W. Cooke How Much Does a Professional Trader Earn? by Shawn W. Cooke 8/01/11 I can't tell you how many times I get asked this question. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He a