What is Nifty And Can You Day Trade It
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Having been a trader for many years, I am often asked, “What is Nifty and can you day trade it?” 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 market one could trade successfully 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 and can you day trade it,” you will know and have an answer readily available.
Comments
salim July 11, 2012 at
please tell me how i can learn “Price-Action course”
in India to trade in Nifty.
Mack July 11, 2012 at
Price action works in any market and on any time frame. Of course every market has it’s own personality, so you need to spend time with that market and learn the personality of it, but in the end, the price action strategies work the very same.
When I talk about “personality” of the market, here is what I mean. A breakout may go only 4 or 5 ticks on average in the ES before failing and reversing, where it might go 8 or 10 ticks before failing and reversing in the 6E. The price action rules and patterns are universal though, and will transfer to any market.
You can obtain our price action manual and study it and our free chart lesson videos every day to learn to trade the Nifty or any other market.
Santosh Kumar September 7, 2013 at
Hi Mack, how r u? I am Captain Santosh an Indian Army Officer. I have been studying all about Trading since 2009 but due to my busy life I can’t do trading. I have been following you on youtube and priceactiontradingsystem.com and now I am a bit confident. So now I finally deicide to resign from my job so that I could do full time trading. Here in India, no broker provided Ninja Trader platform for Nifty or Sunsex aso I am thinking of trading on ES. Plz suggest me a good broker, if possible with a demo account.
Regards,
Santosh
Mack September 9, 2013 at
There are many brokers that offer a free Ninja Trader simulator trial. Just do a search for free Ninja Trader Simulator account and go with one of your choice.