Are you a brave-heart?…..
If your answer is yes, then Banknifty Share Price is the Index you want to trade. It is volatile, wild and an absolute dream for intraday traders. Of course if you know what you are doing! Its not an index for the fain heated.
It represent about 17% of the free float market capitalization of the stocks listed on NSE and 93% of the free float market capitalization of the stocks forming part of the Banking sector universe as on March 31, 2017 – according to www.nseindia.com
With daily turnover around INR 2000 Crores this is one of the favorite instrument for traders. Bank Nifty Futures is loved by those who like it fast and furious!
You can explore nseindia.com website for more details on Bank Nifty Share Price.
Click Here: Live Charts [Nifty, Banknifty, Stocks]
But as great as the information above sounds, trading Bank Nifty Futures is like taming a wild beast. It is far more volatile and fickle minded than Nifty Futures.
So if you are trading Nifty Index Futures you have to work doubly as hard to trade Banknifty Index Futures. But the reward is double as well!
So how do you trade Banknifty Share Price?
Now trading derivatives requires a skill set that is far more active than what long term investors might need. You need to agile and exremely flexible if you want to trade this index successfully.
Why does this matter…..
To trade successfully in Indian Markets and specifically the Nifty Share Price you need to have following things,
- A “STABLE TRADING PROCESS”. A process which takes into account all the vital factors that affect the movement of these financial instruments.
- A trading method which takes “LOGIC” into account and does not blindly depend upon the repetition of patterns (which seldom repeat exactly by the way).
- A set of Risk Management Principles which not only tell you “where to put your STOP LOSS”, but also tells you “HOW MUCH to trade”.
- A reliable method to book profits telling us “WHEN TO GET OUT”.
Well this is not something new I am talking about, but it is important. Whenever you are trying to learn something new, you will feel that internal resistance, and that is what keeps you fro growing. If you really like to learn how to tame this beast called Bank Nifty Index.
Now technical analysis is being used widely and for so long to try and make sense of the markets. [bctt tweet=”But markets keep evolving and so do we.” username=”aniruddha4tew”]
I cant emphasize enough…..
The four major components or tools that we use to trade these extremely volatile and competitive markets are as follows,
- Market Profile [Become A Pro Trader]
- Order Flow [Looking Behind The Obvious]
- Volume Spread Analysis [Trade With Smart Money]
- Technical Analysis [Understand Markets]
We use the above methods because they provide us with sound logic to take decisions in live markets. when the pressure get high, it becomes really difficult to remain objective, but these tools have stood the test of time and have given us the confidence to trade in live markets. As a full time trader myself, I can say that, having a system based on logic is indispensable in such competitive markets.
So here’s the deal…..
Bank Nifty Share Price Trade Example 06-08-17
Below is the EOD Report for Banknifty Futures. We at GTTE share these Potential Auction Paths (PAP) daily. Our sole aim is to help you learn how to understand markets and trade them with consistent profitability.
We see markets accepting in the spike from previous day. But by the time we closed we lacked two key components that were expected to be present if the smart buyers were present and smart sellers were present. Sounds confusing lets dive in…..
- We dont have elongation, so smart buyers were not interested in buying high. (Click here to know what Smart Money does)
- We have Poor High which indicates even though we have lower prices there are no strong sellers at highs.
I have also shared the Potential Auction Paths on the charts for trading guideline for the next day.
Prices did move lower the next day, but took support at the references we laid out on charts the prior day. Now we did not know whether we will find support at first or second reference. But we had logic for selecting both the references. And when we saw our logic being validated we entered our positions.
Thats what we do at GTTE, period!
How can you actually use this…..
Now I have not shared this trade to brag, but just to show that we dont rely on patterns to repeat, but track the markets in real time using Auction Market Theory Core Principles [We use 5 Core Principles, 3 Smart Money Objectives]. By using this framework we are able to remain objective even in the most volatile situations.
And I am about to finish my current project “Market Profile – Gateway To profits” course. This course is designed around the Market Profile Framework that will help you put all this seemingly confusing information available on the internet into a cohesive decision making process and really reap the benefits.
Thats not all…..
So what can you do “now” to get in sync with the Smart Money, to understand what is Auction Market Theory and to start using these fantastic tools such as Market Profile, Order Flow and VSA. Well you can do the following things to start with.
- Sign up to our mailing list [click here] and receive latest updates right into your inbox.
- Join the Slack Group [you will get the link upon sign up to our mailing list] and get the updates in real time on Nifty and Banknifty.
- Read out blog for interesting posts on various topics discussed above as well as daily updates.
- Subscribe to our YouTube Channel to watch the video logs of daily updates as well as a few of our webinars on above topics.
- And you can get in touch with me on any of the Social Media Platforms [Check At The Top For Social Media Icons – Click and Connect].
- Dont hesitate to use the Contact Form or the Chat Widget to get in touch with us, we are always up for a nice chat.
Now Its Your Turn To Speak! Tell Me I Am Listening!
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Do you find the information shared here useful?
Which part are you excited to explore further to use in your trading?
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