As you must know, the NSE stands for the National Stock Exchange of India and it is Indian’s largest financial market and since its establishment in 1992, the NSE has grown into a very sophisticated, electronic market that ranks thirdplace in the world for transacted volume. MCX on the other hand is the Multi Commodity Exchange of India. It is an independent commodity exchange that has its base in India. MCX is regarded as Indian’s largest commodity futures exchange and it offers futures that trade in bullion, some agricultural commodities, non-ferrous, and energy.
Formerly, trading in stock market was conducted through brokers but the ultimate gift of information technology to the stock market world of trading is advanced online trading platform that truly terminates all major hassles in the field. Online trading is the safest and easiest way to generate a decent profit through the stock market with the assistance of trading software. Trading in both NSE and MCX can be fun and very rewarding. To generate a decent a profit from these exchanges requires a lot of concentration and one important thing to keep in mind, however is never to risk more than 2% of your trading capital on every trade.
Make Use of a Trading System
Online trading systems are used by professionals and beginners intraday traders alike. An online trading system has the potential to deliver high accuracy if it is effectively done with optimal usage of indicators, good assessment of market mood and strict rules. ORB also known as Opening Range Breakout is a good example of an online trading system that can adequately increase your chances of winning.
To simply increase your success rate of generating that decent income you would need to have a plan. An opening range is when a stock creates a range in the first 30 minutes of trading in a day. While the highs and lows of the time frame is seen as support and resistance. Some simple strategy to follow are;
- Buy when stock goes above the opening range high
- Sell when stock goes below the opening range low
Conditions to Trade
- Always respect support and resistance level. Don’t buy below a resistance level and don’t sell above a support level.
- Try as much as possible to trade with two lots, with one lot, book 50% as soon as you see few points profits and the second lot can be used for taking advantage of daily trends
- Do not trade with ORB if the opening range is too wide, you can use other trading systems in such case
- In case of news flow like manufacturing, inflation, policy decision etc. avoid opening range break out trades.
Where to Place Stop loss
Having an idea of where to place your stop loss in a trade is a good way of maximizing your profits and reducing risks. You can place your initial stoploss below the opening range and your trailing stop loss as soon as the stock moves in your favor.
When to Book Profit
You can book full profits when the trade is in the direction of higher time frame chart or opening range break out occurs after a brief period of consolidation.