What are some good strategy to trade in NSE or BSE?
TRADINGFEATURED
"The best strategy for you is the one that fits what you want from trading"
It’s the million-dollar question, what strategy is the best?
And the answer...
The best strategy for you is the one that fits what you want from trading.
Let me explain.
When looking for a strategy to make you profitable, ask yourself these questions :
Do you want to be holding trades for a long time or be in and out? Are you comfortable holding trades day and night? Are you okay with following quicker moves? For me, I like being in and out of trades the same day.
Now you will need to ask yourself which styles of analysis make the best sense to you? I started with mostly support and resistance but I found that analysis a little rigid and now I have built all my strategies on chart patterns and some indicators instead. My advice is to try different styles and see what clicks for you. Then go full stream ahead in that style.
Next, ask yourself do you want/like to be taking lots of trades or do you prefer taking very few? This is a wide scale, you could be taking 10 trades a week on some strategies whereas others will only provide 0–2. Again try different strategies and you will quickly find what clicks for you. I personally like a middle ground. I don’t like taking tons and tons of trades but an average of 1 trade per day or a little less has been perfect for me most of my trading career.
The final key question is what sort of win rate and risk-reward mix will you find easiest to manage psychologically. Generally speaking, you will find that a higher-risk reward strategy will have a lower win rate and a lower-risk reward strategy will have a higher win rate. I again like a middle ground here, taking 1:3 or 1:5 risk reward trades as this is a healthy risk reward and still allows me to keep my loss rate low and win rate pretty high.
Credit: Quora