Bank Nifty option trading is the quickest way to earn money from the share market. Bank Nifty is one of the most popular indexes in the Indian stock market. This investment option has a highly volatile nature. For this, you can earn more than 100% on intraday trading in Bank Nifty. But safe traders could not trade in this because you may also lose all your money.
Many investors could not find the strategy or the process. Because investing in bank nifty it requires enough technical knowledge.
If you are looking for the best strategy for bank nifty option trading then you have come to the right place. In this article, I will discuss the best strategy for intraday trading in Bank Nifty.
To trade on bank nifty intraday trading open a Demat account.
Best Strategy For Intraday Trading in Bank Nifty
Bank Nifty is the most volatile index in the Indian share market. Though you can easily earn 10% – 20%, which is great for intraday trading. But most of the time many traders loss money in Bank Nifty option trading because they trade in a wrong process or might be lack of technical knowledge. You have to be aware of the market movement. Because you have to enter in the right level and most important where you exit. The exit level is the most important. It can be a profitable for you or might exit when the stoploss hit.
So let’s know the best strategy for intraday trading in Bank Nifty.
1. Do Intraday
I will always suggest doing day trade in Bank Nifty. Because it is highly volatile. You should analyze the bank nifty movement and then take your position. Just look at the last 15 min chart and analyze in which direction it can move. If you are not sure then take small position make profit with points, that will be safest and it can take you to the long term trade. Do not hold your position for long. Because market can move in any direction by any bad news or any other international markets may effect. That’s why holding overnight is so risky.
Try to always trade in intraday trading and exit at the right time and level. Never hope for a big movement if you aren’t sure. A big movement usually happens when the market breaks its day high or day low, then it will move in a one-sided direction.
2. Always Set Stoploss
Stoploss is the best defender from a huge loss. If your levels can’t sustain and it falls down the stoploss will save you from the fall. Also some time investors can’t properly watch the market movement then stoploss will work for the savior.
3. Sure About You Levels
The best strategy for bank nifty option trading is to ensure your levels are where you will enter and exit. Because the levels are most important as most of the traders can’t find the levels or may enter in confusion. But then they can’t exit, because that level will go down. Thus they trapped in this hype.
So before investing sure about levels. You can do this by chart analysis, this is the best way you can find it.
4. Buy and Sell
The market can open with a gap up or a gap down. That will be harmful if you hold your position overnight. Then you have to know how to predict the gap up or down. Because it will take you to the far away from your position.
When the market hits its day low or opens with a gap down then you buy it and set the targeted level and exit at that level with profit. Analyze the market trend and go with the target. That’s how you can buy.
When the market opens with a gap up or moves in up wards trend then analyze the charts and select the level and buy there. Then mark the level where it can go down and exit at that level.
Bank Nifty is so attractive script for the investors who wants quick profit. It can be effective when you earn with it and it is also more effective when you lose. When it goes high at speed, also comes down in more rapidly. So be aware from it. Do not wait for a big move always, try to make profit with small points. That will lead you to the long term profit.