This topic will be on Nifty future trading and scalping. Scalping in the equity market is trading with a fast movement with a very fast technical analysis. The aim of scalping is to make a quick profit by buying or selling stocks or commodity or indices and keeping the trading time of very quick and fast. Scalping traders can trade many trades in a day with quick succession. They close one trade and wait for the entry of another trade. Sometimes even there are a mere 5 minutes time gap between two trades. Scalping trader actually trades quickly for a small profit from the particular trade.
Uderstanding Scalping Trades
So we have understood that scalping trader has to be very fast and quick. That means they have to learn the technique of scalping. If you are a new trader, do not try scalping on the first day of your trade. Else you will burn your hand and end in losses. If you are a new trader, start with positional trading first. Once you are conversant with positional trading you can slowly start intraday trading. Once you can take 2 to 4 trades a day successfully, then you can try scalping slowly.
Scalping trader can execute even 40 to 50 trades a day. There are traders who take 40 trades per day and they take the profit of rupees 250, totalling rupees 10000 per day as a profit. So you could easily understand how fast a scalping trader needs to be.
More on the subject
The aim of scalping trading is actually to make a small profit by taking a small stop loss and a small target and to take the profit home very quickly. Show the scalping trader needs to open the trade and close the trade very fast. For scalping trader, they need to have very low brokerage plan with them. Because if the scalping trader does not have a low brokerage, and if he takes N number of trade a day, he will ultimately face loss from the high brokerage plan. So I do suggest that scalping traders to go for a discount broker, like Zerodha or Upstox where they can get a low brokerage plan of as low as rupees 20 per executed order.
How to make scalping work in Nifty future trading?
Suppose, a trader opens a trading order for 10 contracts of Nifty future at the market value of 5000. With a discount broker, he can even Book Profit at 4 to 5 points. So for every trade, he is earning 5 points multiplied by 75 that is Nifty lot size. From every trade, he is earning rupees 375 per lot. If the brokerage and the taxes are deducted ultimately he is making rupees say 350 profit per lot, per trade.
So per trade, a trader is making rupees 3500 profit for 10 contracts. That means if he takes 10 trades a day, ultimately he is earning rupees 35000 profit on that day. There are many scalping strategies that a trader can employ. In this post, we are sharing a nice EMA Scalper indicator for AmiBroker that you can we use for Nifty future trading.
This indicator works in AmiBroker and it works in the rule that the exponential moving average and RSI combination can help in trading. You can see the image below for understanding the scalping indicator in more details.
You can click on the image for a bigger view. So now here is your download link of the Ema scalper indicator. You can download the EMA Scalper indicator by clicking the download link above. But, if you need a more advanced Nifty future trading system for AmiBroker, I suggest you check our paid product Trend Blaster.