Going with the Intraday Mini-Flow!!

[pakatil]

Sunil I think its a very logical idea for a trader with smaller capital to use Minifty but if anyone can afford Nifty futures then he better trade them only. I myself had started trading with Minifty but the spreads are a bit larger and there's scantier volumes , so there are chances of getting bad fill prices for stoplosses & adds.

Plus in really volatile times Minifty usually goes down/up leaving many orders unfilled

Dear Doctor,

Pls permit me to differ. Have been trading MiNifty since 6 months. Never had any problems with price or order execution. It generally flows along with Nifty ( +/- 1 to 5 points).

I must also admit that I am Tiny, Tiny Trader.

Cheers

 

[HEM]

Satya changed his name,ratan jain proposing for marriage,HEM accepting the proposal,MJ finding it priceless......... what is happening guys ? Are we all "barati s " in this thread ?

YES ,ha... ha...ha....

 

[Prabhjeet]

Pakatil, its good that you have not had such bad experience, I myself had once placed SAR to reverse my long positions to short and price passed without filling my orders, unfortunately I came to know about this only when I had a 200 pt. loss

 

[Prabhjeet]

And yes one more thing, I have never traded less than 10 mini lots, so execution becomes a problem sometimes when I reach 18-20 lots

 

[ratan jain]

similiarly, if u wanna trade with 2 NF (=100), u may go with 5 MiNifty (also =100)....
this is only if u want to book part profit at key levels, and at the same time, be with the system's flow....

purely subjective & as per one's comfort

The slippage is quite high in mininifty....
For 5 min bars today I have seen volume on mini at 9000 and on nifty at 400000

So, there is a little more gap in bid / ask price as compared to the bigger Lot
Just my 2 billion cents

 

[ratan jain]

And yes one more thing, I have never traded less than 10 mini lots, so execution becomes a problem sometimes when I reach 18-20 lots

It depends, if its a quiet time you can get a good fill upto 75 small lots also, but if its a sudden run, like a round figure breakout, or a pivot crack, which many more people other than us also track, then expect about 4 to 6 points slippage

 

[nitinsy]

My 2 cents for day traders

Be extremely careful of what you pay your broker. Let's say you make 50 points on one lot of nifty with one trade in the day. Profit is 2500 without counting brokerage. Brokerage will vary from Rs. 200/- to Rs. 500/- for one lot (round trip). That will reduce your effective profit by 10-20%. More trades you do in a day to get the 50 points, the more easy for you to go broke and your broker to get rich.

If you are serious about day trading negotiate a good rate for brokerage. I used Geojit earlier but it turned out to be expensive for day trading - although it is cheaper than other brokerages.

Recently moved to RK Global. Found them good and extremely cheap. My experience has been good so far with them BUT have traded only for 2 weeks as of now.

Nitin

 

[nitinsy]

Another thing - 2 lots of nifty may seem similar to 5 lots of mininifty (margins, etc). But brokerage can change the game if your broker charges flat fee per lot (Geojit does). If brokerage is % of contract value then it won't make a difference.

Nitin

 

[Sunil]

Sunil I think its a very logical idea for a trader with smaller capital to use Minifty but if anyone can afford Nifty futures then he better trade them only. I myself had started trading with Minifty but the spreads are a bit larger and there's scantier volumes , so there are chances of getting bad fill prices for stoplosses & adds.

Plus in really volatile times Minifty usually goes down/up leaving many orders unfilled

Pakatil, its good that you have not had such bad experience, I myself had once placed SAR to reverse my long positions to short and price passed without filling my orders, unfortunately I came to know about this only when I had a 200 pt. loss

I agree with here fully.... it's only when your risk appetite is less, then you should go for MiNIfty.
Problem with carrying multiple unbooked MiNIfty lots is when it's time to SAR - same experience, order may sometimes not be fully executed. Spreads are more.
I have seen this often...
for example:
NF prices - 3510, 3510.50, 3511, 3511.2, 3511.8
MiNifty - 3510, 3511, 3511.3, 3512
For scalping trades, MiNifty is absolutely no-no.

But here, our purpose is different... ensuring profit booking regularly.

Also the levels are different in Nifty and Mini NIfty!! Difficult to place Limit orders or SAR!!! -Shravan

This should not be a problem - if one can apply this system to stocks, then why not MiNifty... in charts, there would be max 1/2 points difference between NF & MiNifty....

if u get the hang of the system, you can trade any LIQUID scrip/index...

 

[beethoven]

Trading with minifty is basically for people who have less capital and less risk appetite (essentially beginners). Yes volume issues and slippage (orders not getting executed in case of sharp moves) are there. But great for learning. I think one should be trading minifty only upto 6 or 8 lots at one go, beyond that one should shift to Nifty. Easier to handle and by that time the person would have anyway gained enough experience and confidence to graduate into big league of Nifty traders.

Trading is hard and unforgiving. The mistakes are punished mercilessly - no God here to pray to, to save you. Perhaps no other profession gives rewards and punishment so fast.The decision to take it up as a profession is one's own but once decided one has to give it one's best shot. No half hearted measures.

Many here are full time traders and have gone thru hard times in terms money loss, loss of confidence, mental agony and of course the thrilling experience of making money {and of late a new quest (and has become mine also)- as per Saint - to put in that perfect trade again and again}.

Happy flow trading friends

Bee