Some strategies to trade effectively in the Futures Segment

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Indian stock market is a lucrative place to earn handsome profit. The key to success in the Indian Stock Market is having a profitable strategy.  An Indian trader has the options to trade in the Cash segment, Futures Segment or Options segment. For trading in the futures segment, traders can trade by relying on intraday futures tips from experts.

For many traders, Futures segment is favourable segment to trade. The reason is that one can gain huge profits by spending very little money. In the Futures segment generally a future contract is signed on a future date. The prices in considerations are also future prices and one can buy or sell based on the prices of future contract.

In the futures segment, a group of stocks is bought or sold which is known as “Lot”. One can buy or sell the stocks in the multiple of these lots. Different people follow different strategies to excel in the futures market. One can also take help of the reputed advisories and trade on the basis of stock future trading tips.

One important strategy to trade in the futures segment is to follow trailing stop loss. In this strategy the current trend is identified and position is booked based on the direction of current trend. A trailing stop loss is then executed based on the price movements. For example if a buy position is booked and the market moves up, the stop loss is also moved or trailed up. This will ensure locking of profits when the market moves in the opposite direction. Trailing stop loss is a very effective strategy, when it comes to the trending markets. Many good advisory firms provide stock future trading tips, with proper stop loss. You can trail this stop-loss to get even better results.

If you are a beginner in the stock market, you can also take help of various technical analysts. These analysts provide stock future tips intraday, to trade in the intraday mode. You can choose to trade as short term investing or intraday trading in the stock market. It is however cautioned here that trading in the Intraday mode is little risky and you must properly use the principles of risk management and money management, while trading in Intraday fashion.

The risk factor in intraday trading can be maintained by choosing a proper stop loss. The stop loss prevents the traders from incurring heavy losses. If the market goes in the opposite direction of what anticipated, the stop loss will get hit, leading to squaring of position at a low loss level. Hence, it is always recommended to trade with strict stop loss.

While trading on the basis of stock market advice from the technical analysts in the form of stock future tips intraday, one must make sure to trade with a stop loss. Trading without the stop loss can be very risky and you can incur huge loss, if the market moves in the opposite direction steeply. Likewise, the principles of money management must also be followed to have success in stock market venture.