Here is some good news for retail traders. NSE is reducing the lot size of Nifty Futures and Options from 50 to 25 with effect from 31 st of October 2014.Here is the NSE Circular on the matter.Thanks to Amber for the link.
This is great news for the novice traders who want to focus on skill development without much damage to their accounts.Those who are currently trading the 50 lot can now experiment with multiple lots. Strategies like part exit and adding to the positions can be tested without much fear and tension.
I was lucky to test this method trading Mini Nifty with a lot size of 20.Otherwise I would have lost 2.5 times more money during the initial stages which could have affected my psychology badly. Later Mini Nifty was discontinued as per SEBI direction. I had made a blog post on that earlier titled RIP Mini
This is great news for the novice traders who want to focus on skill development without much damage to their accounts.Those who are currently trading the 50 lot can now experiment with multiple lots. Strategies like part exit and adding to the positions can be tested without much fear and tension.
I was lucky to test this method trading Mini Nifty with a lot size of 20.Otherwise I would have lost 2.5 times more money during the initial stages which could have affected my psychology badly. Later Mini Nifty was discontinued as per SEBI direction. I had made a blog post on that earlier titled RIP Mini
wat about breakeven points when lot size 25?
ReplyDeleteFor small lot brokerage can be little higher
Delete3-4 points. Still it is helpful for the learner in terms of Financial as well as psychological capital
ST
Awesome, thanks ST/Amber.
ReplyDeleteSir,
ReplyDeleteThanking you and Amber for this useful info.
S.Karthikeyan
Looks like there is revision of number of lots to the downside for almost all scrips http://www.nseindia.com/content/circulars/FAOP27731.zip
ReplyDeleteyay yay...grt news st
ReplyDeletergds
Kishore
ST sir, Would you recommend increasing acceptable max. loss points (as of now- 10 points) after this revision ?
ReplyDeleteHi ST
ReplyDeleteHappy Dusshera to you and your Family!!!
TBP
Dear ST,
ReplyDeleteI'm curious to know your strategy. Are you planning to stick with 1 lot or 50 ( 2lots)? (if you don't mind)
thanks,Tarak
Now I am trading with 100 Nos
DeleteWill continue with that for a while and will scale up later
ST