What Is Nifty? Article - Finance Articles

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What Is Nifty?

Nifty actually stands for National Stock Exchanges Fifty. The Nifty is an Index, similar to the DOW or S&P Indexes, and it is computed from the performance of the top stocks, which are all from different sectors listed on the NSE, which is the National Stock Exchange in India.

Author: Ken Mccullough

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The companies which make up the Nifty vary at different times based on several different factors which are decided upon by the NSE.

As a 20+ year trader, I am often asked about strategies for trading the Nifty. While the Nifty is not high on my list of indexes that I prefer to trade, that does not mean that it is not tradable or that you cannot make money trading the Nifty. Personally, I use the same strategy to trade any market, whether that is indexes, stocks, futures, forex or bonds. Regardless of the market I choose to trade, I always use price action strategies when it comes to making entry and exit decisions. Price action trading strategies will work the same way in the Nifty as they do when I trade the ES, which is my trading market of choice.

Honestly, once you learn to read a chart, which is what price action trading is all about, there is no reason to trade any market in any other manner. I have taught several Nifty traders how to use price action, as it works the same in all markets. That is one of the beauties of learning to read a chart, as chart reading skills can be transferred to any other market and it works the same on all time frames.

If you are located in the US, or anywhere you can get a good US data feed on the ES, I would suggest that you consider trading that market. However, if you live in India and desire to trade the Nifty, then my suggestion for the best Nifty trading strategy would be to learn to trade price action so that you give yourself an advantage over 90% of all the other retail Nifty traders.

About Author

Ken McCullough is a futures daytrader with 20+ years of trading experience. If you would like to learn more about our price action strategies, please visit our website at http://www.priceactiontradingsystem.com

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