Index trading is a lot safer than trading stocks. Volatility in index contracts are sufficient for a day or swing trader to profit from but not so high that they create problems of setting stops and taking profits.
One of the main advantages of Index trading is that they are not influenced by specific sector or stock based news and developments. This reduces the volatility to a more manageable level and hence controls the risk associated with the trades.
Currently trading occurs in two major indices Nifty and Bank Nifty and to a lesser extent in Cnx IT. Though other indices are available for trading, the volumes are very low and hence they do not form a part of the Index Gains advisory universe. As and when they do, we shall be signaling trades in those indices as well.
HOW DOES THIS TRADING SERVICE WORK?
Trading calls are generated in two different ways. One will be based on Chart Patterns (called CP trades) and the other will be based on Trading System (called TS trade).
The quantity in CP trades can be decided by the subscriber and can be 1 lot or multiple lots. The entry, stoploss, target(s) and expected duration of the trade will be indicated.
In the TS trade, specific quantity will be mentioned along with the usual entry price and stops. In addition, there will be multiple exits and the stops will have to be moved.
The details of how the TS trades are to be worked will be mailed to you and will also be available on our website.
All instructions about the trades shall be sent by sms. But it is advisable for subscribers to log in to the service page on our website as well for better communication. After all, these days, the Sms services have become somewhat unreliable as well as difficult.
How will the Trading calls be delivered?
Details : B or S/ At (price)./ Stop ./ Target 1/2/3./ Duration: ID/EOD/nDays/ GTE / Qty: 1/2/3/4 lots
What will be the frequency of the calls?
No fixed frequency. As our systems generate the trade. But effort will be to have at least 3 trades per week.
Can there be more than one call on the same day?
Possible. If different systems fire signals at different times during the day, then it is possible that we can have more than one call coming out per day.
Can there be multiple positions open with different stops and targets at the same time?
Possible. If entry points are different and trades are open, then they may have different stops and targets.
Will this not create some confusion?
Professional trading requires us to become more disciplined and method oriented in our approach to trading for a living. Extra efforts need to be taken to work this service to its fullest benefit.
How will I know which system has triggered the call? Are the process standardized?
To a great extent we have standardized our approach. The trades will be designated as CP or TS trades. It will not be difficult to distinguish the two trades.
Can I take a discretionary entry or exit with the trades?
You can do so with the CP trades. But for the TS trades, it is better to follow the instructions as we send them. However, please note that discretionary entries and exits are done at the risk of the subscriber and we shall track the calls as per the levels given by us.
Why do you have two types of trades?
Trading should be rule based. We avoid giving out subjective trading calls so as to ensure that the service is as standardized as possible. This makes for easier trade generation, tracking as well as risk control. Hence we have rigorous process based approach to call generation that is distilled down to two approaches.
What is the success rate of the calls?
The back tested records of our TS trades are available with us for perusal by subscribers. We use discretion to pick the time frame of the signal being generated based upon the type of the market currently in progress. We are happy with the success ratio and other parameters of the systems that we use.
Do I need to know the system parameters to use this service?
No. All you need to do is follow the instructions to the best possible way.
Can I get details of the system upon which the calls are based?
No. These are proprietary techniques of Growth Avenues.
How much quantity should I trade on these calls?
In the CP Trade, minimum quantity that can be traded is 1 lot of each index. More than that is your choice.
In the TS Trade, we shall specify the minimum quantity (usually 3 or 4 lots). If subscriber wants to trade more, then it has to be a multiple of the total minimum quantity.
What is the usual stoploss?
We try to keep the stoploss down to around 1-2% of the trade value in most cases.
What are the targets?
In CPTrades, the target is a fixed one. In TS Trade, multiple targets will be mentioned.
Is it possible that there may be days when no trades are given?
Yes. There is no assurance that there will be a trade all the time.
Do I need to check with you if there has been a trade given today?
It is better for you to check the website to see what is the last trade given. You can also call the office.
What if I don’t get the SMS or it comes too late?
We do not control the delivery of SMS messages to your mobile. Hence it is always better to be logged on to our website service page where updates of the calls are almost immediate. We are not responsible for late delivery of messages. We shall not entertain any complaints regarding SMS delivery, which please note.
Is there a disclaimer to this service?
Yes. Like all other services. Calls are given on a best efforts basis. Subscriber of this service acts upon the call at his own will and Growth Avenues will not be held responsible for any losses that may accrue to the subscriber from his trades.