With the American markets closing in the green, Asia seeming upbeat, we should expect gains in our market. The theme is to look for a rally, since momentum in the Indian markets supports the world moves. A bullish head and shoulder pattern confirmed on Friday gives an upside target of 4500 - 4510. We should see the Nifty trying to touch this number, maybe today.
There is a direct relationship between capital employed and gains. The less risk you have, the stronger your chances of making money. if you trade 50 Nifty (1 contract) on an investment of Rs 2 lakhs, your chances of making money are almost certain (almost, because there is no certainty). Start your trades with 50, then see if you need to add a position, in that case add another 50. Stop right here. Your maximum exposure is not to exceed 100 (2 contracts).