Common problem Uncommon solutions

I have a solid question
Answer me
Brain storming session.
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Today I heard

[B]SENSEX SHOT UP 900 POINTS, NIFTY SHOT UP 400 POINTS.[/B]

I have been trading today, this very same day.

my profit was 2500 rupees. I dont have a capital problem. I FEEL THIS IS A MINIMAL GAIN,nothing significant as compared to gain in sensex. negligible gain.

QUESTION
Which way should I trade and what should I trade to exploit this solid rise or fall of sensex etc including various stocks like L&T,REL,ETC?

What is to be done,in a systematic way?
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A)
To begin with my answer is here
1. Look for gainers WITH HIGH VOLUMES
2.LOOK for regular high range price movers, say L&T,REL,ABAN,RELIANCE etc and
3.enter early with stoploss

B)
My friend says
[B]Trade only NIFTY INDEX OPTIONS[/B]i ASKED HIM "WHICH strike price? call or put or something else? ANY simple guidelines?"

He come out vaguely [B]"It depends on situation."[/B]

C)
aNOTHER FRIEND SAYS
[B]TRADE ONLY NIFTY INDEX FUTURES[/B]

D) Another idea
[B]Go for stock futures with high volatility,high volumes.[/B]

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General
precaution zone

Trading needs,most importantly, [B]solid preparation[/B],at least the night before.
[B]It is not a 20 minute preparation, much much more.[/B]

A study and plan,visualizing where the leading stocks would move most likely, and a [B]counter perspective,preparatory approach to plan rescue in case it moves exactly opposite way.[/B]

[B]Proper identification of trend is must[/B].

[B]Confidence[/B] is top priority, based on [B]previous testing of strategies that are going to be deployed.[/B]

Weightage? my guess?
preparation=30% trend=25%, confidence=45%

[B]Anything else can help?[/B] [B]Apart from having enough capital,[/B]Tradestation 2000i, with its radar screen,preplanned alerts
Anything else?
[B]POSITION SIZING AND RISK CONTROL[/B]
[B]keep position sizing OPTIMAL,reasonable[/B],(SAY 5% OF TRADING CAPITAL)
[B]Try for good reward/risk ratio [/B]say 1.25, or 1.5 or much more,possible.
Try always for [B]Low risk entries,[/B]PREFERABLY [B]enter close to support zones so that in case of things getting worst,risk is minimal as you escape near support level[/B]

Make money in stocks surely,firmly,easilythis way.

Gentlemen,

you can make money in stocks surely,easily,firmly.

First Two conditions required are
1)patience,
2)preparation
patience=waiting for right time,
preparation to see which stocks are best suited to your approach

The next two are
3)superior stock selection and
4)maximum market dip conditions.

Superior stocks
are stocks with high quality earnings,products,market leadership,
must be in top 5 of the good sectors.

THE NEXT LAST TWO CONDITIONS ARE
5)Keep money ready,
6)keep list of stocks ready

WHEN TO BUY
When the index of your chosen stock market dips by 20%,or for indian markets 1500 points dip in sensex, just buy as per your list,but only with 5% of your total capital.

If dips again,buy again only if dip is more than 5%
Dont put more than 10% of your capital in any stock.
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that is all.half job is done.

Then wait till index goes up by 1000 points or stocks going up by 20% sell take your cash