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]