How to trade Commodities - Gold, Silver, Crude Oil, Natural Gas

Easier to Trade - Commodities or Indexes or Stocks

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adityasaraf007

adityasaraf007

Well-Known Member
#2,521
#2,521
KID_of_MARKET said:
Sir, Wt is DS2 and MS1 ?
Click to expand...
Hi Kid.... It must be Daily Support 2 (DS2) and Monthly Support 1 (MS1).... The Pivot levels.... There are different types of Pivot Levels like Classical Pivots, Fibonacci Pivots, Camarilla Pivots, etc... Even SG Sir had created his own set of Pivots by the name of Quadra.... Paul Sir uses his own set of Proprietary Pivot Levels.... :)
 
uttamkamlesh

uttamkamlesh

Banned
#2,522
#2,522
For anyone who can practice one trade a day and 5 trades a week (at max)....here is one idea...

Show on your charts:

(a) All important trendlines (BRLs & BSLs) from all Time frames
(b) Classic Pivot points, Daily, Weekly, Monthly
(c) Important immediate Swing High/ Low levels

Update your charts on free time, i do it on Saturday/Sunday....During the trading days you would find sufficient instances of concurrence of supports and resistances....

1. Now...let the market come to those levels...
2. Let a candle signal should form there....
3. Then you should wait for the stochastics to take a clear turn...

4. Now enter with two units and put stop loss order below/above this support/resistance zone now...
5. Book profit on one unit to reach to breakeven on trade, keep one unit for the long term profits by revising stop loss levels at swing highs/lows thus formed.

 
C

coolcorner78

Active Member
#2,524
#2,524
I did post this on another thread, but got no replies, not sure why or MM is not so important. Anyways.

Kamleshji, as you are following options closely these days can you please give your thoughts on this and let me know. (BTW, I suck at MM :( trying to get things right).

What kind of money management do you use while trading in options. The reason am asking is you cant use the popular 2% rule with options. As the options tend to jump up and down more than 2% from close to next day open. It would be great if you guys could tell what kind of money management or Stop losses you would use.

To make it simple lets take the case of NIFTY OPTIONS with 10L trading account.

1. How do you determine number of lots to trade (again there are two cases here)?
a) When you are writing options.
b) When you are buying options.

2. How do you determine your SL for intraday options trading. What % or any other formula?

3. How do you determine your SL for positional options trading. what % or any other method? Again here I would like to ask for both cases.
a) When you are writing options.
b) When you are buying options.

4. Do you move your SL (trail SL) as soon as you are in profits. What % or method? For intraday.

5. Do you move your SL (trail SL) as soon as you are in profits. What % or method? For positional options trading.
a) When you write options.
b) When you buy options.

Also, please add anything important I've missed out. If you want to discuss on taking profits, would be good too.

Cheers!
 
uttamkamlesh

uttamkamlesh

Banned
#2,525
#2,525
coolcorner78 said:
I did post this on another thread, but got no replies, not sure why or MM is not so important. Anyways.

Kamleshji, as you are following options closely these days can you please give your thoughts on this and let me know. (BTW, I suck at MM :( trying to get things right).

What kind of money management do you use while trading in options. The reason am asking is you cant use the popular 2% rule with options. As the options tend to jump up and down more than 2% from close to next day open. It would be great if you guys could tell what kind of money management or Stop losses you would use.

To make it simple lets take the case of NIFTY OPTIONS with 10L trading account.

1. How do you determine number of lots to trade (again there are two cases here)?
a) When you are writing options.
b) When you are buying options.

2. How do you determine your SL for intraday options trading. What % or any other formula?

3. How do you determine your SL for positional options trading. what % or any other method? Again here I would like to ask for both cases.
a) When you are writing options.
b) When you are buying options.

4. Do you move your SL (trail SL) as soon as you are in profits. What % or method? For intraday.

5. Do you move your SL (trail SL) as soon as you are in profits. What % or method? For positional options trading.
a) When you write options.
b) When you buy options.

Also, please add anything important I've missed out. If you want to discuss on taking profits, would be good too.

Cheers!
Click to expand...
Hi dear..MM is not only important but also improves your trading results big time...well....i have not traded stock options more than once and for Index options also i use them for leverage....or for eating premium ...or for hedge...

Anyways i would suggest you to make money without naked option trading...you may concentrate more on commodities...

For option related queries you must read following books...
1. Profit With Options - Essential Methods For Investing Success - Lawrence McMillan
2. Get Rich with Options 2ed - Lee Lowell

Both are very good, i have read both of them...
 
Last edited:
C

coolcorner78

Active Member
#2,526
#2,526
uttamkamlesh said:
Hi dear..MM is not only important but also improves your trading results big time...well....i have not traded stock options more than once and for Index options also i use them for leverage....or for eating premium ...or for hedge...

Anyways i would suggest you to make money without naked option trading...you may concentrate more on commodities...

For option related queries you must read following books...
1. Profit With Options - Essential Methods For Investing Success - Lawrence McMillan
2. Get Rich with Options 2ed - Lee Lowell

Both are very good, i have read both of them...
Click to expand...
I seldom trade in stock options too. Its just like last couple of days to expiry or if the stock runs up too much and I feel its getting tired and see that its going to be in a range, then only I enter stock options or used it as a hedge against my stock futures, else its just that I have NIFTY options only most (90%) of the times.

I totally agree with MM, it improves trading results, that's why those questions.

Ok, let me elaborate, I get decent idea about the ranges for the month, but I jump too soon into a position, only good thing is I don't jump in 100%, I build up positions slowly, as over time there is decay in premium, so I tend to build it up slowly (but, at the same time you cant wait it to get to the range coz of theta, premiums will decay), but by the time NIFTY gets to the range extremes the premiums are quite high, I do average it out as the initial positions are very less. Sometimes I do cover and enter at ranges, but coming to that covering part is what I asked part of the MM. I did lot of searching on this, options MM, but couldn't find any. Otherwise also, would like to understand how is it good to apply MM when it comes to options.
 
A

ayushleo89

New Member
#2,530
#2,530
Where can i access these candlestick charts with historic information on which i can draw and put indicators. i work in Mcx aluminium, zinc , lead, nickle and copper. ur guidance would be really helpfull.
 
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