loss in positional trading

V

vasukiakka

New Member
#1
#1
Dear friends:
I am new comer to commodity trading As per my broker advice I started initially position hedging method in Leadmini.buy in one contract and sell in another contract .In sell contract I earned Rs 12000/=. In buy contract I bought lead mini each one lot at 132, 128,124,120,116 and I closed four higher levels at 113 level with the loss of rs 48000/= Now I have may 13 leadmini at 116. .I want to overcome the loss make it into profit. I have two options as the following. 1.average at lower level or 2. Sell 116 level with minimum loss when the mkt moves upward. Now mkt price is approximately at 109.now I have only 31000/= in my account
I dont know the exact trend. Kindly advice me to what to do .


confused::confused:
 
A

ashu1234

Well-Known Member
#2
#2
vasukiakka said:
Dear friends:
I am new comer to commodity trading As per my broker advice I started initially position hedging method in Leadmini.buy in one contract and sell in another contract .In sell contract I earned Rs 12000/=. In buy contract I bought lead mini each one lot at 132, 128,124,120,116 and I closed four higher levels at 113 level with the loss of rs 48000/= Now I have may 13 leadmini at 116. .I want to overcome the loss make it into profit. I have two options as the following. 1.average at lower level or 2. Sell 116 level with minimum loss when the mkt moves upward. Now mkt price is approximately at 109.now I have only 31000/= in my account
I dont know the exact trend. Kindly advice me to what to do .


confused::confused:
Click to expand...
Hi,
Lead is a typical commodity and it can give very large moves once it get caught up in a trend. As per me you need to do a lot of churning in both direction, a bit hectic one as it requires intraday trading. If you want to trade positionally, i would suggest you to have only short position as copper and other base metals have bearish outlook internationally. If you are not comfortable in selling, do one thing sell equal quantity in next months contract in lead mini, by doing this you will be insulated to the downside risk. Expected downside is 105 for short term. Keep in touch, if things change I'll inform.
Regards,
 
V

vasukiakka

New Member
#3
#3
hi ashu1234

Thank u for ur concern.

But i have short position in june contract. but cancelled the same since my broker adviced me to avoid hedging since any time trend may change to buy position and buy another lot at low value.
:confused:
 
A

ashu1234

Well-Known Member
#4
#4
vasukiakka said:
hi ashu1234

Thank u for ur concern.

But i have short position in june contract. but cancelled the same since my broker adviced me to avoid hedging since any time trend may change to buy position and buy another lot at low value.
:confused:
Click to expand...
Can't believe it that your broker made you trade in such a far month future, then I guess if you have sold in June, then you may have bought in May. If you are hedging in such a far month futures, I'm sure you are bound to pay spread difference everytime you trade, also these futures are not very liquid, so you might not get best price while trading in them.
 
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A

ashu1234

Well-Known Member
#5
#5
As you have said you are new to commodities, my advice - brokers everywhere are the same, they are not going to pay if market slips another 4-5 rs from here, but yes, they'll surely tell you when the market turns in their favour that they had advised you to hold. Just take informed decisions is what I can tell. Right now what I can tell about the trend is that its bearish, sell on rallies is what market is doing. Plus your account balance is too low to hold such a position, lessen your position and trade is what I can say.
 
DSM

DSM

Well-Known Member
#6
#6
Save balance of your capital and stop taking advise from your broker. You may or not make money, your broker will definitely will. Sooner you realise this, better for you.

vasukiakka said:
Dear friends:
I am new comer to commodity trading As per my broker advice I started initially position hedging method in Leadmini.buy in one contract and sell in another contract .In sell contract I earned Rs 12000/=. In buy contract I bought lead mini each one lot at 132, 128,124,120,116 and I closed four higher levels at 113 level with the loss of rs 48000/= Now I have may 13 leadmini at 116. .I want to overcome the loss make it into profit. I have two options as the following. 1.average at lower level or 2. Sell 116 level with minimum loss when the mkt moves upward. Now mkt price is approximately at 109.now I have only 31000/= in my account
I dont know the exact trend. Kindly advice me to what to do .


confused::confused:
Click to expand...
 
A

ashu1234

Well-Known Member
#7
#7
Hi,
Uploading lead's chart just to tell you that further weakness has started as it has breached 105. A little bounce back can be expected but still trend is seriously down. Hope you must be out of your buying position.
 
R

rangarajan

Well-Known Member
#9
#9
vasukiakka said:
Dear friends:
I am new comer to commodity trading As per my broker advice I started initially position hedging method in Leadmini.buy in one contract and sell in another contract .In sell contract I earned Rs 12000/=. In buy contract I bought lead mini each one lot at 132, 128,124,120,116 and I closed four higher levels at 113 level with the loss of rs 48000/= Now I have may 13 leadmini at 116. .I want to overcome the loss make it into profit. I have two options as the following. 1.average at lower level or 2. Sell 116 level with minimum loss when the mkt moves upward. Now mkt price is approximately at 109.now I have only 31000/= in my account
I don’t know the exact trend. Kindly advice me to what to do .

confused::confused:
Click to expand...
Vasukiakka,

I dont trade commodity.:)

But i blindly follow Quadra of SG for Positional in Stocks.

Out of curiosity,i use to apply it to Commodity charts & found the results are same .

So,why dont u learn Quadra & follow it & become an expert on yr own.:thumb:

If yr broker is so intelligent to advise u,why is he working ?

Invest in a software like any other business.
When u r new,dont over trade.
Learn the basics in stocks where the investment could be very small & then switch to comm future.

Coming back to Lead,it was a Short on 28/2 < 122.9 with initial s/l 132.7.
trail the s/l as per Quadrastrategy.
It went down to 104.4 till now w/o breaching any TSL.:clap:

Chart attached.
Best of Lucks.
 
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A

ashu1234

Well-Known Member
#10
#10
Posting lead chart, yes friday's move was a bit too much for a day, i guess 112 on the upside will be maximum and it will turn bullish only if sustains 115. right now no trades.
 
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