Dont Believe What I Say: My Trading Rules & Style

[iGuru]

hi iGURU,I want to know about crude n copper specially.which stragety i should follow for these commodities. I mean how i calculate target ,stoploss ,entry n exit point. If u have some gud stragety then please share.i m basically in job .that's why i used to trade after 7 pm to till 11.30pm.whether i follow daily trade or 1 or 2 day holding stragety.

Hi

To calculate the target, stop loss and for entry & exit level or points, I will suggest you to get acquainted with Fibonacci retracement and extension & different types of Pivot point levels. (I hope being a trader you must have idea about all these)

I will suggest you to follow both the way of trading because the combination of these two way of trading will help you to grow your asset very well........... So if you totally rely on technical then always go for intraday trading as it will be very helpful. And for swing trading, apart from technical analysis you need to have some grip on fundamental studies & news because as per me in the market only one factor can make technical studies wrong is the Fundamental factors only.

Being a Technical Trader, I take my decision for intraday trade on the basis of the combined analysis of technical studies + Candle stick patterns + support & resistance level on the basis of Fibonacci analysis. I follow selected indicator for my Intraday trading. Currently there are more than 280 types of technical indicators in the market and it will be very difficult to learn & track all of these indicators. So I will suggest you to learn few of them which will make you comfortable to use it. Currently Im using Directional Movement, MACD, RSI, Price Oscillator& Stochastic. Apart from this Candle stick patterns also help a lot in decision making specially if it is at support or resistance level.

The important part is that I follow my risk management very strictly.

As I already mention that I Use Spread strategy for trading. For intraday trading I use this strategy on Silver and for swing I use it on Crude Oil, Lead, Zinc & Aluminium & Gold.

You mentioned that you only trade during evening session only. So as a friend I will suggest you to go for spread trading it will be very helpful for the trader like you.

Read the below article (Link) which will give you a basic idea for Spread trading.

" Spread Trading - A Simple Trading Strategy for Maximizing Your Profits "

http://www.traderji.com/commodities...trading-strategy-maximizing-your-profits.html


Regards,

iGuru

 

[mehtaka]

hello sir..
Nice explanation, and it has motivated me to get into a wealthy man...rather than a rich man.
Can you explain , what if you incurred loss on some day, what your risk for the day (as you said Rs. 2000 is you daily profit tgt).

I want to strt trading in commo...
the brokerage u said looks very good....i.e 0.01%
can i get the same brokerage...with your firm?

 

[iGuru]

hello sir..
Nice explanation, and it has motivated me to get into a wealthy man...rather than a rich man.
Can you explain , what if you incurred loss on some day, what your risk for the day (as you said Rs. 2000 is you daily profit tgt).

I want to strt trading in commo...
the brokerage u said looks very good....i.e 0.01%
can i get the same brokerage...with your firm?

Hi,

Thanxs for your comment.

My daily Risk is of Rs. 2,000 for intraday and for Swing my risk varies from commodity to commodity (5,000 - 10,000). To get 1 paisa (i.e. 0.01%) brokerage with any firm you need to have an daily commitment of Rs. 2-5 crores of Turnover.

I don't know whether any brokerage house can give you 0.01% brokerage initially (as you mentioned above that you want to start trading in commodity), but what I can suggest you that for learning you can start with 2-3 paisa brokerage with any Broker & then reduce it to 1 paisa or you can open an account with RK Global or with any cheapest brokerage provider in India whom you can trust.

In my case I have 1 paisa brokerage because I'm the Sub broker and being a Sub Broker my Turnover is more than 7 Cr. per day.............. which helps me & my clients to have the brokerage advantage as compare to any other Traders.


Regards,

iGuru

 

[dr_udaya]

halo guruji....

your approach and core concentration on limited commodites tempting me to enter commodities futures...

presently i am working in soya processing plant in saudi arabia, daily monitoring the three soya futures(soybeans, soya meal and soybean oil) listed in CBOT.

your approach in commodity futures boosting me to have exposure in commodities (in addition to my present exposure in f&o of indian stock market ), which I feel ideal for my coming retired life(presently 54 running), to make myself fully occupied.

Many thanks for sharing your experiences...

Good luck & God Bless You...

uday

 

[Tradejack]

Hi

To calculate the target, stop loss and for entry & exit level or points, I will suggest you to get acquainted with Fibonacci retracement and extension & different types of Pivot point levels. (I hope being a trader you must have idea about all these)

I will suggest you to follow both the way of trading because the combination of these two way of trading will help you to grow your asset very well........... So if you totally rely on technical then always go for intraday trading as it will be very helpful. And for swing trading, apart from technical analysis you need to have some grip on fundamental studies & news because as per me in the market only one factor can make technical studies wrong is the Fundamental factors only.

Being a Technical Trader, I take my decision for intraday trade on the basis of the combined analysis of technical studies + Candle stick patterns + support & resistance level on the basis of Fibonacci analysis. I follow selected indicator for my Intraday trading. Currently there are more than 280 types of technical indicators in the market and it will be very difficult to learn & track all of these indicators. So I will suggest you to learn few of them which will make you comfortable to use it. Currently Im using Directional Movement, MACD, RSI, Price Oscillator& Stochastic. Apart from this Candle stick patterns also help a lot in decision making specially if it is at support or resistance level.

The important part is that I follow my risk management very strictly.

As I already mention that I Use Spread strategy for trading. For intraday trading I use this strategy on Silver and for swing I use it on Crude Oil, Lead, Zinc & Aluminium & Gold.

You mentioned that you only trade during evening session only. So as a friend I will suggest you to go for spread trading it will be very helpful for the trader like you.

Read the below article (Link) which will give you a basic idea for Spread trading.

" Spread Trading - A Simple Trading Strategy for Maximizing Your Profits "

http://www.traderji.com/commodities...trading-strategy-maximizing-your-profits.html


Regards,

iGuru

hi iGuru,thanks 4 ur reply.i want to ask u that u have discussed about various technical indicator.fibonacci,MACD,etc.can u please tell where i can find these indicators charts. I m using odin diet with karvy comtrade.

 

[mehtaka]

Hi,

Thanxs for your comment.

My daily Risk is of Rs. 2,000 for intraday and for Swing my risk varies from commodity to commodity (5,000 - 10,000). To get 1 paisa (i.e. 0.01%) brokerage with any firm you need to have an daily commitment of Rs. 2-5 crores of Turnover.

I don't know whether any brokerage house can give you 0.01% brokerage initially (as you mentioned above that you want to start trading in commodity), but what I can suggest you that for learning you can start with 2-3 paisa brokerage with any Broker & then reduce it to 1 paisa or you can open an account with RK Global or with any cheapest brokerage provider in India whom you can trust.

In my case I have 1 paisa brokerage because I'm the Sub broker and being a Sub Broker my Turnover is more than 7 Cr. per day.............. which helps me & my clients to have the brokerage advantage as compare to any other Traders.


Regards,

iGuru

thank you iguru for the prompt reply....
Is RK Global a good broker?..i have wrote my query in one of the post...
though they charge 9 rs per lot...but has some condition ..which says
"Allow clients for trading on selective commodity."....dont know what this means.

Btwn which technical software use?...or its just screen trading?
how u analysis the mkts?

 

[iGuru]

hi iGuru,thanks 4 ur reply.i want to ask u that u have discussed about various technical indicator.fibonacci,MACD,etc.can u please tell where i can find these indicators charts. I m using odin diet with karvy comtrade.

Hi,

With every chart you will find all these indicators as these are the basic indicators available with all the technical charts. Currently I don't have any live chart for Indian Commodities like: Metastock, esignal etc. But I'm using the demo iternational charts as of now like gci demo account, futurespros etc.

Apart from this, I have an account with Sharekhan where I get Indian charts with last 5 days of historical data for technical studies. With the combination of these two charts, I take my decision for trading intraday.



Regards,

iGuru

 

[iGuru]

thank you iguru for the prompt reply....
Is RK Global a good broker?..i have wrote my query in one of the post...
though they charge 9 rs per lot...but has some condition ..which says
"Allow clients for trading on selective commodity."....dont know what this means.

Btwn which technical software use?...or its just screen trading?
how u analysis the mkts?

Hi,

As of now I can say that RK Global is a good broker.

"Allow clients for trading on selective commodity.".... this condition is applicable with all the brokers in India. And what I think the reason behind this condition is that, sometimes Exchange make some restriction on some commodity to trade in the market for retail clients and another reason is that a client may not have the required margin for trading like if you have a margin of Rs. 50,000, and you want to trade in Gold which requirres a margin of Rs. 80,000, then you can't trade in Gold with RK Global untill you have the said required margin in your account. But few brokers in the market allow their clients to trade in Gold with that available margin of Rs. 50,000 or less.

If you still have the doubt then you can ask your query/doubt to them....... they will better explain it to you, the reason behind that condition.

About technical charts, I just explained in my previous above post. I study lots of thing while making my decision for trading and it will be very difficult for me to explain here also.



Regards,

iGuru

 

[vijayakishorebabu]

Nice articles IGuru,

please continue

 

[sajevan]

Hello Guruji,

As a beginer and learner, can I start my trading with Rs. 10,000/- and make a profit of 500/- per day. I am totally new and I value your advice,

Best regards, Sajevan