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

[myamit]

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I know that I'm presuming but it seems safe to presume that next trading day will anyway be lower volume than Friday (considering extraordinary volume on Friday).

 

[uttamkamlesh]

That's debatable, specially in these times when the trading cost may sometimes be less than one tick. Check out the "Most Actively Traded Scrips" on nseindia.com and observe their price movements.

Yes TP...that may be debatable....

For a full time trader....trading as business..... will include all the bucks he has to spend on...

brokerage
govt. taxes on trades
slippage
internet + books
computer+printer+their maintenance
annual account maintenance charges...
furniture (i mean one specially designedchair)
annual taxes on income...etc....

many more entries of the balance sheet i cannot collect now...

 

[timepass]

Yes TP...that may be debatable....

For a full time trader....trading as business..... will include all the bucks he has to spend on...

brokerage
govt. taxes on trades
slippage
internet + books
computer+printer+their maintenance
annual account maintenance charges...
furniture (i mean one specially designedchair)
annual taxes on income...etc....

many more entries of the balance sheet i cannot collect now...

Granted about the direct and indirect expenses associated with trading. But my point is, jobbing is a trading technique, also associated with high frequency trades. As I said, consider a scenario where your direct trading cost is 2 paisa... won't it be worthwhile to trade for one tick i.e. 5 paisa ??. With sufficient volumes, even 4-5 such trades in a session can give decent returns.

Combined with longer term trades, the whole thing can be really profitable.

 

[uttamkamlesh]

Granted about the direct and indirect expenses associated with trading. But my point is, jobbing is a trading technique, also associated with high frequency trades. As I said, consider a scenario where your direct trading cost is 2 paisa... won't it be worthwhile to trade for one tick i.e. 5 paisa ??. With sufficient volumes, even 4-5 such trades in a session can give decent returns.

Combined with longer term trades, the whole thing can be really profitable.

Yes, TP you are right.......but are there such opportunities available....basically i do not know any and of course have not tasted the blood....

plz let me know of few such stocks....anyways m surprised...if market makers/brokers would leave that space for us...

 

[timepass]

Yes, TP you are right.......but are there such opportunities available....basically i do not know any and of course have not tasted the blood....

plz let me know of few such stocks....anyways m surprised...if market makers/brokers would leave that space for us...

........

Look for "Most Actively Traded Scrips" on nseindia.com during trading hours. Select scrips priced between 15-50 Rs. A volume of 5000-10000 isn't a big deal here. So one or two trades of 5-10 paisa and it pays the day's expenses. While the longer term trades provide jam and cream, these scratch trades can provide bread and butter and office expenses.

 

[uttamkamlesh]

........

Look for "Most Actively Traded Scrips" on nseindia.com during trading hours. Select scrips priced between 15-50 Rs. A volume of 5000-10000 isn't a big deal here. So one or two trades of 5-10 paisa and it pays the day's expenses. While the longer term trades provide jam and cream, these scratch trades can provide bread and butter and office expenses.

ya...u r correct...one day Ashok leyland (@25 around) opened with Open=Low...so bought some 3000...and exited with 30 paisa....

 

[myamit]

........

Look for "Most Actively Traded Scrips" on nseindia.com during trading hours. Select scrips priced between 15-50 Rs. A volume of 5000-10000 isn't a big deal here. So one or two trades of 5-10 paisa and it pays the day's expenses. While the longer term trades provide jam and cream, these scratch trades can provide bread and butter and office expenses.

Guys,

We are missing one important fact here and that is defying probability and that too in longer run. To make money with costs (even close to zero) against you, one needs to be correct more than 60% (atleast). And to my understanding even a highly successful trader can achieve 30 to 40% success ratio in a longer run.

This sounds good for starters and few can practise this for few months/years but I've not seen any trader (and believe me I've seen thousands of them) making money with this.

Yes, this can be good for shorter term when market trend is predicatable and you make some good bets to start. But to build wealth and that too without
too much of stress... only one thing works and that is cut your losses early and let your profit run.

Regards,

 

[calmeshenoy]

wher v can get abv calculator

 

[tomjerry]

wher v can get abv calculator

Hi calmeshenoy,

here it is: http://www.zerodha.com/main/calculator/calcs.html

 

[ethan hunt]

Stamp Duty is charged at 0.01% or Rs. 50 per contract note - whichever is lower.
*Stamp duty is charged according to the Karnataka Stamp Duty Act and is not included in the brokerage calculator.
Zerodha should include stamp duty in the calculator for faster decision making.