What really works in professional commodity trading? My Trading Strategies

Discussion in 'Commodities' started by Kabali, Jul 22, 2016.

  1. Kabali

    Kabali Member

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    Dear Friends,

    I am trading in MCX Market for the past 7 years. But I am new to Traderji.

    For the professional commodity traders,

    I have some trading plan and strategies to share with you.

    I will share one by one through my articles in the coming post
     
  2. Kabali

    Kabali Member

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    Priority No. 1 - Money

    We all know well that there are somany tools for the trading. But which one is the first priority for me?

    1. Fundamental Analysis - No
    2. Technical Analysis - No
    3. Watching Foregin Market - No
    4. Price Action Trading - No
    5. Amibroker, Meta Trader, Automated Trading Etc - No

    The above list goes without any limit..............

    Professional Traders go to market for earning money. But Scalpers, Intraday Traders and others are gambling the market by the above tools. Some tools work for sometime but not always...

    So, I am very cautious about money. My first priority is Money management. But you may ask, Is merely money management enough? I am not saying like that.


    Money should be given the first priority. I have more valid reasons how professional traders are safe in all types of market by their money management plan.

    Here, i will explain the money management plan for 1 Lakh rupees. Let me write my long experiences one by one.
     
  3. jassinko

    jassinko Well-Known Member

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    subscribing to thread........ :clap:
     
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  4. Purushotham

    Purushotham Well-Known Member

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    Interesting, Thanks.
    Subscribed...
     
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  5. srfelixmca

    srfelixmca Member

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    மகிழ்ச்சி

    Cheers
    :thumb:
     
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  6. Kabali

    Kabali Member

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    Priority No. 2 - Professionalism in Trading

    Generally, There are some technical rumours around the market friends.

    The rumours are :

    1. Trader With Stop Loss ( I never put stop loss) - Can you believe it?
    2. Dont average the losing position - But i average it. Can you believe it?
    3. Trade with trend ... But I dont see the trend - Can you believe it?

    Then, what is working in market? How to make the profit? Ya, I got the solution first. Later, I planned my trading.

    First of all , I assumed, If i am an offline commodity trader with physical quantity, How did i make the profit? I applied the same concept in online market. I gained reasonable money without any risk. Let me share some inputs.

    In offline physical trading, If you bought the product for 100, Will you sell it for 95? will you sell in Loss?

    If price comes to 80, What will you do? You should hold the 100 without selling and again should buy at 80. This is the basic trading plan done in the physical market. But why cant it be applied in online commodity market?

    The basic reason is money.

    Somone starts with 10000, 50000, 75000, 1 Lakh. One time investment only. Most of the indian traders are not able to invest money continously. So they trade with stop loss and fear.

    I say, It does not matter. You choose the product depending on the money in your account.

    Simply said, I am maintaining Professionalism in Trading by comparing every trade like physical commodity business. That is why i am able to exist in this market for the long periods.

    Somebody may not agree with above points, Everyone has different trading plan. But, I share here what works in this market for me.

    Let me share other points one by one.
     

  7. goldenedge

    goldenedge Active Member

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    I don't agree at all. Trading with stop loss is important since it forces you to put your emotions out of the game (even if you mess up and get emotional).


    Buying when it's falling is a bad strategy. Really bad. :annoyed:

    What? I felt like throwing up after reading the above sentences. The moment a trader uses phrases like 'without any risk' is when you have to realize that he is not a good trader. :mad:
     
  8. Smart_trade

    Smart_trade Moderator

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    Many new traders are following this thread. So I hope some practical workable ideas and plans are shared here.

    Smart_trade
     
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  9. anuragmunjal

    anuragmunjal Well-Known Member

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    kabali sir,

    refer to the highlighted part in red.. let us take the case of physical mkt.. assuming someone was a shopkeeper or a trader and he buys a product at 100 and cannot sell it off even at hundred.. the price comes to 80 ..as per you , he will buy at 80 again.. why would he do so? he is already stocked up on the same product and is not able to sell.. why would he want to increase the stock of the same product? even if he is expecting the price to go up from 80, his first effort would be to clear the previous stock , get into cash and then probably think of buying the second lot.. or am I missing something?

    regards
     
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  10. suri112000

    suri112000 Well-Known Member

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    Correct. The case is more so in case of perishable goods.

    Unless physical quantity trader plans ahead, to pile up stock as the price moves down, there is no way for him to go out of cash and hold the stock which is making the loss and jeopardize his trading. Whether in loss or profit, the physical quantity trader keeps himself busy in exchanging the goods for market price to keep his business rolling and to generate cash.

    It is not correct to say that physical quantity trader does not incur losses inspite of his holding capacity. As some pointed out, crude dropped from $100 to lows of $25. What about the stock bought at $100, $ 95, $90, $85 range. If the crude does not come to those levels, does not he do business?
     
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