Spread Trading
- Thread starter amardeep singh
- Start date
I am not sure about gold and silver , sorry.
IGURU's thread shows spreads of -4 to +4, but when I got in the Lead prices were very high at ~130 because of the Japan disaster.
From what I have seen over 4 months , the Lead Zinc Spread is varying between 6 and 16. Right now its at around 15 for the last few days, so I am expecting the spread gap to start reducing, Sell Lead Buy Zinc. 16 seems to be a resistance level.
If it crosses 16 , I am not sure what the next level could be, but I may Buy Lead Sell Zinc, but with stricter monitoring.
IGURU's thread shows spreads of -4 to +4, but when I got in the Lead prices were very high at ~130 because of the Japan disaster.
From what I have seen over 4 months , the Lead Zinc Spread is varying between 6 and 16. Right now its at around 15 for the last few days, so I am expecting the spread gap to start reducing, Sell Lead Buy Zinc. 16 seems to be a resistance level.
If it crosses 16 , I am not sure what the next level could be, but I may Buy Lead Sell Zinc, but with stricter monitoring.
Hello,
I just read your msg "What kind of spreads are you interested in?
I am following IGURU's spread trading methods for the last 4 months for the Lead Zinc spread. Very consistent and easy to work if you have a basic understanding of TA.". In this I didnt understand whats meaning of "TA" Can you Please explain meaning of "TA". I wait for your reply.
I just read your msg "What kind of spreads are you interested in?
I am following IGURU's spread trading methods for the last 4 months for the Lead Zinc spread. Very consistent and easy to work if you have a basic understanding of TA.". In this I didnt understand whats meaning of "TA" Can you Please explain meaning of "TA". I wait for your reply.
Hello Again,
Also want to know from you that as you working on IGURU method since 4 months and as you said its VERY CONSISTENT .....so does it mean you are able to Trade as per Method and get PROFITs very consistently ?? Pls throw light on it so I can also start following this Method !!
Rgds...MITESH.
Also want to know from you that as you working on IGURU method since 4 months and as you said its VERY CONSISTENT .....so does it mean you are able to Trade as per Method and get PROFITs very consistently ?? Pls throw light on it so I can also start following this Method !!
Rgds...MITESH.
Hi Mithesh,
Sorry for the late reply. TA is technical analysis. Actually I am following mainly the price movements of the spread difference to see where the supports and resistances are.
My method is very simple.
1. Follow the price movement on a daily basis based on EOD quotes.
2. If the spread gap changes two days in the same direction, enter my trade. If at the end of day 2, the spread gap is moving in the same direction, I will enter my trade in the last hour of trading.
3. Keep a stop loss of Rs 2 for the spread gap based on EOD prices.
4. If you go into a profit, keep a trailing stop loss of Rs 2.
5. If the trade moves against you position for two days, exit the trade.
You can reverse your position at this point but I wait for one more day to be cautious.
The movement of two days in a row is my key indicator.
My last trade - 26/05/2011
Sold Lead - 113.95
Bought Zinc - 102.7
Spread Gap 11.2 Expecting it to reduce.
It did not move much until today where I think it has dropped to around 9. I can't get the exact value as the MCX website is updating now.
The spread trade is probably the most boring trade I have seen, like watching paint dry. But it works
Hope this helps.
p.s I didn't look at the EOD data for all the days last week as I was sick with viral fever. The spread gap may have gone against my position for more than two days in a row but I didn't close. It could have been a costly mistake but it wasn't and I was too sick to care anyway.
Sorry for the late reply. TA is technical analysis. Actually I am following mainly the price movements of the spread difference to see where the supports and resistances are.
My method is very simple.
1. Follow the price movement on a daily basis based on EOD quotes.
2. If the spread gap changes two days in the same direction, enter my trade. If at the end of day 2, the spread gap is moving in the same direction, I will enter my trade in the last hour of trading.
3. Keep a stop loss of Rs 2 for the spread gap based on EOD prices.
4. If you go into a profit, keep a trailing stop loss of Rs 2.
5. If the trade moves against you position for two days, exit the trade.
You can reverse your position at this point but I wait for one more day to be cautious.
The movement of two days in a row is my key indicator.
My last trade - 26/05/2011
Sold Lead - 113.95
Bought Zinc - 102.7
Spread Gap 11.2 Expecting it to reduce.
It did not move much until today where I think it has dropped to around 9. I can't get the exact value as the MCX website is updating now.
The spread trade is probably the most boring trade I have seen, like watching paint dry. But it works
Hope this helps.
p.s I didn't look at the EOD data for all the days last week as I was sick with viral fever. The spread gap may have gone against my position for more than two days in a row but I didn't close. It could have been a costly mistake but it wasn't and I was too sick to care anyway.
Last edited: