Can i earn daily 500 Rs in Copper?

Hello members

i have 10000 Rs, for 5500Rs my broker is giving for one lot copper intraday limit.

i want to earn daily 500 Rs in copper.
Trading days = 20 days

Can i earn 20*500=10000Rs per month

Can i earn 100% return per month. my broker is charging just 25(buying)+25 (selling)= just 50 Rs only

My target is 55 paisa for one lot copper

for example if i buy at 400 , i will sell at 400.55, next day 500 rs will be credited to my account

after getting 10000 rs profit per month, i will increase my lot size

please help about possibility of this idea. and give which trading method to be used to earn such small income per day

Thanks,
babu

i am interested to know your replies.. please help me.. will it work?

i am waiting for your replies.. please help me

Dear Babu,
You r buying at 400 & selling at 400.55.
Lot size 1000.So u make Rs550 profit.
yr brokerage is 50paise plus other levies 55paise(approx).Total Rs1.05.
Result,u would end up in Loss:annoyed:

Bargain for 10-15paise(both buy & sell put together),15paise levies,Total say 30paise.You make rs250per lot(major).Mini(250lot size) also available.

Suggest that you go thro many threads on Copper/commodities in Traderji also to be more successful.

Good Luck

copper is liquid enough and gives good movement. 50 paise is not a big amount considering the daily range that copper witnesses.

the thing is - will you be right all the time? if yes, go for it.

RKGlobal at rs.9 per lot will work for you. BUT, RK does not provide such good margins. they are very risk averse.

no matter how your trading plan turns up, your other costs should remain low.

good luck.

he's mentioned rs.25 on buy side and rs.25 on sell side fixed. just like rs.9 per lot given by RK Global.

in that case, his idea works fine :thumb:

RKG charges Rs 9 a side. I don't find any margin related issues... I get 20-24 times leverage.. I don't want any more leverage. Traders shouldn't trade with more leverage. Even 20 times is too high I think.

But the important thing here is not margins or brokerage. Important thing is you will never make money on this strategy. Getting 55 paisa consistently on copper is no big deal. You will get it easily. But on the losing side how do you plan to book your loss ? Lets take 3-4 scenarios.

A. You will never book a loss. Market keeps moving up and down daily and you'll get your 55 paise ultimately. Lets assume 90% of the time this could also be true. But the 10% time you might not get 55 paisa and market moves against you. If it moves 10 points thats from 400 to 410.. you lose 10000. All capital lost. No more trades.

B. You keep a stop loss of 55 paisa. What do you will be the percentage of winning trades. Take a guess. In real life it will be less than 1/3rd. Even if you assume a statistical 50%, then also you will be in loss due to brokerage.

C. You keep a stop loss of 2 points. What percentage of the trades will you then need to get correct to just breakeven ? Take a guess. 78%. You will still make a loss on brokerage. Taking brokerage into account you will need to make above 80% right trades. You think you can do that ??

Do you have Sound Trading Plan ?

A sound trading plan consist atleast following thing

1. Trading system/method.... written in detailed ...what strategy you have for buying /selling....and experience

2. Money management....also called risk management.....are ready to handle losses....
if yes then how much...
3. review...backtest....mock test......have you done test on trading system you have .

4. ...keeping...emotion out trades/business..... most trader get trapped because of no preparation on this...

If you dont have sound trading plan....
Then you cant...

Its very easy to imagine.....50 paisa profit ....and calculating weekly and monthly gains...and imaging going life luxuriesly ..

practicality is way different.

Make a Plan...backed by experience study...then start.

Ranga, I have no idea no ideas of commodity, but I am surprised that one can trade it for 10k. How much leverage is offered in commodities ?? can you list down the commodities and the money required for 1 lot each (and the mini lots etc.)

How much could one trade with 10k in hand ??

Hello HPB

You have got very good feedback above, I don't have anything more to add to it. If you listen to the great advice given in above posts by sunny, piyush, comm and ranga then you should be able to make your Rs 500 per day.

Take a system practice trading with it, don't fix 50 or 55 as profit target, understand what the system can give and take it, be ready for the loss making trades and don't fret to give back a part of your earnings to the evil but necessary Stop Loss

Do not try to make your 500 from every trade, keep a target of 10,000 for all the trades you will take in a month, be ready for a draw down that your system typically will show up.

If you are using MT4, here is something you can use to start with.



I am using this super trend indicator to trail my stops on 15/30 minutes.

You can try to build a system around it. Do not blindly follow just one indicator, you have to work on it, trading is more about managing the trades and its more easy to trade with multiple lots than with just one lot.

And lastly don't trade copper regular lot with only 10000 as capital, its easy to get bigger draw downs even with a very good system.

In a short while I will post today's copper charts, with the indicator i have posted above you would have made your Months target today it self :thumb: