Crude oil is a human

[HEM]

Dear Vinoth,

Great job..........:clapping::thumb:
your all write up are excellent.........:clapping::clapping::thumb:


HEM

 

[Tamil trader]

Experience 18

Colorful trading method destroys colorful life

This is a small post only and for newbies only.

I have seen in many broker office, More newbies are watching green and blue color for bullish and red color for bearish and then give their entries.

If they hold the long position, whenever they see the red color in the terminal, they get more emotion.

If they hold the short position, whenever they see the blue or green color in the terminal, they get more emotion.

There is nothing in the color. They are showed just for the difference in Bid and Ask price. No need to be nervous.

Dear newbies,

Up and Down is the character of the market. if you are very nervous and emotional by seeing the color, just change the color and disable that function in your terminal.

This is not a good method for trading. Create the good strategy rather than being nervous for small price movement.

maybe, this post may not be interesting... but more newbies are using. and also used in my beginning life of the trading before 5 years. and made some losses. so this is one of my experince

So, Know that, Colorful Trading Method destroys your colorful life

 

[Tamil trader]

Experience 19

Learn the Mega and Implement the Mini

This is also for newbies.

Every new traders are searching, learning, testing any trading methods and strategies.

Before using the real money for the strategy, we should do paper trading.

After getting profit in paper trading, they are coming to market with real money. but they are doing the important mistake here.

In paper trading, they are trading with mini lots, but in real trading, they are trading with mega lots. If they get nervous with their strategy in the beginning stage of the real trading, they make huge losses due to Mega Lots.

So My kind opinion to newbies is,

Learn the mega lots in paper trading. because if there is any loss in paper trading, you will change and modify your trading method due to big loss in paper trading. but if you learn with mini lots in paper trading, you will not concentrate on strategy. So Always trading with Mega lots and More lot sizes in Paper Trading. Calculate the profit and loss.

If you satisfy with paper trading, come to the real trading. and trade with mini lots for some months until you are perfectly satisfy with your strategy. if you are not satisfied, you can immediately exit due to small losses in Mini Lots.

So, this is always better for newbies to follow, Learn with Mega Lots and Trade with Mini Lots.

I followed this method in the beginning life of the trading career. So it helped me to learn the market well in real trading with mini lots. As i am experienced now with my strategy, currently i increased my lot sizes heavily.....it works for me....this is one of the experiences from me.

 

[Tamil trader]

Experience 20

"Averaging a Losing position is like catching a falling knife"

Yes. Anyone cannot find the top of the day or bottom of the day.

When the market breaks low, newbies think that this price will be the day's low. So he decides to go long.

But, market still makes new low again. So he averages his position by thinking this new low is the day's low.

But Whole day market trades with downtrend. then, he blames the market or he blames his luck

Dont increase your lot size and dont average your losing position. This is totally opposite to the disciplined trading.

Averaging is a good concept. but newbies are using this concept wrongly.

I will tell you example.

I got a sell signal at 6300 , and my stop loss is 6450.

So , i sold one lot at 6300. but again market comes to 6400. This is a good opportunity for me to sell again. so i again sold at 6400.

But My Exit point for the two lots is 6450 only if there is contra trend.

If you follow the above method, there is no problem with averaging concept. Without knowing the trend and exit point, dont average your position

Crude is coming down from 7750 to 6200 within two months.

Think now, how can you average positionally? Exiting in the losing time at correct trend reversal point is always important for safe trading and protecting your capital


Without knowing trend, Dont average your losinng position and dont lose your capital

 

[harisundar86]

Welcome Back

 

[Tamil trader]

Experience 21

"Practice makes a man perfect- Indian Commodity Brokers are the main reason for the loss of our Indian Traders"

This is the important one for all the traders.

Our Indian Traders have lost their real money in trading. Do you know why?

Bur Foreign Traders have not lost their real money while comparing with Indian Traders.

Usually, In Foreign Exchanges, Traders are given the chance for trading in demo account with demo money. They learn all the things like using exposure, money management, applying various techniques, and they learn various lessons through demo software trading

But There is no demo account in MCX for our Indian Traders. We still do Paper Trading only for our practice. But Paper Trading is not comfortable for Indian Traders. They should trade with demo software. But our Indian Brokers are not giving any demo software for practice. So our Indian Traders lose their real money in real trading without any prior experience

Anyway, No Problem. I will tell you how to make profit in crude oil trading.
Manytimes, i told that , MCX Crude oil is totally dependant on Nymex Crude and USDINR. You can Practice both the product in foreign exchange with demo software. if you make profit in their software, you can do real trading in MCX. and you can also learn the movement of foreign market well.

I first gained my money in foreign exchange in the demo account. After constant profit with demo account, i started real trading in MCX. and making constant profit.

All newbies should follow this step. i will tell you where you can open this account.

For example.
there are lots of demo brokers. Better one is gcitrading dot com and download metatrader platform. they give 50000$ for demo account. you first make it double. then come to MCX trading. you will surely win in MCX.

See that report. They gave me 50000$. i made profit 3979$. Then, Why cannot make a profit in MCX?

Think Well, Do Demo trading for better practice. and then come to Real Trading in MCX. if you make loss in demo trading, Dont come to MCX Real trading. Dont lose your hard-earned money. Dont lose your life.

Comments Welcomed. This is my one of the best experience in my trading life. if you make profit without any practice, then this post is not for you.

 

[rkkarnani]

Thanks for starting the 50 points in Crude per month thread in Members section.
How much does this 250 points translate to in terms of Rupees? A very basic question as am not at all know abt the Lot sizes etc in Commodities.

 

[HEM]

Thanks for starting the 50 points in Crude per month thread in Members section.
How much does this 250 points translate to in terms of Rupees? A very basic question as am not at all know abt the Lot sizes etc in Commodities.

25000 Rs

 

[rkkarnani]

25000 Rs

So its a 100 units lot ! Any input about its clearing.
I visited MCX but was confused. The lot size is some 100 barrels.... clearing of all commodities seem to be different, then there are some "assignment" days...

In simple terms, If I take a position in Crude today, till when can I carry this months position? Will it expire on its own if I dont square it?
As in Equities are the Futures in commodities Cash settled?
I may be obstructing the flow here, in that case shall seek clarification in more proper Forum !

 

[Tamil trader]

So its a 100 units lot ! Any input about its clearing.
I visited MCX but was confused. The lot size is some 100 barrels.... clearing of all commodities seem to be different, then there are some "assignment" days...

In simple terms, If I take a position in Crude today, till when can I carry this months position? Will it expire on its own if I dont square it?
As in Equities are the Futures in commodities Cash settled?
I may be obstructing the flow here, in that case shall seek clarification in more proper Forum !

Sir,

Crude oil lot size is 100 barrels

for example... crude current price 6200. if you buy at 6200, and sell at 6201... profit is 100 rupees per point

250 point per month means, 25000 rupees per month.

This is future contract like nifty futures. every month 19th is the expiry date.

you can square off on 19th or within 19th of every month.

if there is no clarification, send me private message. i will give u detailed explanation