Dont Believe What I Say: My Trading Rules & Style

[iGuru]

Hello Guruji,

As a beginer and learner, can I start my trading with Rs. 10,000/- and make a profit of 500/- per day. I am totally new and I value your advice,

Best regards, Sajevan

Hi Sanjivan,

I don't know about Equity whether it is possible or not (without taking the exposure for trading), but in commodity futures it is possible. And it will require dedication from your side to trade in such a manner.

With Rs. 10,000 you can trade in Lead Mini & Zinc Mini (Margin = Rs. 6,000 approx. & with every tick you can earn/loss Rs.50), Gold Mini (Margin = Rs. 8,000 approx. & with every tick you can earn/loss Rs.10) & Silver Mini (Margin = Rs. 9,000 approx. & with every tick you can earn/loss Rs.5). So in these commodities you can trade intraday for 2-5 times.............. which will help in achieving your daily target of Rs. 500

But what surpises me that you want to earn Rs. 500 per day on an investment of Rs. 10,000 which comes to a return of 5% per day and 100% per month. As per me, it will be not a practicle way to grow your investment. What I will suggest you that being a beginer, first try to achieve (also make it consistant) Rs. 100 per day on your said investment and once you will have the confidence in yourself, then you can increase your daily target step by step but in a logical way.

I don't want to discourage you, but what I think is that it will be a healthy way of learing & doing trading.



Regards,

iGuru

 

[subratdas]

Dear I guru,
Pls let me know what is the brokerage generally charged and which is the best broker for this type of trading?

Thanx

 

[tnandkumar]

hi iGuru,thanks 4 ur reply.i want to ask u that u have discussed about various technical indicator.fibonacci,MACD,etc.can u please tell where i can find these indicators charts. I m using odin diet with karvy comtrade.

hi iguru,i have gone through ur complete post.thank u very much fr tahing time to share ur experience.to give my personal information i lost very big amount in nifty future from tht day i am not trading ,i am just learning and gone through technical analysis course.i hope i have gaine good knowledge i technicals(i use GCI,Fxcentral etc...).but still not geting confidence to enter into market.i being a goverment employ,i can trade only evening from 0530 pm till mrg.so i started to learn about commodities and like to trade on them.sir i am using ODIN can u please suggest how to trade with tick charts(i am very much intrested in tichnicals),for analysis i am using 15 min,pivots points and candlesticks reversals in GCI demo software.but by doing this i hope i cant keep the risk minimum as per ur guidlines.are there any intraday tick chart patterns for trading .And now discussing about ur guidence given to one of our friend to do spread trading(as he also comfortable in trading during evening time).sir how to select the script for this spread trading,is it that we have to see the difference between the contracts or any other parameters.

 

[iGuru]

Dear I guru,
Pls let me know what is the brokerage generally charged and which is the best broker for this type of trading?

Thanx

Hi Subrat,

The brokerage charged by the various brokers in Commodity market is from 0.01% to 0.05%. But now a day’s you can easily get a brokerage of 0.02% - 0.03% due to huge competition among the brokers. Even you can get much lower brokerage like Rs.9 per lot with RK Global (Cheapest Brokerage offered in the market known to me as of now). If you are new to commodity market, then I will suggest you to go with Angel Broking, Mangal Keshav, Sharekhan, Motilal Oswal or with any reputed broker in the market (they will charge between 0.03%-0.05%, negotiable). Once you will have some grip on Commodity trading, then I will suggest you to go for 0.02%-0.01% with these brokers.

If you want to do intraday trading (doing trading 5-10 times/lots a day), then go with Mangal Keshav ( as they provide exposure of 2-3 times intraday) and with Angel broking (for good service).

If you want to do jobbing (doing trading 10-50 times/lots a day), then go with RK Global (only drawback they don’t provide any exposure).


Regards,

iGuru

 

[iGuru]

hi iguru,i have gone through ur complete post.thank u very much fr tahing time to share ur experience.to give my personal information i lost very big amount in nifty future from tht day i am not trading ,i am just learning and gone through technical analysis course.i hope i have gaine good knowledge i technicals(i use GCI,Fxcentral etc...).but still not geting confidence to enter into market.i being a goverment employ,i can trade only evening from 0530 pm till mrg.so i started to learn about commodities and like to trade on them.sir i am using ODIN can u please suggest how to trade with tick charts(i am very much intrested in tichnicals),for analysis i am using 15 min,pivots points and candlesticks reversals in GCI demo software.but by doing this i hope i cant keep the risk minimum as per ur guidlines.are there any intraday tick chart patterns for trading .And now discussing about ur guidence given to one of our friend to do spread trading(as he also comfortable in trading during evening time).sir how to select the script for this spread trading,is it that we have to see the difference between the contracts or any other parameters.

Hello Mr Kumar,

Thanxs for your Comment.

First of all I want that, you must believe in yourself....... your knowledge & skills. Make yourself believe that whatever decision you are taking is right, make it believe from your heart but make decision from your brain. And whenever you think that you are or going to be wrong immediately exit from that decision. Once you will be able to do this....... Success will follow you. Trust me try it in your life & see the difference in yourself. It works for me.

So dont lose your confidence anymore and start doing trading (According to me Trading are for those traders who really want to have fun & adventure in their lifes and want to take risk in the life. If anyone cant do or take it......... then better stay out of this game).

I will suggest you to first start doing paper trading for couple of months. Then start with 1 Mini lot & then to 1 standard lot in Commodity market.

Being a technical trader, I use different combination of analysis for making decision while trading.

1st I look to daily charts to understand the view for daily trend along with the fundamental factors and then I take my decision for trading.

And then for day trading I have two trading Style/Strategy:

1st is Intraday trading, in this I use 1 hour charts to take my decision for trading and it help me a lot to achieve my daily 1% - 2% target on my investment.

2nd is Jobbing, in this I use 5 15 mins Charts to make my decision for trading. And it helps me to achieve my minimum target of 1% per day.

For the above trading style, I use Candlestick charts looking for continuation & reversal pattern for trading, specially at the support & resistance level as my entry & exit strategy for trading intraday as well as positional. With it I use the different indicators which I already mentioned in the thread.

In Candlestick charts I look for Engulfing, Hammer & Hanging man, Shooting star, Harami, Piercing, Dark cloud cover & Doji patterns. These are the most common patterns occurs in any charts. As it will be very difficult to watch and implement more than 50 types of candlestick patterns for trading. If possible to learn all these will help in trading a lot but it will also create confusion to make decision while trading also.

For your last query regarding Spread trading, currently Im working on that and hope to come up with a thread soon regarding Spread strategies, methods & the script on which it will be profitable etc.


Regards,

iGuru

 

[tnandkumar]

hi iguru sir,
thanks for taking time to explaining,i will be starting my paper trade soon,can you tell me what are the fundamental data to be considered for taking a decesion for trading commodities apart from technicals (pivot poins,candel stick reversals,moving average crossovers)

regards

 

[ayush2020]

hii dear iguru ji
in this post as u have mentioned for jobbing what is the parameters we can use??

can i have ur y ahoo mesenger id???

mine is ayush111222 thanx

 

[sprintravi75]

hi dear iguru,

Thanks for one more valuable thread. You always give different valuable informaiton with a distinct view about market and trading systems. Thanks for the information.

Regard
Ravi.A

Hi,

Thanxs for your comment.

My daily Risk is of Rs. 2,000 for intraday and for Swing my risk varies from commodity to commodity (5,000 - 10,000). To get 1 paisa (i.e. 0.01%) brokerage with any firm you need to have an daily commitment of Rs. 2-5 crores of Turnover.

I don't know whether any brokerage house can give you 0.01% brokerage initially (as you mentioned above that you want to start trading in commodity), but what I can suggest you that for learning you can start with 2-3 paisa brokerage with any Broker & then reduce it to 1 paisa or you can open an account with RK Global or with any cheapest brokerage provider in India whom you can trust.

In my case I have 1 paisa brokerage because I'm the Sub broker and being a Sub Broker my Turnover is more than 7 Cr. per day.............. which helps me & my clients to have the brokerage advantage as compare to any other Traders.


Regards,

iGuru

 

[iGuru]

hii dear iguru ji
in this post as u have mentioned for jobbing what is the parameters we can use??

can i have ur y ahoo mesenger id???

mine is ayush111222 thanx

Hi Ayush,

Hope, I clear all your doubt w.r.t Jobbing. If you still have any doubt then please call me any time. I will be happy to help you out.

 

[ayush2020]

thanx dear iguru ji.....