Important lesson for everyone who trades Crude

augubhai

augubhai

Well-Known Member
#13
#13
Well... I do not use news or data in my day trades. (I am not saying that others should also not use, just mentioning so that I am not misinterpreted)

On that trade, I was able to get out at my Stop Loss... but what if the move had gone in my favor. I would have made a good profit at a small risk (Always have a Stop Loss in place)

There is an advantage in trading crude on mcxindia. If have a position before 6 PM, once in a while, you will get a huge move in your favor. Usually, the move happens at 6PM or 7:30 PM. crude on mcxindia in liquid enough to be able to get out with no significant slippage at your Stop Loss, even when the Stop Loss is Rs.30 away from current price.

I will try to post my trades on the 30 minutes mcxindia charts, whenever I see such moves.
 
D

dasajitkumar

New Member
#18
#18
piyush08 said:
Dear Mr Augubhai ya jo bhi bhai... and other who agree with him.. what do you guys just bring some capital and start trading a product without doing any research about it or the market... Are you guys like totally clueless data releases in US. How do you guys survive without even knowing the basics boss !!

Ok, read and learn. Most of the commodities on MCX majorly move in the evenings. Why? Cause that's when traders in US come start trading and they bring in volumes, liquidity, trend and momentum. In short they decide where price goes. Asian and European traders hardly determine meaningful price movement.

What time do these traders come in - There is no fixed time per se, like 6pm or something. Usually movement starts building up around 5:30pm and continues till 9:30 after which market quietens down majorly. Crude is the only market which still has decent movement after that. For 4 months a year when DST is applicable this time shifts one hour ahead from 6:30-10:30pm.

Economic data releases - There are regular economic data releases in US, some of which are trivial, some slightly important and some majorly market moving. The biggest of them is the Non farm payrolls (Employment data), which comes out on the first Friday of every month at 6pm IST. In case of DST (the time when MCX closes at 11:55pm instead of 11:30pm), the release is at 7pm IST. So now go back and check what 5Aug2011 was. It was the first friday of August, and at 6pm NFP data came out. Which is why the huge gap up. Go check the charts of other commodities. There must have been huge moves in Copper, Gold, Silver, Lead, Zinc, Nickel everything. NG is the only one which doesn't react at all. If you are trading through this release and holding positions its your damn fault. Who do you even survive trading through news release. I am amazed. What, nobody in domestic markets knows all this stuff or what?

In August only on one friday there was the downgrade of US Sovereign ratings by S&P after market close. MCX is open on saturdays. Sat morning I was expecting huge gaps in all markets, but everything opened flat. I couldn't believe the prices. I just shorted crude/copper and bought gold at the open. People sitting here in India were just ******* clueless. I made 5 lakhs that day. What an easy trade. Wake up guys !!!
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Hello Piyush08,

you are absolutely correct due to the US "Non form payroll" the crude price raised up by 150 points.

How do i know which news will impact to which commodity and how much?

Can you put some light here as i am new to commodity trading?

Thanks,
Ajit
 
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