Learning through blunders

[simplebuthard]

Traders Please Note:
Commodities contracts require 5x times normal margin from 5 days before date of expiry. So if you don't square off before date of expiry you might get a margin call.

Which broker you are using for this commodity trade?

 

[newtrader101]

Zerodha.


Shouldn't they be mentioning this somewhere?

 

[newtrader101]

Why you should stick to the TF in which you opted for the trade
This is a short trade in Silver. Decided based on the daily chart, entered on hourly. Stop was at recent high on daily.
On 19 and 20 Oct 2017, it veered back sharply. On the hourly, it did go above the 3rd high from left, made on 17th (see the threatening bumps on the right hand side). But on the daily, it didn't break the recent high. So trend was still in place.

The Hourly chart:

The Daily chart:

 

[newtrader101]

Silver and the planets
Silver seems to reverse within 5 degree of Venus ingress into a new sign.
If there is a major planetary aspect, then Silver may reverse again. Eg- the recent Jupiter Pluto square on 7-8-17.
Lilith Saturn and Lilith Venus aspects.

Note: There is no guarantee it will reverse. You will always have to use stop loss and MM- then this higher probability may help you.

 

[Raj232]

Traders Please Note:
Commodities contracts require 5x times normal margin from 5 days before date of expiry. So if you don't square off before date of expiry you might get a margin call.

Are you sure about this, couldn't find any info on this. Their margin calculator also does not mention anything about 5x times normal margin from 5 days before date of expiry. Thanks.

 

[newtrader101]

Last month I received a margin call and their executive told me this was the reason (I was holding Goldpetal and it was less than 5 days near expiry).

 

[newtrader101]

Van Tharp says sticking to one stock will increase your gains. Truly so.

 

[newtrader101]

While trading with Bollinger Band + Stochastics

• High probability of reversal when price hits extremes on both indicators around the same time
• If price hits the middle BB and stochastics has a crossover at that point, price is very likely to move in that direction.

E.g:

1. Price moves down from BBUpper, Stochastics moves down from Overbought.
2. Price reaches middle band.
3. Now Stochastics does a bullish crossover.

In this case, price is most likely to reverse and go back up.

 

[timepass]

What parameters are you using for stochastics ?

I guess BB is 20 period.

While trading with Bollinger Band + Stochastics

• High probability of reversal when price hits extremes on both indicators around the same time
• If price hits the middle BB and stochastics has a crossover at that point, price is very likely to move in that direction.

E.g:

1. Price moves down from BBUpper, Stochastics moves down from Overbought.
2. Price reaches middle band.
3. Now Stochastics does a bullish crossover.

In this case, price is most likely to reverse and go back up.

 

[newtrader101]

What parameters are you using for stochastics ?

I guess BB is 20 period.

Hi Timepass,
Using Stochastics default in Zerodha - 80,20, period 14.
And yes BB is 20,2.

Reducing Stochastics period gives more hits, but I'm not sure if this is right.

In the chart above it is Tradingview default settings. This is also working well.