how much return you expect from commodity market

[ashwani chadha]

I'm short on lead since 108.3 today. I did not have the nerve/psyche to short at 112.35 yesterday even though I received signals to do so. The prices are for October contracts where lead last dipped to Rs~102 and may dip further.

What do senior successful and experienced traders have to say when formulating an exit strategy? Is it time to exit a positional trade/EOD trade when R1 is broken (I think this is the answer) or time to exit only when R3 is broken?

AS FAR AS R1 R2 AND R3 ARE CONCERNED ,IT DEPENDS ON YOUR WAY OF TRADING ,WHEATHER YOU ARE A( MOVE TO MOVE TRADER)OR(MOVE TO CORRECTION TRADER) OR (CORRECTION TO CORRECTION TRADER)
IF YOU ARE A move to move trader trader THEN YOUR ANSWER RI IS quite near to right (subject to current position of price) ,IN CASE of correction to correction trading ,IT will not work
as share khan dont provide this facility,so i dont no the position of price of lead oct contract at present
you can provide chart if possible,so that i can explain clearly

 

[Klewtar]

@Ashwani: Thank you very much for your insights. I was not sure whether to use Rs 2,000 or Rs 1,500 as trailing stop loss so I asked about using R1. R1 for today (based on bhav data for yesterday) is 108.4 and I do not have profits from that since I opened my short trade at only 108.3.

The tip of using 11:00 high for trailing stop loss is very, very valued. I was thinking of stop loss where it is lowest price + Rs 1,500 during times that I am away from the computer. I need to learn how to find ATR in Sharekhan's trade tiger.

I am also using Sharekhan for October contracts. When selecting LeadMini, I chose the October contracts instead of September.

Please forgive my lack of understanding the difference between move to move, move to correction and correction to correction trading.

 

[ashwani chadha]

@Ashwani: Thank you very much for your insights. I was not sure whether to use Rs 2,000 or Rs 1,500 as trailing stop loss so I asked about using R1. R1 for today (based on bhav data for yesterday) is 108.4 and I do not have profits from that since I opened my short trade at only 108.3.

The tip of using 11:00 high for trailing stop loss is very, very valued. I was thinking of stop loss where it is lowest price + Rs 1,500 during times that I am away from the computer. I need to learn how to find ATR in Sharekhan's trade tiger.

I am also using Sharekhan for October contracts. When selecting LeadMini, I chose the October contracts instead of September.

Please forgive my lack of understanding the difference between move to move, move to correction and correction to correction trading.

i will explain in some spare time

 

[ayush2020]

hello Ashwani boss,
i was away from this forum for some long time !!! from now onwards will give my total time to this thread and forum.....

just for curiosity is it the correction of metals and crude ?? or still buy in dip strategy is applicable??

 

[canif_rajiv]

thnks for the info

 

[ashwani chadha]

hello Ashwani boss,
i was away from this forum for some long time !!! from now onwards will give my total time to this thread and forum.....

just for curiosity is it the correction of metals and crude ?? or still buy in dip strategy is applicable??

dear ayush,
although market is falling like a knife,ready to killl bulls,but still, in my view these type of sharp falls can not stand more then a week,so by end of next saturday ,every thing should be smooth and consolidation which such a major fall require,should also be over ,by end of next week ,i am talking about commodity only, not nifty or stocks and it is just my judgement,may be wrong also

 

[pintu1781980]

someone said HISTORY REPEATS is it really true? if yes than this is just a timepass & purely imagination. plz share your thoughts.

 

[Rajeevji]

someone said HISTORY REPEATS is it really true? if yes than this is just a timepass & purely imagination. plz share your thoughts.

Ashwani has written earlier that if a trader can control silver then he can control any other commodity. Obviously silver is very volatile.

What does this chart mean for us: In order to trade silver/commodities, we should use low leverage? We should not be eod traders but use shorter time frame like one / four hours so that amount at risk is low and we are out of the market when foreign markets are open but ours closed?

regards

Rajeev

 

[ashwani chadha]

someone said HISTORY REPEATS is it really true? if yes than this is just a timepass & purely imagination. plz share your thoughts.

i thank you for providing these two wonder full charts
its comparison gives a clear indication,that a big fall in silver is still balance.
but first i would like to point out the flaws in these two charts
first:200 day ema is the best indicator of trend,even to day
two:200 day ema,combind with 50 sma and break out on upper side is called GOLDEN CROSS OVER--SIGN OF STRENGTH
three:200 day ema,combined with 50 sma and break out on lower side,is called BLACK CROSS OVER---SIGN OF WEAK NESS
four:60 sma/200ema combination is wrong
five:above combination of 50sma/200ema is permitted on eod charts only ,not on weekly charts
six:try to use this combination in weekly chart is wrong
sevenn weekly chart 200ema ,alternative is used and that is 50 ema
eight:so use of 200 ema on weekly chart is wrong,that will represent cycilical changs,for trading point of view these changes are irrelevent
so you can not rely on these two charts
TOMMOROW I WILL EXPLAIN ,HOW SILVER HAS GIVEN 8000-10000 POINTS
JUST BY USING VERY SIMPLE INDICATOR THAT IS STOCH IN JUST TWO DAYS,WHICH EVEN A VERY NEW TRADER CAN USE

 

[ashwani chadha]

i thank you for providing these two wonder full charts
its comparison gives a clear indication,that a big fall in silver is still balance.
but first i would like to point out the flaws in these two charts
first:200 day ema is the best indicator of trend,even to day
two:200 day ema,combind with 50 sma and break out on upper side is called GOLDEN CROSS OVER--SIGN OF STRENGTH
three:200 day ema,combined with 50 sma and break out on lower side,is called BLACK CROSS OVER---SIGN OF WEAK NESS
four:60 sma/200ema combination is wrong
five:above combination of 50sma/200ema is permitted on eod charts only ,not on weekly charts
six:try to use this combination in weekly chart is wrong
sevenn weekly chart 200ema ,alternative is used and that is 50 ema
eight:so use of 200 ema on weekly chart is wrong,that will represent cycilical changs,for trading point of view these changes are irrelevent
so you can not rely on these two charts
TOMMOROW I WILL EXPLAIN ,HOW SILVER HAS GIVEN 8000-10000 POINTS
JUST BY USING VERY SIMPLE INDICATOR THAT IS STOCH IN JUST TWO DAYS,WHICH EVEN A VERY NEW TRADER CAN USE[/QUOTE