How to trade Commodities - Gold, Silver, Crude Oil, Natural Gas

[ayush2020]

Hi Abhi

No issues, stops are part n parcel of trading business.

Cheers

dear i have added that option where we can get chart formations..but im confusing more as some times it gives bullish on daily chart and at same time bearish in 30 min or 1 hour chart .. so how we can trade on this??

2 nd thing is some times so many chart patterns came in same time frame... if some one is bullish or bearish thn what next step ? plz guide us on this.....

 

[uttamkamlesh]

Your Money Management View is awesome, I love it.

Could you please also give your Time Management view (for working professionals/students). I always wonder, how do you manage to keep a check on the price charts and trades along with your day job. I find myself thinking about whats happening if I take a trade and am not at a computer and if I am at the computer, I keep looking at it all the time which puts the rest of the life/responsibilities in pending mode. Kinda hard to not look at whats happening with your trade and focus on other stuff.

Please let us know, how you manage it. I read what you said earlier, that you look at it in the morning and then at night? How do you do that?

SG Sir has already put the essence.

Well ....if one knows the System and it's Edge and have Faith in the Edge then only it's possible to stay cool. Markets do the same thing again and again [Jesse Livermore has also said " There is nothing new in the Wall Street."]

Professionals should trade only Daily charts. Daily candles are very strong and interpreted more correctly and in fact my big trades come on Daily charts. And to track your trades on Daily charts you just need one hour to see after market's close if all is going well. Also, if you keep on watching the charts all the time that is dangerous to emotional stability during the trade.

When i put the trade with a very logical Stop Point nothing to worry too much as i have already accepted the risk. Market cannot hit me harder than that.

Read 'Reminiscences of a Stock Operator'....you would finish it in 2-3 days. You would learn so many things about markets.

 

[uttamkamlesh]

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[VJAY]

Dear Kamleshji,
Please check your stoploss.....i think it's typo?
Or is it after enter short put stop abv that swing high??

 

[Kaboooooom]

SG Sir has already put the essence.

Professionals should trade only Daily charts. Daily candles are very strong and interpreted more correctly and in fact my big trades come on Daily charts. And to track your trades on Daily charts you just need one hour to see after market's close if all is going well. Also, if you keep on watching the charts all the time that is dangerous to emotional stability during the trade.

I understand the part about the confidence and accepted risk. I have been trading stock futures based on EoD candles and in that case I am even able to trade during off market hours only (kinda like Dracula, I take decisions at night, put in my order at that time only and don't need to check it during day). However with Crude I am not that much familiar since this is new to me. Moreover, I have observed that my rules about Daily candles and EoD charts dont work that well on Crude (as they do on Stocks), I guess, its because Crude has many more factors working it than any particular stock and following your views (and other experienced traders), I observed that you guys are relying much more and analyzing 60 minute candles (and I see, Crude conforms more to 60 min candles than daily ones); which in turn gets me up on the terminal during day.

Are you able to put both stop loss and profit booking order with your broker. As I thought we can only place one order against an open position (either stoploss or target).

Ordering the book you mentioned

Thanks for your great work, its helping us a lot.

 

[NTrader42]

dear i have added that option where we can get chart formations..but im confusing more as some times it gives bullish on daily chart and at same time bearish in 30 min or 1 hour chart .. so how we can trade on this??

2 nd thing is some times so many chart patterns came in same time frame... if some one is bullish or bearish thn what next step ? plz guide us on this.....

Hello Ayush

I will not be able to comment on the "chart formations" you have referred to. I don't know what they are or what code/options you are using. For trading use only the things you understand thoroughly. If you are confused about something don't use it or make efforts to learn more.

As for using / referring to multi-time frame charts, it is really very simple. Always go with the trend direction shown by the higher time frame charts.

Suppose you want to trade the H1 time frame and are referring to daily for trend direction, then take only the trades on H1 that are in the direction of Daily trend.

For intraday trades I am basing my entries on H1 charts and trailing stops using 15 Mins charts, effectively it is trade in the direction of H1 using 15 Mins charts. For scalping types of trades I use the trend direction from 15 min charts and manage the trades based on 5 min charts.

Thanks

 

[uttamkamlesh]

Dear Kamleshji,
Please check your stoploss.....i think it's typo?
Or is it after enter short put stop abv that swing high??

I have already shorted one lot. If it goes to kiss TL i am going to short again
then when down hill starts i would add 1 more contract. For me Stop is around 98.76, market is not going anywhere like a rocket.

You may enter now.

 

[uttamkamlesh]

Hello Ayush

I will not be able to comment on the "chart formations" you have referred to. I don't know what they are or what code/options you are using. For trading use only the things you understand thoroughly. If you are confused about something don't use it or make efforts to learn more.

As for using / referring to multi-time frame charts, it is really very simple. Always go with the trend direction shown by the higher time frame charts.

Suppose you want to trade the H1 time frame and are referring to daily for trend direction, then take only the trades on H1 that are in the direction of Daily trend.

For intraday trades I am basing my entries on H1 charts and trailing stops using 15 Mins charts, effectively it is trade in the direction of H1 using 15 Mins charts. For scalping types of trades I use the trend direction from 15 min charts and manage the trades based on 5 min charts.

Thanks

@Ayush
Always go with the trend direction shown by the higher time frame charts.
Robert Miner's book is the best for the purpose.

 

[uttamkamlesh]

I understand the part about the confidence and accepted risk. I have been trading stock futures based on EoD candles and in that case I am even able to trade during off market hours only (kinda like Dracula, I take decisions at night, put in my order at that time only and don't need to check it during day). However with Crude I am not that much familiar since this is new to me. Moreover, I have observed that my rules about Daily candles and EoD charts dont work that well on Crude (as they do on Stocks), I guess, its because Crude has many more factors working it than any particular stock and following your views (and other experienced traders), I observed that you guys are relying much more and analyzing 60 minute candles (and I see, Crude conforms more to 60 min candles than daily ones); which in turn gets me up on the terminal during day.

Are you able to put both stop loss and profit booking order with your broker. As I thought we can only place one order against an open position (either stoploss or target).

Ordering the book you mentioned

Thanks for your great work, its helping us a lot.

Ordering the book you mentioned .........Don't order any book just download from 4shared.com. The only book you should buy from market is (TA of Stock Trends - Edwards and Magee"

Are you able to put both stop loss and profit booking order with your broker. As I thought we can only place one order against an open position (either stoploss or target)..........Every order is independent at exchange. I can place both orders, SL and Tgt.

Crude is being traded with most basic or classic tools all of which are there in Edwards and Magee.

 

[Kaboooooom]

Ordering the book you mentioned .........Don't order any book just download from 4shared.com. The only book you should buy from market is (TA of Stock Trends - Edwards and Magee"

Are you able to put both stop loss and profit booking order with your broker. As I thought we can only place one order against an open position (either stoploss or target)..........Every order is independent at exchange. I can place both orders, SL and Tgt.

Crude is being traded with most basic or classic tools all of which are there in Edwards and Magee.

I cant really read books on screen but I ill try it once more.

Regarding Square Off orders, independent orders require additional margin and even if I place one square off order and another independent order (with additional margin) and I am not looking at the price/charts during day, both of them might get executed (if there is a wild swing).