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

[myamit]

Tonight 9:00 PM crude oil inventory data is being released after that traders would move the market confidently.

Hello Kamlesh,

Is it a good idea to take alternative position on crude around 8:55 pm? For example, I wish to buy Jan contract & sell Feb contract with 25 points stoploss either side.

Do you think this will give me sure shot returns in case of large volatility (which is generally there after inventory release)?

Do let me know your views & how to play this effectively.

Regards,

 

[uttamkamlesh]

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[NANDAMAD]

Thank you and regards.

 

[uttamkamlesh]

Hello Kamlesh,

Is it a good idea to take alternative position on crude around 8:55 pm? For example, I wish to buy Jan contract & sell Feb contract with 25 points stoploss either side.

Do you think this will give me sure shot returns in case of large volatility (which is generally there after inventory release)?

Do let me know your views & how to play this effectively.

Regards,

To your idea i would give a thought and then i would comment.

I have done similar things earlier but after the data release TA survives, Trend survives, It's better to take position based on the chart reading. That's my conclusion.

One funda that worked for me for few months place a buy stop as well as sell stop just before the data release on 15 min candle. One order acts as stop loss for the other. Maximum loss is limited and known. I used to risk 1500 to 2000 at max and kept on doing for some 20 weeks, sometimes market used to hit both orders(loss), sometimes one order hit and then trail with SL order.


Made some money but finally learnt that chart reading is better way to survive as where to book profit etc. how to move SL can not be judged logically without knowing support resistance areas.
This recession fear disturbed the rhythm between inventory data and crude movement. Till then it was going alright.

 

[uttamkamlesh]

Kamleshji, I dont see the trend on my charts that you have drawn on your charts for the NG for the buy signal. Wonder if its coz you are using log charts?

http://imageshack.us/f/546/31599685.gif/

Cheers!

Is it your GCI chart for NGas?...

 

[maxg]

Kamleshji ,

These days the exchange volatality is much more than what it was previously and sometimes the international trends gets negated by the rupee usd movement. In your experience what should be our strategy for combating the inr-usd volatality

 

[uttamkamlesh]

If dual WW pattern forms on NIFTY as depicted in the chart i posted above, let me make a wild guess,

NIFTY's bottom is coming soon at around 4400.

This guess comes from the WW psychology and experience with WWs.

 

[uttamkamlesh]

Kamleshji ,

These days the exchange volatality is much more than what it was previously and sometimes the international trends gets negated by the rupee usd movement. In your experience what should be our strategy for combating the inr-usd volatality

That's why i want to open account with international broker.

Well... i think we can not do anything to it.
In our earlier trade this volatility hampered profits.
But i can see WC coming on rupee-dollar chart, so this time it would affect positively.

In this trade Reward/Risk is good enough.
Risk =102.66-101.2=1.46
Target=101.2-92.5=8.7

R/R=8.7/1.46=5.6

 

[uttamkamlesh]

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[nicktrader]

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I have an account with motilal securities. They gave a tip to buy crude at 5402 and 10 min back messaged again to exti at CMP 5420. So may be it is heading down.....