Hello,
Commodities trading is relatively new to me. It's my third day on the MCX although I have done some paper trading for the last couple of months.
I did notice that Zinc and Lead dropped in price on April 9th (I discovered today evening that the price drops in Zinc and Lead is/was due to the European Central Bank announcing on April 9th that it is raising its interest rates.) As my starting capital is Less than Rs 12,000, I focused on Aluminium, Zinc and Lead for trading since their minilots needed less margin to trade. Aluminium was more strong and I noticed today that while it did drop in price due the ECB news, it recovered within 4 days of the ECB interest rate news while Zinc and Lead continued to drop in price (Zinc seems to be recovering since the 29th.)
My last short was unfortunately at Rs 100.2 for Zincmini on May 29th and I let it continue overnight (I can afford some losses to get attuned to overnight/delivery commodity trading) on the 29th and today in the event that Zinc drops to Rs 95.
It seems to me at Zinc and Lead may start rising in price by May 9th (Zinc may have started to reverse it's price fall on April 29.)
Which metal (Zinc or Lead) may have a higher rate of change after May 9th which is when both their RSI reach or bound away from their over sold zone? Prices for Zinc seems more volatile/reactive than Lead although I could be mistaken.
I'm thinking of:
-squaring off my short sell on Zincmini (accepting the loss,) go long in Alumini till May 15th and then go long on Zincmini or Leadmini.
-Continue my short sell on Zincmini in the event it drops to Rs 95 risking further losses if Zincmini rebounds earlier than May 9th (I can afford a Zincmini price rice to about Rs 103 and Zinc mini closed at 102.1 today.) Go long on Zincmini or Leadmini on May 15th (or earlier) if/when their prices start rising.
What do ya more experienced and successful traders have to say/think?
While Zincmini is more volatile and more profitable when trades go in the correct direction, Leadmini may be consistent and profitable when it is time to go long? Leadmini does seem to be more profitable to trade than Alumini.
Commodities trading is relatively new to me. It's my third day on the MCX although I have done some paper trading for the last couple of months.
I did notice that Zinc and Lead dropped in price on April 9th (I discovered today evening that the price drops in Zinc and Lead is/was due to the European Central Bank announcing on April 9th that it is raising its interest rates.) As my starting capital is Less than Rs 12,000, I focused on Aluminium, Zinc and Lead for trading since their minilots needed less margin to trade. Aluminium was more strong and I noticed today that while it did drop in price due the ECB news, it recovered within 4 days of the ECB interest rate news while Zinc and Lead continued to drop in price (Zinc seems to be recovering since the 29th.)
My last short was unfortunately at Rs 100.2 for Zincmini on May 29th and I let it continue overnight (I can afford some losses to get attuned to overnight/delivery commodity trading) on the 29th and today in the event that Zinc drops to Rs 95.
It seems to me at Zinc and Lead may start rising in price by May 9th (Zinc may have started to reverse it's price fall on April 29.)
Which metal (Zinc or Lead) may have a higher rate of change after May 9th which is when both their RSI reach or bound away from their over sold zone? Prices for Zinc seems more volatile/reactive than Lead although I could be mistaken.
I'm thinking of:
-squaring off my short sell on Zincmini (accepting the loss,) go long in Alumini till May 15th and then go long on Zincmini or Leadmini.
-Continue my short sell on Zincmini in the event it drops to Rs 95 risking further losses if Zincmini rebounds earlier than May 9th (I can afford a Zincmini price rice to about Rs 103 and Zinc mini closed at 102.1 today.) Go long on Zincmini or Leadmini on May 15th (or earlier) if/when their prices start rising.
What do ya more experienced and successful traders have to say/think?
While Zincmini is more volatile and more profitable when trades go in the correct direction, Leadmini may be consistent and profitable when it is time to go long? Leadmini does seem to be more profitable to trade than Alumini.
Last edited:
