The Golden Rules Of Commodity Trading With NSE & BSE Report

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END OF THE DAY REPORT (25 JUNE 2015):

Nifty ends just below the crucial mark of 8400 on Expiry day:

Markets started on quite note and remained cautious due to Greece issue, but recovered in the latter half and again regained towards 8400 and closed around it. It is notable that 200 day SMA is acting as stiff resistance for nifty and constant reversals are seen from the same. Any closing above 8450 will further surge Nifty while 8300 is seen as strong support from current levels.

HEADLINES FOR THE DAY:

Prime Minister Narendra Modi launched 3 urban development scheme: Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All.

  • Anshul Kant is new CFO of SBI.
  • Greece failed to reach towards any agreements with its International creditors.
  • Tech Mahindra selected by Circle Health as their technology partner for 10 yrs.
  • Manpasand Beverages allotted 45% of the total issue size of Rs 4 bn.

KEY STOCKS FOR THE DAY:

  • L&T won a second order in this week; rose 3.5%.
  • KPIT Tech dipped up to 14% on the back of rumors of promoters selling stake in the company.
  • Escorts tied up with Cognizant to transform its businesses digitally.
  • Crompton Greav formed partnership with SOGO to enlarge its Consumer appliance portfolio.
  • Cupid won orders worth Rs 1.03 bn from NDOH, South Africa.
  • JMT Auto stock locked in 20% upper circuit on turning ex-split as company share price adjusted for 1:5 split.
  • MMTC rallied as per the renewal its agreements for supply of high grade iron ore to Japan and South Korea.
  • Alstom Grid Holdings acquired 6.46% of Alstom T&D as an additional stake in the company.
  • BHEL on three month high; reported its project of NTPC’s Bongaigaon thermal power plant.
  • Vadilal Industries flied over the index marking 52 week high on the back of strong volumes.
  • Ramkrishna Forgings rallied for the seventh day after their statement of upgradation of company by ICRA.
  • Cairn and Vedanta Ltd rose on back of initiation of the merger process.

NIfty Calls And Nifty Tips For Next Trading Session:-

  • CENTURYTEX has been trading around the important resistance levels above 100 day SMA and soup move can be seen in the stock. Buy above 687 targets 694/701/709 sl 679.
  • M&MFIN had ruled since last few sessions and its strong closing still suggests buying above 285.70 for targets of 288.50/291.30/294.30 sl 282.80.

GLOBAL MARKET:

  • In the global front, Greece woes are the main issue for world markets and according to fresh talks they are still unable to resolve a debt issue and Greece and its international creditors have failed to reach over any agreement ahead of Eurozone meeting.
  • Asian markets ended lower with Shanghai falling 3.5% and Hang Seng and Nikkie lost approx 0.5-1%.

Commodity Trading Rules:-

  • Always first plan your trades and trade your plan.
  • Keep data & records of your commodity trading results.
  • Keep an encouraging attitude, no topic how much you lose.
  • Don’t get the market address. Continually set upper trading aims.
  • Successful traders or investors buy into very bad news & sell into excellent news.
  • Successful traders aren’t afraid to purchase high & sell low.
  • Successful investors have a well-scheduled designed time for analyzing the markets.
  • Successful traders separate themselves from the judgments of others.
  • Continual struggle for patience, determination, perseverance & rational action.
  • Bound your losses – use stop loss!
  • Never stop a stop loss order behind you have located it!
  • Put the stop at the time, you build your trade.
  • Never acquire into the marketplace because you are nervous because of waiting.
  • Avoid getting out or getting in on the market too frequent. Losses formulate the trader studious – not earnings
  • Take benefit of every loss to get better your knowledge of marketplace action.
  • The most tricky task in movement is not prediction, but self-manage. Successful trading is tricky & frustrating. You are the most vital element in the sequence for success.
  • Always regulation yourself, by following a prearranged set of rules.
  • Remember that the bear market will provide back in 1 month what a bull marketplace has taken 3 months to construct.
  • Don’t ever permit a big winning buy and sell to turn into a loser. Stop own self out, if the marketplace moves opposite you 20 percent from your peak earnings point.
  • You should have a pre-arranged program, you should know your whole program, and you should follow your program.
  • Expect & accept losses charmingly. Those who brood more than losses always let pass the next chance, which more than probable will be gainful.
  • Split your earnings right down the center and never peril more than 50 percent of them once more in the market.
  • The key to winning trading is recognizing yourself and your pressure point.
  • The dissimilarity between winners & losers is not so much resident ability as it is regulation exercised in avoiding errors.
  • In commodity trading as in lattice there are the rapid & the dead.
  • Silence is golden rather speech may be silvers. Traders or investors with the golden touch don’t talk about their achievement.
  • Dream huge dreams and think high. Very few populace set aims too high. A man becomes, what he believes about every day long.
  • Accept stoppage as a step towards triumph.
  • Have you in use a loss? Forget it quickly. Have you been getting a profit? Forget it even earlier! Don’t let ego & greed inhibit soft thinking & hard work.
  • One cannot perform anything regarding yesterday. When one gate closes, another gate opens.
  • The greater chance always lies from side to side the open door.
  • It’s much more easier to place on a trade, than to get it off.
  • If a marketplace doesn’t perform what you believe it must do, get out.
  • Beware of big positions that can manage your emotions. Don’t be excessively aggressive with the marketplace. Treat it quietly by permitting your equity to grow progressively rather than in bursts.
  • Never add to a trailing position.
  • Beware of annoying to choose tops or bottoms.
  • You should believe in yourself & your experience, if you wait for to build a living at this game.
  • In a narrow marketplace, there is no logic in trying to anticipate, what the after that big movement is leaving to be – up or down.
  • A loss not at all bothers me after, I get it. I am not remembering it, overnight. But being wrong and not taking the loss – that is what does the damage to the pocket book and to the soul.
  • Never volunteer advice, Commodity Tips and never brag of your archiving.
  • Of all tentative blunders, there are a few greater than vending, what shows a income and keeping, what shows a defeat.
  • Standing sideways is a position.
  • It is improved to be more engrossed in the market’s response to new data & information than in the part of the news itself.
  • If you don’t make out who you are, the markets are an expensive place to find out.
  • When the boat starts to sink, do not pray – jump!
  • Lose your judgment – not your currency.

Dealing in Commodity Futures

Some Do’s & Dont’s In Commodity Future Trading:-

  • Read, understand & be updated concerning the guidelines, Commodity MCX Tips, rules and circulars of the Commodity Exchange and of the Forward Markets Commission (FMC) issued from day to day and kept on the individual websites.
  • Examine the commodity agreements circulars issued and kept on the MCX market websites and carefully note the agreement specifications of the commodities in which you desire to trade. The agreement specifications are topic to change from day to day.
  • Previous to entering into trade deals please be aware of every of the factors, that go into the method of pricing, clearing, trading & settlement.
  • Study the product memo of the commodity, in which you desire to contract to recognize the commodity and it’s parameters that force on the commodity trading & resolution of the commodity.
  • Understand the Delivery and Settlement Procedures already given in the Commodity Exchange Circular of the commodities kept on the Commodity Exchange website that you want to deal in the commodity futures market.
  • Study historical & seasonal rate movements of the commodities that you want to deal in the commodity futures market.
  • Keep track of the Governments’ Policy announcements from day to day of the commodities that you want to deal in the commodity futures market.
  • Apply yourself prudent decision for money investments in the commodity futures and get informed decisions.
  • Comply with duty and other Central Government or State Governments dictatorial issues.
  • Go through every Rules, Regulations, Bye Laws, Circulars & directives issued by the MCX.
  • Since commodity futures trading magnetize various kinds of margins, be conscious of the risks connected with your locations in the market and margin calls, Commodity NCDEX Tips made from time to time.
  • Collect or Pay Mark to Market margins, cheque on your commodity futures positions on an every day basis from/to your associate.
  • Be conscious of your peril, taking ability and secure stop-loss (SL) limits. Liquidate your trading positions at such levels to decrease further losses, if any.

Don’ts

  • Do not go down a prey to marketplace rumors.
  • Don’t go by any explicit or implicit assure made by analysts or advisors or experts or market intermediary awaiting convinced
  • Don’t take trading options based on reports or predictions made in a variety of print and electronic mediums lacking proper evaluation.
  • Do not contract based on Bull or Bear run on commodity market sentiments.
  • Do not buy and sell on any commodity product lacking knowing the risks connected with it.

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