Commodity Trading for beginners -Capital Acquire

Commodity Trading for beginners

Commodity Trading for beginners and how beginners make good returns, here in this topic we discuss how new traders or investors earn good money from the commodity market. The commodity markets always provide a wide range of earning sources from commodities, but due to lack of knowledge and beginning level in the commodity market, most beginners lose their hard earn money and our from the commodity market.


Below you can see the commodity market and their trading pattern.


Commodity Trading for beginners


So now the question is how the commodity beginners start their trading and earn a regular income from this market, so first of all beginners require a trading account in the commodity market. In the Indian mcx market, there are too many broking companies who open accounts. The minimum time required to open a commodity trading account is 24 hours. Here below I add some most important broking firm account opening links you all can open your trading account in a 24 hour time period.



Zerodha broking firm account opening link.



Alice blue account opening link.



Here in this blog, I will share with you one of the most accurate trading strategies for beginners for getting continuous results.

The strategy is very simple when we trade in the commodity market. First of all, we need to start with a very small amount, usually 5000-10000. In this investment amount, we trade everyday commodities like silver micro or gold petal. We also use cover order or bracket order and trade in silver mini or gold mini.

SILVER MINI INTRADAY CANDLE CHART
SILVER MINI INTRADAY CANDLE CHART


Here below you can see the gold mini intraday chart.


GOLD MINI INTRADAY CANDLE CHART
GOLD MINI INTRADAY CANDLE CHART



Use capital acquire three basic rules to become a good trader as a beginner.


Rule no.1


Money management is always our first rule while we trade in the intraday market either equity market or commodity market. Money management plays a very important role while we trade in the mcx market.

Always take risks of your total capital between 1% to 0.5% and also the reward will be double to your risk. This only factor improves your trading skill and saves your capital in intraday trading.

Rule no 2

In MCX day trading, always use 1% target and 0.5% stop-loss; this intraday trading ratio not only gives you profit, but it also saves your capital from the huge risk of capital that you invest for daily trading.

Rule no 3

It is important to make good trading decisions when we trade in the intraday market, for good trading decisions use technical candle charts with some technical indicators like moving average macd indicators rsi indicator or super trend indicator or most widely used vwap indicator.


Rule no 4.

Never forget all the above three basic rules for day trading as beginners.



How to invest in the commodity market


In the Indian commodity market, more than 100 plus commodities traded in futures contracts. We can simply buy or sell commodities for a specific time period like 1 month to 3 months in future contracts of the commodity market.


There are so many advantages to investing money in commodities markets.



1.the commodity futures market is very high liquidity and high volume contracts.
2.the return ratio is also very high compared to other investment plans.
3.commdity market exchange some margin limits to purchase the commodity.
4.in commodity market has the facility to buy or sell commodities and hold for specific time periods usually one month to three months.

Disadvantages of commodity futures trading.


1.the risk associated in the future market is very high.
2.for beginners, it is very challenging to invest money in the commodities market.     
3.international commodity market risk is also very high while we invest in commodities.

how to select a good commodity broker in India


Selecting a good broker in India is also a challenging part. there are too many things when we select a commodity broker. the first one is the trust and credibility of the broker. and the second most important thing is the brokerage charges and extra charges like AMC charges etc.
we should also keep in mind while we selecting a good broker the customer support and guidance when investor or trader at beginning of commodity market trading some time he or she loses their investment due to lack of knowledge of trading and trading operation like order placement and buy-sell position entry or exit time.

the commodity available for trading in MCX India.


Bullions- Gold, Silver.
Metals-zink, lead ,aluminium ,copper ,nikal .
Energy- crude oil, natural gas.
Agriculture- wheat, corn, Cummins seeds, soybean.

Commodity ETF



Commodity ETF stands with commodity equity traded funds. some commodity is also traded in the equity market in the name of equity traded funds. in this type of funds investor or trader directly purchases the small unit of commodity and holds for a long period there is no limit to hold your position.
The most popular commodity ETF is Gold ETF and we can invest money directly in gold ETF. the risk associated in gold ETF is very low and return also very low. the capital security of investment is very high on investment of gold ETF.


Available commodity exchange in India


1.Multicommodity exchange in India
2.national commodity and derivative exchange
3.indian commodity exchange
4.ace derivative and commodity exchange.
5.universal commodity exchange
6.national multi-commodity exchange

Commodity price watch and updates.


to watch live price and commodity market-related news and article, prefer the  Indian commodity exchange website the name of the website is MCX INDIA and the URL of this website is www.mcxindia.com.

Regulated body of the commodity market


the commodity derivative market regulation department (CDMRD) is controlled and regulates the commodity market day to day operations in India. the Sebi completely regulate the commodity market in India and improve the commodity trading and trust related to commodity trading from time to time.

The commodity trading hours


The commodity trade timing is morning 9.00 am to 11.30 pm/ 11.55 pm. the commodity market open for trading every  Monday to Friday.





Thank you

Read also


Best MCX silver trading strategies

 Best MCX silver trading strategies


What are the best intraday silver trading strategies,In this topic we learn the best silver intraday trading strategy. In Indian commodity exchange (multi commodity commodity exchange) MCX silver is traded in three different-different lot sizes the first one is silver mega lot and second one is silver mini lot and third one is silver micro lot.
Below table you can see the silver and their lot size in MCX.


 Best MCX silver trading strategies
mcx silver and their lot size



In Indian MCX commodity market all commodity segments traded for a limited time period usually one month to three month and after this these all MCX contracts expire and new contracts start.This all type of trading is known as derivative commodity trading.

Here below you can see a silver intraday candle chart.


Silver intraday trading strategy
Silver Intraday candle chart



Silver intraday trading strategy


In Indian commodity exchange all commodity trade is between 9.00 am to 11.00 pm. The silver also trades this time frame. So here we discussed What are the best intraday silver trading strategies, for this we need to trade every day at a high low breakout of  the 9.00 am to 5.00 pm intraday market in commodities. Silver trading at 5.00 pm breakout is a very accurate result. 

In silver trading the breakout between 9.00 am to 5.00 pm  of high low gives you high percentage results due to opening of international market. 

Here below I show you some example of 5.00 pm breakout.


Silver 5.00 pm high breakout
Silver 5.00 pm high breakout




So the above figure clearly shows when the price break above the 5.00 pm day high the price continuously move upside and give a big profit.

Silver 5.00 pm low breakout
Silver 5.00 pm low breakout



So the above figure clearly showing when the price break below the 5.00 pm day low the price continuously move downside and give a big profit.


Advantage of silver 5.00 pm breakout strategy

1.It gives us a clear upside or downside trend.
2.chances of very huge profit.

Disadvantage of silver 5.00 pm breakout strategy


1.Sometime price not move so much.
2.Some time due to low volume market will not give a good profit.

Read also 


Intraday trading and their facts


 Intraday trading and their facts


 Intraday trading and their facts: First question in mind what is intraday trading, and to work or trade. From the Indian security market exchange in India, there are three exchanges one is NSE( national stock exchange) and BSE (Bombay stock exchange), and the third MCX( multi-commodity exchange).


Intraday trading and their facts





So the NSE, BSE, MCX, offer to trade a daily basis, means when the market opens every trader buys or sells the stock and commodity and exits on the same day before the closing of the market. This type of trading is known as day trading or intraday trading. In the stock market, intraday trading gives the facility to sell any of the stock and buy on the same day.

In the Indian market for intraday trading, we need a trading account, this type of trading account name is a d-mat account( digital metalize account). The d-mat account is directly connected to our bank account. The best thing about a d-mat account is we directly pay in and pay out money from bank account to the d-mat account. The d- mat account has the facility to withdraw the money in one or two days directly to the bank account.

Intraday trading facts: 


It is a very true 90 % commodity or equity day traders are in loss and only 10 % of people make money in this market. There are several reasons why day traders do not make money in intraday trading. Example grid and fear of the market, proper money management, proper trading discipline, etc.

In this book, we are going to study how to become a perfect intraday trader and how we follow all the rules.




Intraday trading story: In the intraday trading story here I was explaining to you how I am facing problems in intraday trading markets, when I trade-in equity intraday, every day I make new strategies and apply them and at the end of the day my account closes in the form of losses. I have huge losses when I start intraday trading as a beginner. I was researching a lot of technical analysis and fundamental analysis, lots of paper trade & real-time trade. But unfortunately, I have losses in day trading.

What kind of mistake I always make in my intraday trading.


  • My intraday accuracy is almost 80% but my trading account is always overall loss. Just because I have no proper money management. Example. if i do 10 trades in a week, and my profit every trade is 1000 rs so if my accuracy is 80% so my profit is 8000rs. But in only 2 trades I lose more money as compared to my profit. my losses increase up to 20000to 50000 rs. In this, we learn how to manage money and do every trade successfully.
  • Proper risk-reward management: I have no idea how to manage risk and reward, I simply follow trading rules for buying and selling stocks and commodities. But again I am facing a loss overall, when I have 1 % or 2% profit I book my profit earlier and exit my position, but when I have a loss I keep my position and wait for my position to return at profit and this is the reason sometimes I have a huge loss in the intraday market.
  • Proper discipline: in the intraday market, the discipline is playing a very important role, for example, if you do not follow discipline like when your target hit or SL hit but you never exit on target and stop-loss, at that time chances to exit the position in a big loss. So in intraday trading, it is very important to follow discipline in trading.
  • Don't trade on fake news and SMS. These fake news sometimes harm your hard-earned money capital.
  • Don't over trade, some time overtrading is the only cause of losses. As my personal experience for recovering my losses, I lose more money in the market or I paid more brokerage into the brokers. Overtrade is always the cause of paying high brokerage to the brokers.


Intraday trading risk reward ratio:


Here in this topic, we learn a lot about the risk and reward ratio of the intraday market. So let's start with an example.
For example, we have coin and we tossed up the coin so the result will be head or tell, means to the probability of accuracy is 50% similarly in the market if we make position so the probability of winning or losing is 50%

Best intraday strategy


for continuous results in the stock or commodity markets, we always need to follow some money management rules like proper target stop-loss or fix the amount of investment regularly.

here we discuss the best strategy in this blog.

for example, any intraday trader has an intraday investment around 20,000/.. and he uses 5 time limit for day trading, so he trades with a capital of intraday around 100000/.. now for example he purchases intraday reliance industry share with a price of 2000 rs/ per share.

so he buy intraday total share 50 shares. so as per our strategy he needs to always follow 1:2 stop loss and target so he will get a good result at the end of the month 

here below I share a 1:2 ratio profit loss true report of Maruti Suzuki share with proper target and stop loss.

MARUTI SUZUKI RESERCH REPORTS
DATEstockSIGNALENTRYTGTslEXITSHAREpft/loss
03//08/2020MARUTISELL6301620163516201151500
04/08/2020MARUTIBUY6260636062106360151500
05/08/2020MARUTIBUY651266126462653515345
06/08/2020MARUTISELL644363436493649315-750
07/08/2020MARUTIBUY666467646614668015240
10/08/2020MARUTISELL660865086658665815-750
11/08/2020MARUTISELL663365336683668315-750
12/08/2020MARUTISELL663366706683668315-750
13/08/2020MARUTIBUY668867886638673015630
14/08/2020MARUTISELL6691659167416591151500
17/08/2020MARUTIBUY6660676066106760151500
18/08/2020MARUTIBUY6833693367836905151080
19/08/2020MARUTIBUY693670366886698215690
20/08/2020MARUTIBUY693270326882698215750
21/08/2020MARUTISELL703169317081696615975
24/08/2020MARUTIBUY704071406990706815420
25/08/2020MARUTIBUY716272627112711215-750
26/08/2020MARUTISELL7110701071607010151500
27/082020MARUTISELL697468747024702415-750
28/08/2020MARUTISELL712570257175711015225
TOTAL PFT
8355/..


In the above table showing the profit loss report of Maruti stock in intraday trading. the total intraday profit in a month around 8000/.. rs. almost 40% of the total investment in a month.

in the above table for making buy and sell decisions we use wwap indicators. and buy or sell stock at a fixed time morning at 10.00 a.m. so in this strategy the risk-reward ratio is 1:2 which is a fix for all trade.
the target stop loss also fixes intraday investment also fix. 

for detailed about strategy 
contact us.








Read also


Pivot point intraday trading strategy- Capital Acquire

Pivot point intraday trading strategy- Capital Acquire

Here in this topic, we discuss pivot point intraday trading strategy & pivot technical support and resistance. The pivot point indicator is a very important technical indicator, to calculate technical levels. Now here we discussed various uses of pivot point indicators for intraday trading.   

pivot point intraday trading strategy

Before talking about the Pivot point intraday trading strategy using the pivot point indicator first we show you the mathematical formula of technical pivot point indicator.

Pivot point intraday trading strategy & Pivot point is a mathematical tool to calculate support and resistance and it is calculated with the help of high low previous close and open price.  

The pivot point calculation

The pivot point calculation is shown below:


 Pivot Point: (P) = (High + Low + Close)/3
 Support 1 (S1) = (P x 2) – High
 Support 2 (S2) = P  –  (High  –  Low)
(R1) = (P x 2) – Low
(R2) = P + (High  –  Low)


Pivot strategy

Pivot strategy:  In Pivot point intraday trading strategy: trading we need a basic candle chart with pivot point indicator setup, shown below :



Pivot point intraday trading strategy- Capital Acquire

About pivot point


the pivot point is basically a mathematical technical indicator used to predict the current day support and resistance with the help of previous day open, high, low, and close price.
pivot point works with different time periods and gives a result as per the time frame in the technical chart.

Type of pivot point indicator


basically, two types of pivot point indicators are used in the technical chart.

1. standard pivot point indicator


this is the standard pivot point indicator easy to calculate mathematically with the help of previous day high low close and open prices.

here the formula to calculate pivot point is.

The pivot point(PP)
(High+Low+Close)/3
Resistance(R1)
2*PP-LOW
Resistance(R2)
PP+(HIGH-LOW)
Resistance(R3)
High+2*(PP-Low)
Support(S1)
2*(PP-HIGH)
Support(S2)
PP-(HIGH-LOW)
Support(S3)
low-2*(High-PP


2.Fibonacci pivot points



the Fibonacci pivot point is the most popular technical pivot indicator, the Fibonacci mostly used for retracement trading in the Fibonacci pivot point indicator basically used to project or predict to the next support and resistance levels. in the Fibonacci pivot indicator, the trading accuracy is more than a simple pivot indicator that's why the Fibonacci pivot indicator is most widely used technical Fibonacci pivot indicator.

the Fibonacci 38.20% and 61.80 % levels are the most important retracement levels.


pivot pointmathematical formula
Pivot Point (P)(High + Low + Close)/3
upport 1 (S1)P – {.382 * (High – Low)}
Support 2 (S2)P – {.618 * (High – Low)}
Support 3 (S3)P – {1 * (High – Low)}
Resistance 1 (R1)P + {.382 * (High – Low)}
Resistance 2 (R2)P + {.618 * (High – Low)}
Resistance 3 (R3)P + {1 * (High – Low)}



The Woodie's pivot point

in woddie pivot point indicator is totally focus on the previous day closing price. here below the woodie pivot point mathematical formula shows.


pivot pointmathematical formula
Pivot Point (P)(High + Low) + (2 x Closing Price) / 4
Resistance 1 (R1)(2 X PP) – Low
Resistance 2 (R2)PP + (High – Low)
support 1 (S1)PP + (High – Low)
Support 2 (S2)PP – (High + Low)



Camarilla pivot points


the nick Scott camarilla is an inventor of the camarilla pivot point indicator.in a camarilla pivot point indicator, there are 4 supports and 4 resistance levels.
it is very similar to a woddies pivot point indicator.

below the mathematical formula of the camarilla pivot point indicator.


pivot pointmathematical formula
Pivot Point (P)(High + Low + Closing) / 3
support 1 (S1)Closing – ((High -Low) x 1.0833)
Support 2 (S2)Closing – ((High -Low) x 1.1666)
Support 3 (S3)Closing – ((High -Low) x 1.2500)
Support 4 (S4)Closing – ((High-Low) x 1.5000
Resistance 1 (R1)0Closing + ((High -Low x 1.0833)
Resistance 2 (R2)Closing + ((High -Low) x 1.1666)
Resistance 3 (R3)Closing + ((High -Low) x 1.2500)
Resistance 4 (R4)Closing + ((High -Low) x 1.5000)

Demark Pivot Points

Tom demark has invented this pivot point indicator for trading purposes. in this pivot point basically use of open and high price to find the proper supports and resistance.

there is three conditions to find out pivot and support resistance, levels.

If Close > Open, then X = (2 x High) + Low + Close

If Close < Open, then X = High + (2 x Low) + Close

If Close = Open, then X = High + Low + (2 x Close)

pivot pointmathematical formula
Pivot Point (P)X/4
Resistance 1 (R1)X/2 – Low
support 1 (S1)X/2 – High


pivot point working 


in a candle chart or any type of historical price chart the pivot point indicator draws the supported price and resistive price line.

when the price action happens and the price reached the support or resistance levels the intraday trader makes the position accordingly and trade with proper pivot discipline.
so the pivot point indicator basically provides us a trading discipline and also provides entry and exit price in the form of pivot support and resistance levels.

with the help of a pivot point, intraday traders take the right decision and trade accordingly.
\

 Pivot point intraday trading strategy


so here we use the first candle chart and pivot point indicator in the intraday trading chart with 15-minute time frame of candle chart, and buy only those stock after the first 15-minute candle close above the R1( resistance1), and sell only when the first 15-minute candle closes below the S1(supports 1). We need to enter our intraday trade after the first 15-minute candle closes or the opening price of another candle. Similarly sell the stock when the first candle closes or the opening of a new candle.    


Here below see the pivot point chart setup:



   Pivot point intraday trading strategy at buy condition when a 15-minute first candle closes above the resistance 1(R1).

               



Pivot point intraday trading strategy- Capital Acquire
PIVOT POINT BUY CONDITION
              


Pivot point intraday trading strategy in sell condition when a 15-minute first candle closes Below the support 1(S1).

Pivot point intraday trading strategy- Capital Acquire
PIVOT POINT SELL CONDITION

Advantage of Pivot point intraday trading strategy

1.Easy and simple intraday trading strategy.
2.Full day trade with this strategy and exit at the closing of the market.
3. Some time big profits happen.

The disadvantage of Pivot point intraday trading strategy

1. Some time market falls from high and closes near low.
2.its works only 70% of cases.