GOLDM hedging ( Bullriding Story )
GOLDM hedging
(bullriding story)
There was a tight range since last 8 trading days.
many small stoplosses hit.
Number of stoplosses makes all trader hopeless,even amount is not so big.
Today we finally decided to focus on single commodity with hedging.
first of all
We bought aug 2goldm @26600 SL26565(35pt
sold sep 2goldm @26590 SL26620 (stoploss 30pt
it was -700 risk any side.
goldm jumped 30pt up & hit the SL . AT 11.05AM
It was the time to book profit in 1 aug BUY
and to sell 1 sep again with 30pt sl. means selling at 26630 sl26660.
But this movement was very fast.slow traders & traders over phone reacted when Aug goldm came down to 26580
near buying SL of 26565.
We told to sell sep goldm again with 40pt sl.
then GOLDM came down to 26550 .
This low was touched 2-3 times from 12.15pm to 1.55pm.
It hit sl of 26565 in aug buy.
Till this time
loss in 1 lot buy-350
Gain in 1lot sell +300
If you did not book profit in 1 buy lot
then SL-700 gain+350=-350/-
We decided to keep position both side till evening.
So bought GOLDM aug again @26560 sl26520.
finally it jumped @6 pm in evening to 26680,(+130PT
Now it was clearly more than 0.5% .
buyers were double.
2ND JUMP came between 5.55pm &6.05pm. It went to 26840.(+290PT
and came to 26680 after just 10minutes@6.15pm.
touched 26770 again after 1.30 hour@7.45pm.(+90PT
ON 8.15 pm,there was a big reversal.
goldm suddenly came down to 26400.
(NOTICE THIS FROM 7.55 TO 8.30 MKT IS TAKING BREATHER OR REVERSAL)
After booking a big profit,
if you expect further from there,
then open position with hedging only.
FINAL GAIN POSSIBLE WAS
3000+1500=4500/- IN 2 CHANCES of goldm only.
NICKELM, LEADM, NG also gave clear move in evening today.
ALL REVERSED from 7.55 to 8.15pm.
We said in earlier article that monday, tuesday are dull rangebound days
and wednesday, thursday shows clear big moves.(crude, Ng inventory respectively)
Friday is ok.