SILVER TRADING IN MCX
HOW TO TRADE IN SILVER?
SILVER IS WELL TRADED COMMODITY IN MCX.
THERE ARE LOTS OF 3 TYPES-
SILVERMICRO 1KG, SILVERMINI 5KG & SILVER 30KG.
GENARAL MOVEMENT FOR 15-16DAY -1 TO +1%
EXTREME MOVEMENT 4-5 DAYS -4 TO +4%
STOPLOSS RANGE 250 TO 750 PT
WHEN MKT OPENS, WATCH 4 MAIN THINGS-
COMDEX IS PLUS OR MINUS & GOING UP OR DOWN.
IS IT ABOVE OR BELOW WTD AVERAGE?
PREVIOUS 5 DAY MOVE OF SILVER (OHLC CHART)
NUMBER OF BUYERS OR SELLERS.
IF SILVER HAS SHOWN VERY BIG MOVEMENT IN 2-3 DAYS, THEN IT WILL REMAIN RANGEBOUND FOR NEXT 4-5DAYS.
THERE WAS 15% FALL IN SILVER IN SEP11 END,NOW IT IS MOVING BETWEEN 49 TO 54 SINCE 20 DAYS.
WHEN IT FELL FROM 62K TO 46K, THERE WAS NEWS SPREAD ALL OVER THAT IT WILL GO 35000.
VICEVERSA WHEN IT ROSE 75K, THERE WAS NEWS TO TOUCH 1 LAC HIGH.THAT WAS THE BIGGEST REASON FOR HUGE LOSS TO POSITIONAL TRADERS.
WHEN SILVER MAINTAINS ABOVE 1.5% & BUYERS ARE MORE, THEN IT WILL TRY TO GO UP.
JUST OPPOSITE WILL BE APPLIED IN MINUS MKT.
0.5% ,1.5% & 2.5% ARE IMPORTANT LEVELS FOR PROFIT BOOKING.
10.30 TO 1, 3 TO 5 & 8TO10PM ARE 3 SUITABLE SOLTS TO ENTER & CLOSE A TRADE.
AT 2 PM DATA COMES & SUDDEN REVERSAL POSSIBLE.6TO 8 GLOBAL MKT OPENING CREATES MORE VOLATILE SCENE.
KEEP BOOKING SMALL PROFITS 200 TO 500PT IN MINI VOLUMES.
BIG TGTS ACHIEVED AFTER 8PM IN EVENING,SO WE CAN GO FOR MULTIPLE LOTS THERE.
IF U ARE CAPABLE OF 5 KG,THEN IT IS GOOD TO BUY & SELL 5 MICRO.
SO THAT YOU CAN GET COST AVERAGING & PARTIAL PROFIT BOOKING.
BE FLEXIBLE IN VOLUMES,SOMETIMES GO FOR 2-3MICRO IN BAD MKT & SOMETIME GO FOR 2-3 MINI IN GOOD MKT.
100% SAFE IN EVEN LOWER CIRCUIT MCX MARKET