Big and clear moves in mcx or stock mkt are rare.
In fact mkt is range bound for 70% time.
So for regular trading, we need to take 0.25% margin from total5% range.
But first condition for such trading is low brokerage rate.
If you are taking just 0.25% margin then your brokerage should not be more than 10 paisa at any cost.
and it is quite possilble,If you don’t have such broker, we can suggest you one.
Your trading cost is the first step for a trader to work out.Unfortunately traders,who are not able to earn 1 lac a year pay 2 lac pa brokerage unknowingly.
Now keep a chart on screen and just look at it only.
after pressing ctrl+i, you get a online chart in odin, double click to enlarge it.
Your tipper gave you the direction,you keep it in mind.say the call you got is– buy silver 56400 sl 56000 tgt 56900
then if silver takes a dip to 56120.
you just buy 2 more lots with same sl . risk will be -1200.affordable for a silver trader.
sell it @56250-300.
In opposit case,If it hit targets 56900, sell it with 57050 (risk-1500)
buy it @ first dip 56700.
Risk should be taken where it is most reasonable. buy near supports & sell near resistance with strict stoploss.
Maximum commodities show a range bound movements from 10am to 6pm. they show big moves generally after 7.30pm.
So active traders & specially brokers need to practice momentum trading.
IT IS MOST IMPORATNT TO LEARN TO STOP TRADING AFTER PROFIT/LOSS TARGET.
IMM INSTITUTE OF MONEY MGMT