Well, today in this video you will get to know the secrets that will help you perform better in the commodity market. If you want to become a profitable trader, if you want to increase your profits, then there are some secrets that you need to know. And those secrets are going to be told by only and only Mr. Amit Jain. So Mr. Amit Jain is a semi-registered professional and with his experience, he will guide you and tell you all the secrets step by step. Sir, let’s start. Many people will be curious to know. Please keep in mind that they are new to the commodity market. So both the people, whether they are professionals or beginners, should get value from this video. In the first video, we understood the basics of what time the market opens, on which platform the trade takes place, on which script the trade takes place, what are its options, what kind of volatility is there, how much money is made in a rupee move. We discussed all these things. But before moving forward, I would like to tell you my story. When I entered this market in 2004, my first deal was done on this exchange.
I used to deal in soyabean, which is an agricultural commodity.
I used to deal in refined soya.
Someone told me to buy at a certain rate.
One or two deals went well, three or four deals went well.
But I got stuck in one deal.
When I got stuck in a deal, the other person stopped picking up my phone.
Now I was completely paralysed.
Neither do I know the stop loss nor do I know the target.
The other person is not picking up the phone.
If I call him ten times, he picks up the phone once or twice and says I will call back.
He stopped picking up the phone.
All the money that I had made in that deal or all the capital that I had invested in 2004 and 2005, all went to zero.
That day I swore that I would not call anyone and ask.
And that day and today I have never called anyone and asked.
I am trying to learn.
It was too late.
You guys have a lot of resources to learn quickly.
There are a lot of platforms, you can also see the charts.
Actually, at that time to learn the charts, all this was not available to us for free.
So, I used to give around ₹10,000 every month to see the chart platforms.
So, at that time, at that time and today, when I realized that difficulty, I thought why not help my people.
So that no one has to call someone else.
So, I try to give everything here so that you guys become self-traders, good investors and good traders.
Psychological build-up.
I come back to my topic.
I will take 2-4 minutes here and try to tell you what are the advantages and disadvantages of working in the commodity market.
The best thing I find is that the market fluctuations start around 6 o’clock.
That is, after that the US market opens. There is good volatility for 3-4 hours from the time the US market opens to our closing. So see, when the market opens at 9 am, the volatility remains low till about 6 am. They remain completely range bound. And after 6 pm the US market opens and the data is released around 7 pm. As I told you in the previous video, from November to the end of March the market remains closed till 11.55 pm. So the schedule of the data also keeps changing a bit. In the first 6 months, the data that comes around 6 pm goes in the range of 7-7.5-8. So after 6 pm the volatility starts getting triggered a bit. I will explain this to you later. So I was saying that the advantage is that those who are not able to participate in the market till 6 pm, they can come and work in the commodity market after 6 pm. They can work and take advantage of the market. That is, those who are left there can work here and make their strategy. Do you mean equity market?
Commodity market, yes.
People who are not able to work in NSE due to their job, schedule is busy, meetings are going on, they are busy in traveling, so they participate here after 6 o’clock.
The market is open till 11.30-12 o’clock.
And the second advantage that I would like to tell here is that all options are traded here.
As we told in the previous video, crude oil options are traded, natural gas options are traded, gold and silver are also traded, but there is less liquidity in gold.
So the second advantage I think is that those who have less money, like you have to manage with Rs 10,000-20,000, then there can be good trading of options in the margin of Rs 10,000-15,000 of crude.
But here I would like to say one thing that if you are trading options in commodities, then try to keep it completely intraday. And if you are a seller, then you can hold it because you can also enjoy time decay. So options are also traded and you can work here in a margin of Rs 10,000-15,000. So the third advantage of the commodity market is that the global market can also be analyzed from here. Actually I think that all markets are interconnected. I will also try to show you through a chart how many incidents we have seen in the past days, what kind of incidents have happened.