Monday, May 8, 2023

First Day in Commodities!

I explored the commodities market, it has a lot of varieties too. You got gold, silver, crude oil, natural gas, and agri products. I have been studying moving averages and found that the 5 EMA (Exponential Moving Average) & the 20 EMA, have usually shown good crossovers for entries and exits. Another thing I saw in the commodities market is that prices largely follow a particular trend rather than being too volatile. I'm unsure if it is the daily scenario in the market or just a special day. Although there was news floating around on ET, that US recession fears around the world are fading due to which crude oil prices are going up. It mentioned, that in the previous three weeks, the prices fell as a result of the fear.

As I write this article, I see crude oil prices falling. One reason to be happy about this is that I do not have any open positions right now. I took two trades during the daytime, which fetched me a gross profit of 14.18% return on capital (i.e. ₹ 5500), including the charges (IC). Honestly, it really hurts to pay such huge amounts of brokerages, Rs 20 per order piles up to become monstrous amounts!

Another trade that I took was longing on NIFTY50. I earned around Rs 663 in that trade, ~ 6.89%. Overall, the sum total rough amount earned today was around Rs 1443 IC. 

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