How to analyse the trend of market movement?

Open interest Clearly indicates the trend

The simple analysis for newbies to find the trend by watching the open interest.

1. If open interest increases, and price increases- This is a strong Buy trend

2. If open interest increases, and price decreases- This is a strong Sell trend

3. If open interest decreases, and price increases- Weak Buy Trend

4. If open interest decreases, and price decrease- Weak Sell Trend

Every newbies are trading with some simple concept by seeing total buyers and total sellers., ratio

If the buyers are high, immediately they will buy the Script (Because Short covering order is also shown in the buyers list. then, how do you decide to go long?)

if the sellers are high, immediately they will sell the Script ( Because Profit booking order is also shown in the sellers list. then, how do you decide to go short?)

but there is no use of watching the total number of buyers and sellers quantity

So, If you are watching the total number of buyers and sellers, and decide to trade on that basis, you cannot always win in the trading. 

Golden Rules Commodity Trading Rules

Golden Rules on Commodity Trading

•  Book profit as price comes close to your target, don't wait for exact rate.
•  Taking quick action is the key of success in day trading.
•  Stop trading for the day, if already got good profit for the day, don't be over confident 
•  Don't trade in a particular scrip/index if you are not confident about the move. It's better not to trade  rather than trading wrong. 
•  Don't trade if risk reward ratio is not favorable.
•  Ready with your trading action plan in advance. Market timings are for action not for planning, one  miss can be a big opportunity loss/trading loss.
•  Move with the market & don’t expect the market to move with you.
•  Fear & Greed, both are psychological weakness, play with it and don’t get played by it.

•  Keep a stop loss or a close watch, if your trade move confirmed in negative direction, take exit immediately. 
•  Focus on trade, opportunity can come at any time, don't miss trading opportunity, even a small opportunity can pay you big.
•  Don't regret if you miss the opportunity, wait for the right one to enter.
• Trade patiently, quality of trade matters not the frequency/numbers.
•  Stop trading for the day,if your most of trades are resulting negative for you. Remember, everyday is not your day.
• Trade with your independent due diligence,learning & thoughts, don't get influenced.Trading on someone else tips is like crossing the road as a blind man.
• Believe in results, it is only the result that matters.
•  Don’t target the Market as you are always on the target of Market, play defensive & play safe.
•  The longer the duration your trade remains in negative direction, the higher is the risk in that trade. Good “Day Trades” turn into profits mostly in short duration.
• Market moves opposite to most of the signs which actually making clearly visible to all.   

Who can be a smart trader?

1. Why market always exist? But why does not trader always exist in the market?

Markets always exist at the same place.  Traders are continiously trading in market for 24 hours around the world.

2. But why does not trader always exist in the market?

Its because they loose money by different ways in trading

3. Who can be a smart trader?

Intraday Traders
Positional Traders
Scalpers.

4. Who takes money from trader?


Brokers, Taxes, Service Providers ( ISP, MSP, Signal sellers, Softwares etc ) , and other winners (less than 5 % of total trading population )

5. How much scope is there in the market for the winners?

Depends on liquidity, you can trade till there is liquidity crisis.

6. Why is market not able understand the pain of the small traders?

Market is neutral and common place, there is no room there for big or small in biased manners, say even banks or hedge funds can go bankrupt if they hold wrong side of market

Is any Easy Way to Make Money in Commodity?

Quick answer…there is no easy way to make money in commodity trading. Sorry about that. No get rich quick schemes. The fact is once in a while you hear of someone who made a killing in the commodity markets.

What is reality that even when you do make money in the commodity markets it is a challenge to keep it. A select few do keep it and even compound their money. These are commodity trading advisors who have a plan and follow it with absolute discipline.

Too many believe that they can watch Business TV Channels and be told where the markets will go. Looking for tips is the surest way to lose money! Once a trader realizes that no one knows the future they start to mature as a commodity trader.

Discipline, patience,humility,prudence,perseverance, good judgement, courage and self reliance are the traits that distinguish success. These are not easy traits to have. It is very easy to get disgusted and give up. You have to want it. You have to want to succeed and know you will be doing this for the next 30 to 50 years of your life. This is what it takes. There is NOTHING easy in commodity trading. Experience and time help build these qualities.

We have learned all along the way what it takes to be successful. It is hard work. This hard work must be done day in ..day out..and many days..months..or even longer periods of time we do not make money. Then all of a sudden we stumble into some major move in something and make up and profit largely.
This is commodity trading or more so Trend Following. This is how it works. If done correctly potentially on average over a long period of time you can possibly attain mid teen results compounded. This is the goal. There are years which are wonderful and then there are years like this one…lack luster. It is all part of it. Stay disciplined, focused and let the possibilities and time work in your favor.

How to earn 2.5 Lakhs on One Day by using 1 lakh Capital on Commodity Trading

Due to  record  low and Volatality of INR 
against USD..

Let Play the game on Crude Oil as per International Market behaviours..

Bought 4 lots Crude Oil @ 6861
Sold 4 lots Crude Oil @7461

 Net Profit Rs 600 X100 = Rs 60,000
For 4 lots 4 X 600 =Rs 2, 40,000.
Brokerage 4 X 400 = Rs 1600

Investment for 4 lots = 1 lakh

Net Profit = Rs 2, 38,400 on One Day Trading..

The Indian currency on Tuesday hit an all-time low closing the day at 66.24 against the dollar . Currency traders say that heavy dollar demand from importers and foreign institutional investors (FII) is one of the key reasons behind the rupee's free-fall. Pressure on emerging market currencies also weighted on the rupee today.

Types of Trading

Scalping - The scalper is an individual who makes dozens or hundreds of trades per day, trying to "scalp" a small profit from each trade by exploiting the bid-ask spread.

 Momentum Trading - Momentum traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit.

 Technical Trading - Technical traders are obsessed with charts and graphs, watching lines on stock or index graphs for signs of convergence or divergence that might indicate buy or sell signals.

Fundamental Trading - Fundamentalists trade companies based on fundamental analysis, which examines things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions.

Swing Trading - Swing traders are really fundamental traders who hold their positions longer than a single day. Most fundamentalists are actually swing traders since changes in corporate fundamentals generally require several days or even weeks to produce a price movement sufficient enough for the trader to claim a reasonable profit.

Rules to become successful trader

Never risk more than 10% of your trading capital in a single trade. 

Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.) 

Never do overtrading. 

Never let a profit run into a loss. 

Don't enter a trade if you are unsure of the trend. 

When in doubt, get out, and don't get in when in doubt. 

Never limit your orders. Trade at the markets. 

Extra monies from successful trades should be placed in a separate account. 

Never trade to scalp a profit. 

Never average a loss. 

Never get out of the market because you have lost patience, or get in because you are anxiously waiting. 

Avoid taking small profits and large losses. 

Never cancel a stop loss after you have placed it. 

Avoid getting in and out of the market too soon. 

Be willing to make money from both sides of the market. 

Never buy or sell just because the price is low or high. 

Never hedge a losing position. 

Never change your position without a good reason. 

Avoid trading after long periods of success or failure. 

Don't try to guess tops or bottoms. 

Don't follow a blind man's advice. 

Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake. 

When you lose don't blame it on luck.