Number of hours extended for commodity derivative segment

SEBI, the capital and commodity market regulator has decided to increase the trading time in the commodity derivative segment only. The time is extended by an hour to spread the commodity derivatives market and also enhance the part-taking of stakeholders which includes foreign entities and farmer-producer organization.

SEBI

For agriculture and agri-processed commodities, the trading hours will be from 9 AM to 9 PM. And for non-agriculture commodities the trading hours will be from 9 AM to 11:55 PM.

SEBI cleared that it has decided to extend trade time and recognized stock exchanges are to adjust to set up their trading hours only for the commodity derivatives segment. It is on the condition that there shall be enough volume.

Increased hours are in line with the recommendations by Commodity Derivatives Advisory Committee. In the past for non-agriculture commodities SEBI had fixed time from 10:00 AM to 11:55 PM and for agriculture commodities, it was from 10:00 AM to 9:30 PM.

Furthermore, SEBI added that the extension of the trade time is subjected to clearing corporation and stock exchange. They will have to put in place adequate risk management system, enhance their surveillance system and provide an adequate infrastructure that will match the increased trading hours. The provisions of the issued circular will come into effect from 30 days of the circular publication. Exchanges and clearing corporation will have to make needed amendments to the rules and regulations. The stock exchanges are directed to bring this to the notice all the stock brokers.

According to few brokers, the move to increase time will, double the cost for broking firms as they will have to employ staff in two shifts.

Another point is permitting foreign entities directly to participate in the Indian physical commodity derivatives market. Even if they export or import available commodities to/from India.

It is observed that morning moves are usually between 1:00 PM to 1:55 PM and evening moves start from 5:30 PM to 6:30 PM. Between 6:30 to 7:00 PM there are sudden reversals. Profit booking time is 8:15 to 8:30 PM and by 8:55 PM is the final exit time.

Because of the high volume New York session is good for commodity trading activity. It matches with the IST of between 6:00 PM to 10:00 PM. According to IST London stock exchange timing is from 1:30 PM to 10:00 PM. Most of the important fundamental news and reports are released during this time.

Commodity trading is for people who have deep pockets and are experts in the field. It takes years of experience for new people to trade in commodities.

If you want any tip regarding which commodity to trade in do contact us and we will be glad to help you. You can grab our free trial offer too.

How to increase capital through stock market?

Investors and general people are always on an outlook for quick and easy money which leads to riches and happiness. It is embedded in human nature to be constantly in search of some hidden keys to a treasure or winning a lottery ticket.

money

To make their dreams come true people buy lottery tickets or put money in those stocks which give unexpected high returns. Even it is a luck game and everybody cannot be lucky all the time. Relying only on luck is a foolish or desperate investment strategy to follow. In search for the success people often overlook the most powerful tool available that is time and compounding interest. To amass significant asset one should invest (not save) regularly, take a calculated risk, do not take an unnecessary financial risk, and let your money work harder for you over a period of time.

Few stocks will give you good returns and a few may make a loss. Here are few tips that the investor can follow to make the balance in his favor.

Purpose and time of the investment

You should first set time and the purpose for which you are investing. Ask yourself, will you be investing for six months, a year, five years or more? Secondly, are you investing for retirement, children’s college fees, purchasing a new vehicle, purchasing a new home, or build wealth for beneficiaries?

The stock market is volatile and there is no certainty that you will get the money when you need it. There are chances that your capital may not be available when you need it exactly. Hence it is always better to invest surplus money in stocks.

The growth in your stock portfolio depends upon few factors which are interdependent on each other. The capital that you invest, earning on your invested capital and time period you stay invested for.

In the perfect condition, you should start investing as soon as possible, save much as you can and invest in those stocks which give consistent returns that match with your risk tolerance.

Avoid leverage

The brokerage house gives you margin money to complete your purchase which can be nearly 50 percent of the purchase value. It is the use of borrowed money to execute your stock market strategy. The borrowed money ‘levers’ the result of price movement. If say you deal with your own money, whatever the profit or loss is yours. In case you margin money your profit or loss can double or even triple. It is not advisable to use margin money if possible avoid stock purchase on margin money unless and until you are too sure of the price movement.

Diversify your stock

It is better to diversify your share purchase which reduces the risk. You can diversify on basis of large cap, mid cap, and small capitalization companies. You can diversify according to sectors like banking, pharma, IT, mining, FMCG, etc.

If you want any tips regarding which stocks to invest in and for how long should you hold you can contact us. We perform fundamental and technical analysis and look into other factors before giving you any tip. Better still take the opportunity of a free trial by filling out the form.

How to trade in BTST and STBT stocks?

BTST (Buy Today Sell Tomorrow) and STBT (Sell Today Buy Tomorrow) are the terms used in the share market. Traders are always on a lookout for opportunities to make more money in the market. The decision to sale/purchase the stock is driven by its fundamental and technical strength. The confidence of the trader also plays a crucial role in it.

BTST and STBT stocks

What is BTST?

It is a short-term opportunity wherein the trader purchases share today in cash or F&O segment and sell it the next day. The trader does not hold long positions. This BTST position is taken by a trader in those stocks which are expected to trade at a higher price tomorrow.

What is STBT?

It is also a short-term opportunity wherein the trader sells the stock today in an F&O segment and purchases back the next day. This is not possible in the equity segment of the stock market. This position is taken by the trader in those stocks which are expected to sell at a lower price tomorrow.

Difference between BTST/STBT and intraday trading

BTST/STBT is different from intraday trading. In BTST/STBT stocks are purchased/sold on one day and sold/purchased another day. In intraday stocks are purchased and sold on the same day.

How to trade in BTST and STBT?

The first and the foremost on sees is the break out in the direction either way during marketing hours. Say a share of a company is trading around 1000 during the day. In a day at around 3:00 pm, it rises suddenly to around 1020 which suggest a breakout in the price moving pattern the trader purchases share today and sell tomorrow at a higher price.

On the reverse, if the stock breakdown is in the downward direction that is from 1000 to 980 at 3:00 pm STBT position is taken by the trader in the F&O segment.

Risk traders take in BTST/STBT position

Everyone knows the stock market is a risky business and traders must be careful while taking BTST/STBT position. If the trader makes a wrong interpretation of the price movement the trader has to bear the loss. The market movements are highly unpredictable; it can move against expectation and will leave no option to book loss.

Trading tips and strategies

Strategies for BTST and STBT are highly attractive on returns but one must be careful while trading. It is advisable to have a stop loss in place. One must not trade in BTST and STBT when the stock market is very volatile or some major events are expected to happen overnight. Like RBI policy declaration, company results, change in government policy or rules, election results, etc. Trading is an art and requires skill and knowledge which is acquired with time. It is advised to invest your surplus money in the stock market so that in case anything goes wrong it will not affect your financial standing.

It is better to take tips from an experienced person or companies like Alliance Research to make good money and create wealth.

How to Gain More Profit From Intraday Trading?

Buying and selling of stocks within the same trading day is called intraday trading or day trading. Stocks are traded at stock exchange during trading hours which is predetermined by the exchange. In intraday trading stocks are bought or sold in huge numbers with only one intention, which is, booking profit within a day. Stocks that are purchased are not intended for investment, while the trader earns in anticipation of the stock indices to a move north before he offloads his stock.

Intraday Trading

Usually, the online account is used for purpose of intraday trading. In intraday trading, the trader has to specify that the order he/she is placing is for intraday trading. Since the orders are squared off before the end of the trading session it is called intraday trading.

A few points are discussed below that you should keep in mind while trading in intraday trading.

  1. Intraday trading is risky

Intraday trading is riskier than investing in the regular stock market as there is a time bounding that one has to sell before close whatever be the market condition that day. Beginners should understand the basic of intraday trading to avoid loss.  Intraday trading is better for experienced traders. Always remember to use the capital for trading which you can afford to lose or that you have as a surplus because in case of loss, you should not face financial difficulties. Intraday tips from Alliance Research will help you learn the art of trading faster.

  1. Using intraday indicators to gain more

One has to do a lot of research when it comes to booking profits in intraday trading and indicators help you out for the same. Intraday tips from the experienced traders come as a blessing in disguise. The indicators are the beneficial tool which should be used with a widespread and prevalent strategy so as to maximize returns.

  1. Risk management in intraday trading

Trading in the stock market has an inherent with risk which all intraday traders have to face. Daily volume of shares traded and price volatility are the additional factors that intraday traders have to face when they pick the stocks. It is advisable not to risk over two percent of their total capital on a single trade so as to manage risk appropriately.

  1. Using one-day interval charts

Daily charts are the charts used by most intraday traders. These charts depict price movements of a share of companies on a one-day interval. Reading charts is a popular technique that helps illustrate the price moments between the opening and closing of the daily trading session. There are various charts which help intraday traders like 2 minute, 5 minute, and 15 minute. These charts are candlestick or bar charts which represent the opening, closing, high and low for the given time interval. Along with this traded volume is also represented.

  1. Picking relevant stocks for intraday trading

Picking stocks for intraday and long-term are two different aspects and the intraday trader should know the difference. Many people are unable to make the profit because they do not select appropriate stock. Choosing the right stock, at right time and at the right price is an art that day trader learns through experience.

We provide tips for choosing the right stock, at the right time, for a right price for buying and/or selling. You can contact us or fill out our inquiry form and we will communicate with you.

MCX Trading – A Good Investment Option to Better Return

As BSE or NSE shares of the companies are traded similarly at MCX (Multi Commodity Exchange) or NCDEX (National Commodity and Derivative Exchange) commodities are traded. MCX was set up in Nov. 2003 under FMC which was merged with SEBI and now comes under the regulatory preview of SEBI.

mcx trading

One can start commodity trading with a low amount as INR 5000/-. Since you will be investing your time and capital it is better to start with around INR 50,000/- in your pocket. It is a sufficient amount for beginners to start trading. Before we move further let me tell you not to trade with borrowed money, trade with the surplus amount so that even if you lose it should not make any dent in your financial standing. Remember that your invested capital will be at risk and there is no guarantee that you will only profit from it.

Investing in commodities without understanding is a risk and a bad idea to lose hard earned money. So first understand what commodities are and how they work.

Commodities markets throughout the world are the foundation of the global trade system. Profits can be made if the trader has a good knowledge of the issues that drive commodity prices and understands the underlining facts how one should trade on it.

A commodity is a raw material or basic goods that individual or institution buy and sell. They are the foundation blocks for more complex goods or services.

A commodity trade takes place either in the spot market or futures market. As the name implies, in spot market trade is in exchange for cash or commodities and happens immediately. In futures, market trade is based on standardized contract. It is not necessary to accept deliveries of goods. Trade happens in electronically and contracts can be settled in cash.

Generally speaking, commodities can be divided into four categories and are further subdivided. The categories are agriculture, metals, energy and environmental.

Agriculture includes food crops (cotton, soya beans, corn, etc.), livestock (pork bellies, hog, cattle, etc.), and industrial crops (wool, lumber, rubber, etc.).

Metals include precious metals (gold, silver, platinum, etc.), base metals (iron, aluminum, copper, nickel, steel, lead, zinc, etc.)

Energy includes petroleum products (crude oil, heating oil etc.), natural gas, uranium, ethanol, electricity, etc.

Environmental includes renewable energy certificates, carbon emissions, mining, etc.

As with any other investment options, commodity market also carries risk. To reduce and spread risk it is better to invest in various commodities in the same category, that is diversification of your portfolio. If you get right guidance and accurate tips from the experienced analyst you are bound to gain. It should be noted that stock and commodity market function differently. In commodities, there is a lot which one buys, no such thing in the stock market.

It should be noted that MCX has higher volume compared to NCDEX. MCX specializes in precious metals; NCDEX specializes in agriculture and other categories. Online trading can be done on both the exchanges. Your trades can be accessed on laptop, computers, and smartphones. That is you can trade from anywhere, from home, office, during your journey or on a holiday. The transactions are seamless and the complete process of transfer of funds without any error and within a short duration.

To avail tips on commodity trading, you can contact us or fill out the online form…. Happy Trading…..