Professional Documents
Culture Documents
Jobbing Courseware
Jobbing Courseware
Jobbing Courseware
Commodity/ Currency Jobbing
By,
Comm
modity‐Guru Trrading SServicess,
Vitthal Niwass, 3rd floor,
610, V
Behind Sai Service P
Petrol Pump,
Decccan Gymkhan na, Pune,
Maharrashtra, Indiaa ‐ 411 004.
Web ‐: www.Comm
modity‐guru.com Email ‐: support@ @commodityy‐guru.com
Ph
h. 020‐2 553 4426.
Jobbin
ng
Jobbing is
s buying anda selling of a fin
nancial derivative (FFutures Contract off
Stockss/ Commod dities/ Currrency) wiithin quick
k time(within a minu ute)for a very
v small
profit...whatever the trade is You have to square s it off within
n a minutte..usually
y
jobbers do this kind of tra ade contin nuously throughout the day e earning a handsome e
profit at
a the end d of the daay..for thiss u have to
t take tra aining under some broker.You
b u
have to t be really fast in n order ex xecutions...these arre done under proffit sharingg
basis.. between n jobber and his broker..its s a high concentrration job only forr
youngs w 55 age..
sters below
Page 1 of
f 9
Written by Dr. Adwaait Deshpand
de, Commodity Guru Tradding Servicess, Pune. www
w.commoditty‐guru.com
Trading and Money Management Rules for Futures Traders
A survey by the John Walsh Agency asked more than a thousand experienced futures
brokers what rules they follow for successful futures trading. More than five thousand suggestions
were submitted. Here is a list of the futures trading rules they mentioned most often:
Don't be afraid to be a sheep.
1. Follow the trends. This is probably some of the hardest advice for a trader to follow because
the personality of the typical futures trader is not "one of the crowd." Futures traders (and
futures brokers) are highly individualistic; the markets seem to attract those who are. Very
simply, it takes a special kind of person, not "one of the crowd," to earn enough risk capital
to get involved in the futures markets. So the typical trader and the typical broker must
guard against their natural instincts to be highly individualistic, to buck the trend.
2. Know why you are trading the commodity markets. To relieve boredom? To hit it big? When
you can honestly answer this question, you may be on your way to successful futures
trading.
3. Use a trading system, any system, and stick to it.
4. Do not overtrade.
5. Take a position only when you know where your profit goal is and where you are going to
get out if the market goes against you.
6. Trade with the trends, rather than trying to pick tops and bottoms.
7. Don't just trade the volatile contracts.
8. Establish your trading plans before the market opening to eliminate emotional reactions.
Decide on entry points, exit points, and objectives. Subject your decisions to only minor
changes during the session. Profits are for those who act, not react. Don't change during the
session unless you have a very good reason.
9. Follow your plan. Once a position is established and stops are selected, do not get out unless
the stop is reached or the fundamental reason for taking the position changes.
10. Use technical signals (charts) to maintain discipline ‐ the vast majority of traders are not
emotionally equipped to stay disciplined without some technical tools.
Page 2 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com
Use discipline to eliminate impulse trading.
11. Have a disciplined, detailed trading plan for each trade; i.e., entry, objective, exit, with no
changes unless hard data changes. Disciplined money management means intelligent
trading allocation and risk management. The overall objective is end‐of‐year bottom line,
not each individual trade.
12. When you have a successful trade, fight the natural tendency to give some of it back.
Learn to trade from the short side.
13. Most people would rather own something (go long) than owe something (go short). Markets
can (and should) also be traded from the short side.
15. Recognize that fear, greed, ignorance, generosity, stupidity, impatience, self‐delusion, etc.
can cost you a lot more money than the market’s going against you, and that there is no
fundamental method to recognize these factors.
Standing aside is a position. Patience is important.
16. Standing aside is a position.
17. When you go stale, get out of the markets for a while. Trading futures is demanding, and can
be draining ‐ especially when you're losing. Step back; get away from it all to recharge your
batteries.
Thrill seekers usually lose.
18. If you're in futures simply for the thrill of gambling, you'll probably lose, because chances
are the money does not mean as much to you as the excitement. Just knowing this about
yourself may cause you to be more prudent, which could improve your trading record. Have
a business‐like approach to the markets. Anyone who is inclined to speculate in futures
should look at speculation as a business, and treat it as such. Do not regard it as a pure
gamble, as so many people do. If speculation is a business, anyone in that business should
learn and understand it to the best of his/her ability.
Page 3 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com
19. Beware of all tips and inside information. Wait for the market's action to tell you if the
information you've obtained is accurate, then take a position with the developing trend.
20. Don't trade unless you're well financed, so that market action, not financial condition,
dictates your entry and exit from the market. If you don't start with enough money, you may
not be able to hang in there if the market temporarily turns against you.
21. Be more careful if you're extra smart. Smart people very often put on a position a little too
early. They see the potential for a price movement before it becomes actual. They become
worn out or "tapped out" and aren't around when a big move finally gets underway. They
were too busy trading to make money.
Never add to a losing position.
22. Stay out of trouble, your first loss is your smallest loss.
23. Analyze your losses. Learn from your losses. They're expensive lessons; you paid for them.
Most traders don't learn from their mistakes because they don't like to think about them.
24. Survive! In futures trading, the ones who stay around long enough to be there when those
"big moves" come along are often successful.
25. If you're just getting into the markets, be a small trader for at least a year, then analyze your
good trades and your bad ones. You can really learn more from your bad ones.
26. Carry a notebook with you, and jot down interesting market information. Write down the
market openings, price ranges, your fills, stop orders, and your own personal observations.
Re‐read your notes from time to time; use them to help analyze your performance.
27. "Rome was not built in a day,” and no real movement of importance takes place in one day.
A speculator should have enough excess margin in his account to provide staying power so
he can participate in big moves.
28. Take windfall profits (profits that have no sound reasons for occurring).
29. Periodically redefine the kind of capital you have in the markets. If your personal financial
situation changes and the risk capital becomes necessary capital, don't wait for "just one
more day" or "one more price tick”; get out right away. If you don't, you'll most likely start
trading with your heart instead of your head, and then you'll surely lose.
30. Don't use the markets to feed your need for excitement.
Page 4 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com
31. Market repeats specific patterns. So first observe the patterns and then trade according to
your plan.
32. Always use stop orders, always...always...always.
Page 5 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com
Jobbing is a work of making small trades. Jobbers never take a big risk. Hence jobbing
should be done only in the scrips which are not too volatile.
We recommend jobbing to be done in ‐: Crude, Copper, Gold, Lead, Zinc, U.S. Dollar,
Euro.
Commodities like silver are too volatile hence jobbing is not recommended in silver.
Risk management Rules for jobbing in different scrips
The following risk management/ Trading rules apply in all styles of jobbing. ‐:
1. Crude ‐:
Profit Target : 2 to 6 rupees.
Loss : Should not be greater than 6 points.
2. Copper‐:
Profit Target: 20‐60 paisa.
Loss : Should not be greater than 60 paisa.
3. Gold‐:
Profit Target : 6‐12 rupees.
Loss : Should not be greater than 15 rupess.
4. Lead‐:
Profit Target : 10‐30 paisa.
Loss : Should not be greater than 35 paisa.
5. Zinc‐:
Profit Target : 10‐30 paisa.
Loss : Should not be greater than 35 paisa.
6. U.S.Dollar ‐:
Profit Target : 1‐3 paisa.
Loss : Should not be greater than 3 paisa.
7. Euro ‐:
Profit Target : 1‐3 paisa.
Loss : Should not be greater than 3 paisa.
Never take a position at the same entry point more than 2 times.
Page 6 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com
Jobbing Styles
There are different ways to do Jobbing. Here we will see the most famous styles in brief ‐:
1. Benchmark Jobbing
2. Screen Reading
3. Technical Jobbing.
1. Benchmark Jobbing :
This Style of Jobbing is adopted normally by experienced Jobbers.
As we know that commodity market is an international market. Hence the prices in
all the commodity exchanges follow the same trend. So if the prices of any commodity (only
international commodities that we have seen above) are rising in one exchange, then the
prices in all the other exchanges also rise at the same time. Also if the prices are falling in
one exchange, then they fall in all the exchanges in the world.
The Exchange, which trades the highest volumes in a perticular commodity becomes
the price setter for that perticular commodity.
All other exchanges throughout the world follow the trend developed at the price
setter exchange. This price setter exchange is also called as benchmark for the other
exchanges.
In Benchmark Jobbing, a jobber sees the live prices of the benchmark contract and
follows the same action in the domestic contract. If a benchmark contract gives 5‐10 ticks in
any one direction, then domestic contract is also expected to give at least 4‐5 ticks in the
same direction within few seconds. To use this strategy, a jobber should have the access to
live prices (bid/ ask prices) of the benchmark contracts.
Some common benchmark exchanges are :
NYMEX (USA): for Energy products like crude oil, natural gas.
COMEX (USA): for Precious metals like gold, silver, platinum.
LME (London, UK): for Base metals like Copper, Lead, zinc, nickel.
There are differt service providers, who offer the live quots of these exchanges in return of a small
fees. At some service providers, you can get these quots free of cost also (with slight delayed quots).
Some of these service providers are ‐:
Paid subscriptions :
a. www.tickerplant.co.in
b. www.esignal.co.in
c. www.mdp.com
Free Subscriptions:
a. www.gcitrading.com b. www.igmarkets.co.uk www.netdania.com
Page 7 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com
2. Screen Reading Jobbing:
In this style, there are no benchmark contracts watched. Here, the jobber only observes the
price movements of the domestic contract and tries to predict the next move of the contract
to make jobbing profits.
Some of the commonly used Screen Reading Techniques are as follows ‐:
a. (For Crude) : Crude oil reverses at most of the round figure prices like 4500, 4510,
4520, 4530 etc. So when crude price is 4506, a jobber puts a sell order at 4510 and as it
gets executed, he immediately puts buy order at 4508‐4506. And if the price goes 4‐5
points up, then he averages the position for more profit but with strict stop loss for both
positions above 4516. Similarly a buy order is kept at 4500 with average (if needed) at
4496 for a target of 4502‐4504 with strict stop loss below 4494.
b. (For Crude) : Crude Oil Reverses at 100 points or 110 points movements. A jobber takes
position at 100 points or 110 points movement for jobbing profit.
c. (For Gold) : Gold Reverses at 100 points, 200 points, 300 points movements. A jobber
can take positions at these movements for jobbing profits.
d. (For Copper) : Copper Reverses at 7 rupees, 10 rupees or 12 rupees movements. A
jobber can take positions at these movements for jobbing profits.
e. If any commodity moves by 4‐5 ticks continuously in one direction, then it is likely to
move further in the same direction. A jobber can take positions at these movements for
jobbing profits.
f. (For Lead, Zinc) : Lead, Zinc reverse at 2 rupees, 2.5 rupees movements. A jobber can
take positions at these movements for jobbing profits.
g. (For US Dollar/ Euro) : USD, EUR reveres at 10 paisa, 30 paisa movements, 60 paisa
(only for EUR) . A jobber can take positions at these movements for jobbing profits.
h. If suddenly no of buyers/ sellers start increasing or decreasing for a perticular
commodity, it is a indication of trend reversal. A jobber can take positions at these
movements for jobbing profits.
i. If a commodity makes a price jump in upward or downward direction, it is probably to
continue moving in the same direction. After such a jump, normally the price will come
slightly reverse. A jobber can take positions in the direction of jump for jobbing profits.
3. Technical Jobbing :
Technical Jobbing is the most easy way of jobbing. Here a jobber uses some technical
indicators to predict the next move of the market. It is easy as there is no need of special
skills to do jobbing. Only observe the indicators and whenever a signal is generated, A
jobber can take positions for jobbing profits.
Some famous technical indicators are :
a. Pivot Points : Pivot Points are the most famous of all the indicators. Usually market
reverses at each pivot point (Support/ Resistances). A jobber can take positions at these
movements for jobbing profits. Normally there are 7 pivot points for a day. Pivot Points
can be calculated by Pivot point calculator softwares or your broker will provide them
to you.
b. Moving Averages : Moving averages are also very safe for jobbing. Normally 5 SMA, 10
SMA, 20 SMA on daily charts are used for Jobbing. Moving averages also work like pivots
or support/ resistances for jobbers. Moving averages are available on charting
softwares or your broker can provide it to you.
Page 8 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com
c. Bollinger Bands : Bollinger Bands provide a normal trading range for the market. If
the market is trading Between Upper Bollinger band and lower Bollinger Band, then it is
considered to be a normal market. Bollinger bands also serves as resistance and support
levels. A jobber can take positions at these Levels for jobbing profits. Bollinger Bands
are available on daily charts or your broker will provide it to you.
d. ATP (Average Trading Price) : when a market completes the movement, it has a
tendancy to return to the ATP. ATP can be seen easily by pressing F6 key on the key
board for a perticular commodity. If market is coming from downside to ATP, a jobber
can sell there and if market is coming from upside to ATP a jobber can buy there for
Jobbing Profit.
e. ATR (Average True Range) : ATR gives us the maximum expected movement for a
perticular day. After the ATR Movement is complete, the market will reverse from that
point. A jobber can take positions at these movements for jobbing profits.
f. Super Trend : Super Trend is again a wonderful jobbing indicator that predicts the
next move for market. A Jobber can take positions as soon as a Super Trend is formed,
for jobbing Profits. Super Trend indicator is available only in few charting softwares.
Your Broker can assist you in this.
So by now we have seen some of the most famous technical indicators used for Jobbing.
If used with good descipline, a Jobber will be able to make descent profits for sure..
Wishing you a Very Best of Luck for your Jobbing success!!!
Dr. Adwait Deshpande.
(Jobbing Advisor)
Page 9 of 9
Written by Dr. Adwait Deshpande, Commodity Guru Trading Services, Pune. www.commodity‐guru.com