Hello dear readers, this post is on secrets of crude oil trading which will help you make a strategy and prevent you from losses. Crude trading is bit different because it is volatile market and internationally traded, its fluctuation depends totally on supply and demand but it shows positive signs for technical trading for e.g showing support and resistance at 50, 100 and 200 EMA(exponential moving average) RSI , and stochastics. My fav. are Macd and Stochastics, i will not go in detail about technical trading here but some other time i would. Lets begin now 123……..go………
Crude oil trading secret #1—- Trading the prime time
Prime time is the time when crude oil actually shows trading and become volatile. For Indian prime time is 2:30PM;6:30PM;8:00PM(IST) and for international traders prime time is 9:00AM and 11:00AM EST. I prefer and suggest you to trade only these times.
Crude oil trading secret#2— Trading the Crude oil Inventory Report.
Inventory report is released every wednesday at 8pm IST and 10:30 am EST. Before you trade know that just before the report the market go in a range for trading you have to place your order 10points above and below that range because it just slips 10-15 points due to heavy trading and shows a gap. So place your limit order 10-15 points away from the range. Check for supply and demand figure on forexfactory.com.
Trading secret #3— Your size of tragets in trading.
Crude oil trading targets should be 50-60 points for indian traders i.e 500-600rs in INR 1 tick= 10rs in mini lot and 5000-6000rs in INR 1 Tick=100rs. For international traders 15-12pips 1 Tick=10$ i.e 150$-200$ profit.
Trading secret #4— Trade placement best practices
Ok, so now you know which Crude Oil futures contract to trade, what time to trade it, when to step aside and what type of targets to expect as a daytrader. Now know how to place your order wait for a setup and according to your strategy place only limit orders because it could target any amount according to your setup and no worry for slippage.
Trading secret #5— Getting out,in correctly
I mentioned earlier having great tools. Daytrading Crude Oil futures requires that you can quickly place your order. The market is not going to wait for you to fumble around on your keyboard and clicking your mouse a bunch of times. You need to be able to determine your Buy or Sell Stop Limit price and enter that trade in a click. I can place my trade including the entry stop limit, and my profit target and stop in one click in about one second. This is critical. There are a lot of solutions and brokers out there so I’m going to suggest one solution where you can achieve this but you’re free to look at others.
Just call me at +919760215083 or comment here.
Trading secret #6—- Trailing your trade for huge profits.
First, I’m going to tell you that I highly suggest in the beginning you do not trail your trades. I suggest using just a fixed profit target and exiting there. You need to build your confidence, you need build your account and using something somewhat subjective like Trailing is not going to provide you that certainty that a fixed target will provide. With that said, at some point you might want to consider trailing a portion of your trades (I would only typically do this if I was trading 2+ contracts – exiting some at a fixed target), suggestion is using hard stops.
At last i would suggest don’t be greedy and cover your profits.