Four amazing ways steps to trade the crude oil
Oil trading has always been a challenging task for rookies. Traders in Singapore start their careers in the currency trading industry. They try to earn money by taking the trades in the major currency pairs. Soon they realize, trading crude oil is much more fun and gives more profit-taking opportunities. Exploring the details of the oil industry is not that simple. You have to carefully analyze the market dynamics and take the trade with discipline. Taking too much risk and trying to earn in millions is not going to work. You have some key steps followed by the top traders.
Supply and demand
You must know the role of supply and demand in crude oil. If the supply is plentiful, the demand is most likely to fall which eventually results in a sharp drop in the price. On the other hand, when the supply is lacking, the oil-producing companies are going to increase the price to cope up with the demand. Such a unique method is the only way by which you can take the trade and make some serious profit from this market. Supply and demand can be considered as the most important information since it will help you to find the exact buying and selling point for the instrument. Once you take trades based on supply and demand, you will be able to make a big profit.
Learning the price action pattern
You must learn the trade with the price action pattern since it is one of the most effective ways to make big profits from this market. Ignoring the price action pattern and trying to earn a huge profit is never going to work. Being a professional price action trader, you should also find a good broker. Find more info about the top brokers like Saxo and start taking the trades with them. With the help of their amazing trading platform, you can analyze the critical market data and make some big profit.
So, how do we learn price action trading? You have to know the impact of different patterns at the position of the chart. Memorizing the candlestick pattern is not going to work. For instance, think about the pin bar. In the case of the bullish pin bar, the long wick suggests a strong rejection of the support level. So, the chances are high the price will go up. You have to know the story of each candlestick pattern to become good at trading.
Learning the impact of major news
You need to be careful about the major news while trading crude oil. Think about the major announcement by OPEC. If the OPEC cut the production, it will bring stability to the energy field and the supply will be limited. So, the price of oil will start rising higher. Just like, you have to know the impact of different news on the oil market. By doing so, you will get the unique ability to learn more about this market. But never become crazy about the news. It not that hard to understanding. By sticking the high impact news, you can secure some of the best trades in the market. Follow the protocol and you will be able to make some serious profit.
Forget about the losses
You must forget about the losses in trading crude oil. Those who are trying to avoid losses don’t know the market dynamics. Take managed loss so that you don’t become frustrated with the trading environment. The maximum risk you are allowed to take in each trade is 2% of your account balance. Breaking this rule and trying to earn more money from this market is a very big mistake. Follow the safety protocols and you will be able to make millions of dollars in profit. Last but not least, focus on your trading skills.