Hi Traders,
As our regular subscribers know we focus predominantly on Currency Trading. Today, however, I would like to share with you exactly how platinum premium traders approach in this Crude Oil Trading Blog.
Before getting into our live fx trading event I wanted to present exactly what is needed as a trader to be successfully trading Crude Oil.
What You need to know about Crude Oil to Day Trade Successfully
Crude Oil Prices
A couple of months ago the Oil prices were witnessing a rally. However, they’ve now reached a crossroad. After recording a three-year high figure of sixty-five dollars, the WTI futures prices dropped in the month of February to reach sixty dollars/barrel.
Since then it has recovered nearly seventy percent of the total value that was lost during the month. This recent price adjustment has forced the traders to wonder whether it’s temporary or the prices have actually touched the ceiling at sixty-five dollars per barrel.
The Real Scenario Behind Recovery
WTI futures recorded an average price of 42 dollars/barrel twelve months ahead of the OPEC as well as production deductions started in the month of November in 2016.
Later, in view of the false trader hopes that the oil industry would balance soon, the prices rose to over 50 dollars per barrel.
However, in the month of March in 2017, traders were concerned that the deductions won’t work and thus the prices dropped again in June.
It was around June that the inventories started dropping globally and the opportunities for economic development and growth also improved further. That’s precisely when the WTI futures rose to 66 dollars/barrel by the month of January in 2018.
What Should Crude Oil Traders Know?
If you’re a trader who’s looking to trade Crude Oil, then you must make note of a couple of important points. Firstly, the prices of Crude Oil keep fluctuating every single moment, since it’s traded publicly on different exchanges.
It must be noted that the Crude Oil prices are determined on the basis of global demand and supply as well as in accordance with the fundamental analysis of the commodity and the traders. When it comes to day trading, traders must focus on earning profits on the basis of the price fluctuations that happen on a daily basis.
Thus, traders should emphasize on speculating the short-term movements in the price. In order to day trade Crude Oil, traders must resort to a futures contract. This contract basically is an agreement for buying or selling Crude Oil, Gold or even Wheat in the future. As a result, a trader closes all the contracts every day and incurs loss or profit on every single transaction on the basis of the price difference between the selling and buying prices of the contract.
Trading Oil Future Contracts
Depending upon their preferences, traders can trade a wide variety of contracts and crude oil such as the Crude Oil Future Contract that represents as many as one thousand oil barrels and E-Mini Crude Oil Futures Contract that represents five hundred Oil barrels.
Hence, buying and selling of Futures Contract are all about keeping a track of the number of ticks the price moved away from their entry price.
This further helps the trader in determining his/her loss or profit for every single trade.
According to the experts at Platinum Academy, the prices of Crude Oil may go past 65 dollars/barrel. They further clarified that if producers expect the prices to rise further, then they should be careful regarding market and trader sentiments and beliefs.
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I hope you found this Crude Oil Trading Blog informative and it assists you in trading the market with confidence.
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Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Nisha Patel
Live from the Platinum Trading Floor.