Oil trading is often considered as an advanced form of the investment business. To rookies in Hong Kong trading, the energy field is more like taking the trades in the most complicated markets. But there are few amazing things which you can do to trade crude oil like a professional trader. You don’t have to become a technical or fundamental guru to become successful in trading. With the help of some special tools, you can develop your trading skills and become a top trader in the world. Let’s find out the details of this market and learn the key rules for trading crude oil.
Taking trades with the trend
Being a currency trader, you should take the trades with the trend only. Breaking the rules and trying to take the trades in crude oil against the trend is going to put you in great danger. The majority of the traders blow up the trading account since they don’t know the importance of the trend trading method. You must identify the trend in crude oil and take the trades in the direction of the trend. Some of you might say, the trend in crude oil is not prominent. It might happen that the market is in ranging movement. You must analyze the ranging movement data and wait for the trending movement of the asset. Once you become good at analyzing the trend, you will be able to improve your trading skills with a high level of accuracy.
Analyze the U.S dollar index
You must analyze the U.S dollar index to become a professional oil trader. As the price of crude is valued in dollars, a slight change in the U.S dollar index can result in heavy loss. Take a look at the professional analysis of skilled trades. Look at this site to read the latest analysis from the analyst of Saxo and you will realize how they relate the U. S dollar index to the price of oil. By analyzing this critical data, you can know whether the price is most likely to go up or down. Many traders often use the technical data to trade crude oil as the think relating to the U.S dollar index is a bit more advanced. Without using the advanced stuff you should not expect to become a skilled trader.
Use the Japanese candlestick pattern
Using the Japanese candlestick pattern to execute the trade is the most effective way to make a profit from this market. If you find a reliable pattern at the critical support or the resistance level you can take some of the best trades in the market. When you analyze the market data, be careful about the trade election process and selection of the time chart. You can’t make some serious improvement to your trading method by using the reliable candlestick pattern. Japanese candlestick pattern tells a lot about the market dynamics. If you can use it at the key support and resistance level, trading the crude oil is not going to be tough. Those who are having trouble memorizing the candlestick pattern can learn things by knowing the anatomy of the candlesticks. It can simplify the process of memorizing the complicated price pattern.
Use of the advance risk management policy
You must take trades with low risk or else it will be very hard to make a profit from this market. The majority of retail traders are losing money since they don’t know how to take the trades by lowering down the risk. But if you look at the top traders at Saxo, you will be surprised to see their strong risk management abilities. They never take too much risk in each trade since they know the perfect way to reduce the risk exposure at trading. Take less than a 2% risk and you can expect to be safe.