Oil Trading

[Lee Mark]

Yes, now I use Oil and others commodities, basically I have increased my live trading instruments gradually, right now I am working with 18 trading pairs! But interesting point is, I started my trading by only EUR/USD and Gold metal! Whatever, CFDs, Commodities are not for the novice traders because of high volatility, need enough preparations!

 

[Tauf]

Trading oil tends to be influenced by the needs of the country and an inventory of oil-producing countries, but if we see in the chart technical analysis, then the oil will always be only useful to see the trend where oil moves

 

[lioneld]

I am very choosy about my trading instruments! Such as, I trade only 6 trading instruments, even I don’t use Gold and silver because of high volatility, on the other hand, I also avoid GBP/JPY trading pair because of the same reason.

 

[Tom Latham]

When I was a new Forex trader then I didn’t use commodities because of my low trading balance! Then I was active on the only Forex! By the way, now use Forex, Indices, and CFDs; I enjoy Indices and CFDs as well.

 

[Changer]

Commodity trading is super exciting. It's especially true about oil, but to trade this asset you need to master the fundamental analysis.

 

[Tom Latham]

You are right! Fundamental analysis s much important than technical in this case! This is why, which traders have good trading skill on the fundamental sector, they are making enough money by trading commodities.

 

[Svetlana Loboda]

I think you right if fiundamental analysis more imnportant than technical, because oil asn real commodity will move depending with demand and supply basically, but factor they cause of movement will also because fundamental, news

For Oil: no doubt fundamental analysis is more important than the technical analysis! That’s way, mostly expert traders use this commodity.

 

[lioneld]

For Oil: no doubt fundamental analysis is more important than the technical analysis! That’s way, mostly expert traders use this commodity.

Well, may I know your current opinion on this commodity? Thanks you very much.

 

[Oscar Shumack]

Oil trading is one of the most sought after commodity in the world other than Gold. I’m sure most of you already know why the price of oil will continue to rise in the future. As well as Gold, oil is a very rare commodity. But apparently that’s not the only factor that supports the continued rise in oil prices.
Here are some factors that can affect the movement of the price of Oil:

1. Peak Oil
The jump in world oil prices are supported by a popular theory called the theory of “Peak Oil”. This theory broadly states that world oil production will continue to increase so as to achieve the peak, and will decline with the speed increase on the previous production. Largest oil field in Saudi Arabia has been in declining production, as well as second in the Cantarell oil field located in Mexico.

2. Geopolitics
Political instability in the Middle East that occurred as in Libya, Egypt, Algeria, Yemen, Jordan and Bahrain recently supported to contribute in world oil prices skyrocketing today. Middle Eastern countries are known as a supplier of oil in the world, instability in the area feared would lead to oil supply shortage in the world market.

3. Speculation
Oil as a commodity also become the target of the trading market trader. In stock trading, oil is known by the name / symbol WTI Crude Oil traded through contracts (futures). Oil trading activity is very crowded on Wall Street. Allows traders to speculate to profit from volatility / fluctuation of oil price contracts stock market trading occurs.

4. Industrialization
China and India is a country that can be said to advance its economy rapidly. Both countries are in desperate need of oil as “fuel” for the passage of industrialization in the country. That China has defeated the United States as the largest consuming energy resources in the world. International Energy Agency stated that China consumed 2.5 trillion tons of oil in the year 2010.

5. Population
Egypt is just one example of the few countries in the world are experiencing a population explosion. Officials in Egypt might think that it’s easier to overthrow a dictator in Egypt rather than to feed the people of Egypt. Egypt’s population has increased by 3-fold in the past 50 years. Where the problem requires a very large supply of food, and therefore require oil as an energy source on the machines that manufacture food sources.

6. Factor Weather
World oil prices will tend to rise when the cold season. Where the population in European countries and America needs an energy source to turn their heating machines when when winter arrives.

7. Yet Availability of Renewable Energy Oil
Until now, oil is still the main source of energy used around the world. Although several countries have developed several alternative energy sources, but has not been able to show significant results. Nuclear energy is actually the most potential to replace oil, but the problem is still a bottleneck ecosystem heavy, especially after the tragedy of Chernobyl and Fukushima reactors. Oil crisis in the future is inevitable, and the countries of the world started racing to keep looking for alternative energy.

Source

Oil Trading

Very nicely explained. Very informative post. thank you for sharing.

 

[FXOpen Trader]

Very nicely explained. Very informative post. thank you for sharing.

When we are trading in the Oil we will have to understand the global demands and supply.

 

[Eduardo Lucchese]

Candle breakout strategy is a very common strategy to be used. Those who are technical analyzers understand this strategy very well.

 

[SaadBinToha]

Through following this approach, you can make profit temporarily but it won’t give you any knowledge and so ultimately you have nothing.

 

[Alexander Hudson]

To many traders, trading is a hobby. But in reality, Forex trading cannot be a hobby because you can compare it with an adventurous journey where people have fear.

 

[Gito Dinev]

Newbies should pass more time with the market to understand the market well so they can make a good strategy for them.