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Below are some popular oil trading strategies used by experienced investors to point you in the right direction.
Oil strategy 1: Use support levels
Support levels show traders the "key price levels" of the asset in question. In this case, the goal is to illustrate resistance . Support levels at Exness mt5 downloadin the oil market. Support levels are a very useful tool when it comes to oil trading, as they give you valuable insight into potential oil trading opportunities. For example, if oil is in the middle of a downtrend, you can a Stop Level. This will prevent the price of the asset from falling further. By entering the market above the support line while taking action a stop loss order below the support line - you can mitigate your risk to some extent.
Oil strategy 2: Oil scalping
If you are looking for small gains on a regular basis, oil scalping may be for you. This involves opening multiple buy . sell orders on a single trading day - meaning you can make the most of this volatile market.
The way this works is that you will try to take advantage of periods when oil is trading within a narrow price range. For example, let's say that oil has been trading between $35 and $38 per barrel for several days. Such a small consolidation range allows experienced scalping traders to take frequent long and short positions between the two prices. This particular oil trading strategy is relatively low risk. After all, the trader knows that at some point the price will rise by $38 or less than $35. To counter this, they have a stop loss order at both ends of the range. Until then, the oil trader can capitalize as long as the range is maintained!
Oil strategy 3: Oil swing trading
The idea of oil swing trading is to follow the broader market trend using various forms of technical analysis. The goal of oil swing trading is to try to take advantage of it Buy orders when the momentum of oil gets strong - which allows you to make those profits. With this in mind, swing traders might keep their positions open for a few days to weeks. If it turns out that the trend is reversed, an experienced swing trader will do two things. First, they will exit their position to ensure that they are able to take profits that were made with the trend in question.
Then, the trader will likely place another buy or sell order to capture the new trend. Again, the trade remains open for days, weeks and or a few months. The key point is that they try to stay with broader market trends instead of catching super short-term fluctuations.
Commissions
No two online brokerage firms are the same. So when you're looking for the right platform for your trading needs, you need to consider more than just market access. Commissions and fees can significantly cut into your profits if you choose the wrong trading platform. Some oil brokers charge more than $10 USD for each trade transaction. While this is ideal for those who trade large volumes, it is not if you want to access the market with smaller stakes.
With that being said, you will generally find that oil trading brokers charge commissions in the form of percentages. In this case, if your broker charges a 1% commission and you bet 1,500 USD, you will have to pay your broker 15 USD. You can breathe a sigh of relief now - the best oil brokers we discuss on this page offer commission-free trading via CFDs to clients.
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