The Benefits Of Trading Crude Oil Vs Forex
Ever wondered who trades Oil Futures? The term Black Gold
and Texas Tea is commonly used to describe this hot
commodity. The worldwide demand for oil is rising for
several reasons, including the adaptation of cars in China,
which shows no signs of slowing down over the next several
decades.
Droves of traders play the Oil Futures market in hopes of
earning handsome returns. Some do well if they know a thing
or two and some don't. Beleive it or not oil can be pretty
predictable and once you have a winning system in place can
earn you large profits every morning. Just scalping a few
pennies 3-7 times every maorning can earn a trader $1,000's
depending on the size of there account.
On an average day it is fair to see over 250,000 contract's
exchanged by the closing at 5:15 eastern. Typically, the
majority of these contract's are exchanged between the
hour's of 8:00 A.M.-11:00 A.M. & 1:00 P.M. & 2:00 P.M
Eastern time. This is what I like to call "Rush Hour". You
can expect the largest volume being exchanged during these
time frames which in return you can earn the largest
profits.
If you want to participate, you will need to open a
brokerage account that will execute your trades via a
clearing house. This may sound a little complicated but it's
not. One thing you do need to know is 95% of brokerage firms
require a credit check. The reason they do this is to insure
themselves in the event of a calamity, God forbid that
happens. However, if you are credit challanged there are a
handful of brokers that will allow you to open a new account
without a credit check. You just need to know who they are.
Brokers typically ask for a minimum deposit of $2,500 or
more. Once this is done your ready to trade tight? Wrong.
Lets talk about margins. They are typically $1,000 per
contract. This means with a $2.5k balance you can trade 2
contracts. Once you have an account the next thing you need
to do is get some charts and a game plan. I could go into
chart analysys for hours but I'll save that for another
time. The bottom line is have a game plan before you tried!
Trading Oil Futures can be very rewarding unlike any other
business opportunity. Earning 5% upwards of 50% on your
account is not unusual. There are two quality traits that I
feel you need to trade. The yare patience and discipline. if
you have the patience to what for the right set-up and the
discipline to follow a winning stratagy the odds are in your
favor every time.
Article Source: FxTradingStock.com
About the Author
Looking to find the best Oil Trading Room, then visit www.easytradesignals.webs.com to find the best advice on Oil Futures.
by: Damain Hileman
Total views: 22
Word Count: 490
Date: Sun, 23 Jan 2011
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