Day Trading Oil

[ozibattler]

Hi,
I've just decided to switch from Forex to Oil. Any comments!!
Cheers

 

[UKtradergirl]

Volatility. Watch out.

Big money to be made in oil. Big losses too.

Good luck

 

[Lee Shepherd]

Hi,
I've just decided to switch from Forex to Oil. Any comments!!
Cheers

I'm sticking with the majority here, so this may not apply to you:


Usually when people switch like this then ask questions its simply because they haven't made forex work for them and are not profitable, otherwise why switch and ask an extremely vague question?

If you haven't made the currency markets work for you, what makes you think commodities will be any different??

Learn a market, learn everything about it and keep chipping away. If account is bleeding beyond for what you wish, lower your lot size or go back to papertrading until you've found something that works for you.

It may be that switching is not the answer and will only harm your progress so far.

 

[fakhar]

Hi,
I've just decided to switch from Forex to Oil. Any comments!!
Cheers

switching from forex to futures is a good decision but dont try Oil first. its volatile. volatility gives you money quickly but takes from you more quickly.

 

[ozibattler]

Hi,
Thanks for the comments and advice. I'll take them all on board.
The reason I'm thinking of switching is that although I'm reasonably successful with forex I've had to ask myself "Is it actually Forex that holds my interest, or simply the desire to grow my account?
I know the answer to this!
Cheers

 

[UKtradergirl]

I'd choose profit over interest any day.

Good luck.

 

[porph]

start with small trades in crude. In fact, best to stick with them.

 

[shadowninja]

Why should oil be more interesting? It's all just numbers affected by economic news. You either find it all interesting or all boring.

That said, when I was trading gold last year, I did like making references to Goldmember for personal entertainment.

 

[si1503]

The simple answer to trading in more volatile markets is to reduce position sizes. Oil is volatile but as a daytrader of both oil and forex myself I wouldn't say it is much more volatile than forex, oil can swing 300-400 ticks in a day, so can currencies, especially in this environment! As with all markets movement depends on the trend stage of the market and sentiment. I find there is more noize and more resistance in forex markets, oil will tend to break through minor resistance (on 5-1hr charts) a lot of the time without much fight when it gets going, that aside it is like any other market, technicals and price action tend to work well which is why I like oil. Like others have said it can be a rewarding market if played correctly.

 

[ozibattler]

Hi,
We now know that greed is NOT good! (So they say)
But will somebody please explain to me why volatility is to be feared or in fact, bad?
Excuse my ignorance but isn't this where we make our money?
Cheers,

 

[shadowninja]

It's where newbies lose it.

 

[ozibattler]

The simple answer to trading in more volatile markets is to reduce position sizes. Oil is volatile but as a daytrader of both oil and forex myself I wouldn't say it is much more volatile than forex, oil can swing 300-400 ticks in a day, so can currencies, especially in this environment! As with all markets movement depends on the trend stage of the market and sentiment. I find there is more noize and more resistance in forex markets, oil will tend to break through minor resistance (on 5-1hr charts) a lot of the time without much fight when it gets going, that aside it is like any other market, technicals and price action tend to work well which is why I like oil. Like others have said it can be a rewarding market if played correctly.

Thank you for your response, this is the kind of feedback I appreciate.
Cheers

 

[new_trader]

Hi,
We now know that greed is NOT good! (So they say)
But will somebody please explain to me why volatility is to be feared or in fact, bad?
Excuse my ignorance but isn't this where we make our money?
Cheers,

Or even better, try and get someone to explain what 'volatility' is.

 

[rathcoole_exile]

you ever heard the old saying ? "if you can't trade, trade Corn"

 

[BigK]

What instruments are used to trade oil? I know CL (big) & QM (mini). Any other instruments (with smaller leverage)?