Crude oil trading has allowed earning profit in all markets due to its amazing standing within the world’s economic and political system. One can expect consistent short-term and long-term returns while investing in crude oil.
Some participants fail in taking full advantage and earning profit out of this investment, either because of market fluctuations or because of their less knowledge regarding the pitfalls where they can earn profits.
Crude oil is most actively traded in India with future contracts value in MCX daily. But, unfortunately, due to the involvement of high risks in supply and demand, many people fear investing in crude oil and fail to take the advantage of it.
In this article, Shyam Advisory will try to help you out in defeating your worries, by giving various crude oil trading tips but before that let’s learn some basics about it crude oil.
What is Crude Oil?
Crude oil is known as “Black Gold” and is a petroleum product that is refined to produce gasoline, heating oils, diesel, etc. Crude oil is an essential part of our lives as we directly or indirectly use it either through laptops, pcs, sports items, tea, or even machines.
48% of crude oil reserves are in the middle east. The World’s 40% of crude oil is controlled by OPEC. OPEC stands for the organization of petroleum exporting companies.
Crude oils are of three types:
- Brent Crude
- West Texas Intermediate (Crude)
- Dubai/Oman
What is Crude Oil Trading?
Crude oil trading involves buying and selling crude oil futures and options. It is actively traded on MCX and is all about short-term price and analyzing its real value of crude oil. It is highly volatile and keeps changing throughout time.
Few Crude Oil Trading Tips
- Buy and Hold Strategy:
This is the best and most simple trading strategy. The buy and hold strategy is mainly used by traders to analyze the demand and supply to get the calculated positions. If traders get the right predictions then they close the deal on profit before expiry.
- Technical Analysis:
In this strategy, traders take their decision of investing on various technical factors like charts, candlesticks, and volume of trading. These factors help traders to buy and sell crude oil according to future price movements. The traders need to know the right time to buy and sell crude oil and all the other elements affecting it like demand and supply and other geopolitical issues.
- Swing Strategy:
This strategy means keeping a hold on a commodity for a short period. Traders usually hold up the commodity for few days relying on short-term changes in demand and supply.
With this strategy traders, either buy futures contracts when the market is up and sell all of it when the market s down. Traders in this strategy aim at earning from small movements.
If the market showed any movement which was not expected then traders can face a huge loss.
- Spread Strategy:
In this strategy, a trader buys a futures contract of crude oil in one month and sells another futures contract another month to avoid the risk of buying and selling. The main aim of the trader in this strategy is to earn profit from the expected changes of both buying and selling of futures contracts.
Who We Are?
We don’t simply give exchanging tips, we endeavor to furnish you with just those raw petroleum exchanging techniques that will help you make the most out of your venture. Lion’s share merchants search for occasions and karma, acquiring a benefit on only a couple of exchanges over an extensive stretch. Anyway, our point is to make a manageable technique that can help you make high benefits reliably. Information and examination-based methodology can assist you with keeping away from the entanglements and dangers of a receptive one.
A couple of focuses that different us from some other assistance in the market are:
- Our prosperity rate has reliably remained around the 95% level.
- We have curated an extensive arrangement of raw petroleum exchanging guides for amateurs, intermediates, and surprisingly prepared merchants.
- Give the correct direction to customers before the venture of a sizeable capital.
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Shyam Advisory suggests that crude oil prices are volatile and any trader who is interested in this commodity future contract should have a solid strategy to trade. Crude oil trading is also affected by other geopolitical issues which can affect the prices.
To know more about the supply and demand of crude oil futures contracts or crude oil trading tips, stay connected with Shyam Advisory and get full knowledge of how to trade in crude oil without fearing risks.