How to Trade Crude Oil - Forex Day Trading for Beginners
As with all markets, the prices of oil are dependant on supply and demand, if there is a large supply, the price moves downwards as competition for oil is low, and if there is a large demand, the price movements reflect that by rising as competition for oil is high.
Oil traders look carefully at these factors such as global supply and then take action based on their analysis. It's important to all trading that you keep on top of both your technical analysis and your fundamental analysis regardless of what you're trading. Your technical analysis may say it's a good time to buy or sell, but with one swift move from a fundamental event, all that analysis is thrown from the window as the market turns the opposite direction.
Trading is not a game, it is for serious people who have the will and drive to succeed.
If you wish to trade oil and believe you have a decent strategy that can apply to oil, be sure to test extensively on a demo account before trading live through exchanges such as the New York Mercantile Exchange (NYMEX), and be sure you understand the differences between Brent Crude, and West Texas Intermediate Crude such as sulfur content, etc.
There are other options outside the spot markets such as futures trading, where you can find crude oil futures contracts that have either a small number of barrels, all the way up to 1,000 barrel contracts and beyond. There are a number of options available if you wish to trade crude oil futures.
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