How To Trade In Crude Oil Without Fearing Risks
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:
1. Brent Crude
2. West Texas Intermediate (Crude)
3. 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
1. 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.
2. 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.
3. 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.
4. 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:
1. Our prosperity rate has reliably remained around the 95% level.
2. We have curated an extensive arrangement of raw petroleum
exchanging guides for amateurs, intermediates, and surprisingly
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3. Give the correct direction to customers before the venture of a
sizeable capital.
4. We focus on a day by day acquiring of 30-50 focuses reliably.
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.
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