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HomeOilIs frying crude oil risky?

Is frying crude oil risky?

  1. Establish a risk control system and process: Investors’ own factors, such as operational risk, internal control risk, financial risk, etc., are often caused by imperfect personnel and system management. Establish a systematic risk control system and perfect management The process is of great significance for preventing human moral hazard and operational risk. How Southeast Oil Avoids Risks in Southeast Commodity Trading Center
  1. Choose the right price: Whether it is long or short, investors should try to enter the market near the long-term average comparable price, and do not chase. Each round of adjustments in precious metals is very large, and crude oil is more important than gold, so choosing the entry price and timing is very important.
  2. Choose the right channel: If you have a strong interest in trading, you can do the business opened by the bank, while the more secure investment channel is physical crude oil. Participate in leveraged trading as little as possible. If you catch up to the peak and encounter a pullback, leverage will make you lose a lot. Investors should still pay attention to screening various crude oil investment products. Be wary of products with particularly low thresholds and high leverage.
  3. Enforce investment discipline: Obeying discipline in crude oil investment is above all else. Investment discipline is the foundation of risk prevention and a prerequisite for all investment behaviors. Investors who are new to the market after formulating their investment plans, if they do not strictly implement the investment discipline, are just talking on paper and often pay a heavy price as a result. In crude oil investment, the elements that need to be clarified in investment discipline include: trading reasons, capital investment, stop loss and increase positions, sudden market changes, etc.
  4. Develop an investment plan: Investors who first enter the market must have a specific plan for their own trading direction, expected profit level, acceptable maximum loss, investment strategy, contract month selected for trading, total capital and investment ratio, etc. . Only by thinking and formulating an investment plan can we objectively and comprehensively analyze the complex factors affecting the crude oil market in advance, so as to manage our own funds, pursue maximum returns and control our own risk level during the transaction process.
  5. Diversified investment: Diversified investment is to diversify investment to achieve the purpose of increasing the success factor and reducing investment risk. To use the most commonly used investment motto, it is “don’t put all your eggs in one basket”. Crude oil investment should also be diversified, such as investing in physical crude oil, crude oil jewelry, or choosing some crude oil T+D products. Risks in the market are unpredictable. Even if the judgment is accurate, there can be mistakes. Diversifying risks can reduce risks to a certain extent.
  6. Maintain a good mentality: a good mentality is necessary to do anything, and crude oil investment requires a mature and stable investment mentality. The price of crude oil is closely related to some factors in the international market. In the process of analyzing market conditions, investors must comprehensively consider various factors in order to make correct decisions.