Every investment is a game of probability, and in the ever-changing market of crude oil, no one can guarantee that they will always be profitable and never make any mistakes. However, as an investor who speculates on crude oil , how to reduce mistakes and increase the profitability of speculating on crude oil is the most important question to consider on the trading road.
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So, in the process of speculating on crude oil, what mistakes do we need to avoid? The following are some points compiled by analysts from Elan Financial.
- Never set stop loss protection
Human cognition is limited, and the trend of crude oil prices in the international financial market has infinite possibilities. After making the current judgment, many investors are very confident in themselves, thinking that there is no need to set stop-loss protection, because they will definitely make a profit. However, the trend of the crude oil market is often affected by various factors and changes, and even if the general trend is correct, there may be shocks in the small range. If the market cannot return to the right track in a short time, how many investors will there be? Can funds be used to withstand this current loss?
In fact, for investors, even the most clever speculators of crude oil may make mistakes. Therefore, learning to correctly set stop losses can better protect funds and stay in the crude oil market for a longer period of time.
- Frequent transactions
For many novice investors, as long as there is a slight profit when opening a position to speculate in crude oil, they will choose to close the position immediately, but such an operation often makes novice investors make small losses and large losses. However, when the position is profitable, experienced investors usually choose to set a floating profit to increase the profit, and wait for the price to move in a favorable direction.
- Digging the bottom
In the trading market, there are many factors that affect the price of crude oil. The crude oil market often has short-term violent fluctuations under the influence of a certain event. Therefore, it is almost impossible for investors to accurately grasp every peak and minimum of crude oil price fluctuations. point. In this case, investors must not fall into a short-term dilemma and ignore the general trend of crude oil prices.
- Inappropriate selection of investment varieties
There are different varieties of crude oil investment, and investors can choose the appropriate investment varieties for trading according to their own personal characteristics. Only after fully understanding its own characteristics and the market rules of investment varieties, can better investment be made, and the profit rate can naturally be increased accordingly.
- Abuse of trading leverage
In the process of speculating on crude oil, we use the leveraged trading model to maximize the utilization of funds. For many investors, although leveraged trading provides convenience, they are often prone to abuse in use, sometimes using too high leverage, and sometimes using too low. And in many cases, regardless of the winning rate of the current transaction, the use of heavy positions and full positions will eventually lead to losses.
In speculating on crude oil , investors should try to avoid some wrong operations and reduce unnecessary losses, so as to stay in the crude oil trading market steadily and increase profitability.
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