Learn Oil Trading Basics of Trade Strategies

For traders wanting to use trading strategies to trade the crude oil market there are a few other basics which a trader should know that will help to make the strategy being used become more successful.

After a trader has learned about technical analysis of indicators & the analysis of oil charts, a trader will need to create a strategy. Strategy that a beginner uses can be based on the following most oftenly used trading strategies in Oil Trading.

A trader can learn about the basics of how to come up with a strategy by learning from the above example strategies.

Once a trader has come up with their oil trading strategy, they should also include the following in order to make their oil strategy more successful.

1.Oil Trading Money Management Rules

2.Oil Trading Psychology

Oil Trading Money Management Rules

Oil money management guide-lines should be part of your trading strategy - these rules will help you as a trader to manage risk. This means that you will use the two rules of oil trading money management - these are risk reward ratio and drawdown reducing method when placing your trades to determine lot size that you'll put in the crude oil market. The most popular oil money management rule use in crude oil trading and one that you should also add to your trading is the rule which says that a trader should never risk more than 2% of account equity on any one single oil trade.

To learn about these 2 oil money management guidelines traders should read the oil money management guide that's on the learn oil trading tutorials section of this website under the oil trading key concepts lessons.

Crude Oil Trading Psychology Mindset

In order to become successful when trading the crude oil market a trader has to learn about oil trading psychology. The oil trading psychology or mindset that's required to become successful in oil trading is one that avoids the emotions of fear & greed while trading and is a mindset of total discipline that the trader will follow all their rules & their oil trading strategy & only trade with trading signals that are generated by their strategy. With discipline a trader will not trade unless their oil system gives a trading signal. A trader will have the mindset of only following their trading system 100% all the time without second guessing the system. A disciplined trader will also not place trades in the crude oil market just because the crude oil market has started to move up or downward, instead a trader will wait for a signal to trade to be generated by their oil trading strategy.

In order to learn more about oil psychology and how to manage emotions while trading the crude oil market a trader can read the oil trading psychology guides from the learn oil trading tutorials section of this website under the oil key concepts courses.