How to Learn Oil Trading Strategies

Once traders have completed learning about the basics of the crude oil market, this may include basic oil trading terms and basic crude oil trading concepts such as oil charts, exchange rate, oil trading quote, oil trading spreads, oil trading pips, crude oil trading leverage & margin traders should move to the next advanced step of learning about oil trading strategies. Learning and understanding oil trade strategies will require traders to take time to learn about trade strategies so that they can know about how they can come up with their own.

Traders can learn how to develop and come up with their own oil trading strategies by first of learning about the commonly used trading strategies in the crude oil market. After reading about the commonly used trading strategies in the traders can then come up with their own trade strategies as they will have learned the basics of how to come up with a trading strategy.

The most common trading strategies in the crude oil market are:

Once a trader learns the basics of how to recognize simple crude oil patterns and trade these crude oil chart patterns using trading strategies, the traders can formulate complex oil trading systems that they can use to trade the crude oil market. Oil traders can then use these strategies to identify entry and exit points when they want to open crude oil trades.

Traders must consider several factors before coming up with their strategy. Oil traders will have to determine the points at which they will be buying or selling. Oil traders will have to determine their take profit targets as well as their stop loss levels. Oil traders will also have to determine the oil trading money management guide-lines that they will use when trading with their oil trading strategy. For example a trader may choose to use the 2% oil trading money management rule which says that a trader should not risk more that 2% of their account equity on any one single oil trade. Trader can also use the high risk reward ratio oil trading money management rule, for example a trader using high risk reward ratio of 2:1 - means that if a trader sets their stops at 20 pips, then they will place their take profit level at double this amount, this means the trader will place their take-profit level at 40 pips.

After determining all these & selecting the trading strategy a trader will then write down their oil strategy & the rules of these trading strategy in order to come up with a complete crude oil trading system to trade oil with.