TIPS: MAXIMIZING PROFITS OF Oil Trading SYSTEMS

1. Define Simple Oil Rules and Follow the Trend

The simpler the crude oil trading system is the better. If the trading system is too complicated, it will be very difficult to stick to the rules. Complicated oil trading systems are also very confusing. A simple oil system makes it easy to follow the trading rules.

2. Eliminate Risk Quickly and Let Profits Run

Minimizing risk is far more important than making money. Our first objective in oil trading is to make the trade less risky. We do this by entering only trade setups, setting stop losses, cutting losses quick and never average down, and letting the profitable trades run for a while, just long enough but not too long so as increase the profits. Profitable trades are only kept open as long as the oil trading system shows the trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the crude oil trading system.

3. Choose the Right Oil Trading instruments

Once you have your oil trading system, you will want to start testing it on a demo crude oil trading account. A trading system will give different results for each oil.

To maximize the profitability of your trading system find the most active market hours for a chosen oil instrument & trade during that market session only.

4. Use Oil Trading Money Management Rules

Always risk less than 2% per oil trade transaction. With compounding, you will be surprised to see how quickly your oil trading account grows once you begin to trade with a profitable trading system.

5. Keep a Oil Trading Journal

Keeping a log of all your crude oil trades will help you to become a better and better and will help you follow the trading rules of your trading system. A oil trading journal will also keep track of your profitable trades & losses and you can analyze why a trade setup was profitable & why it was not.

6. Set take Profit Targets

Establish a daily, weekly or monthly profit targets when trading the crude oil market. Once you hit this target. This will stop you from over-trading and will also stop you giving back your profits the crude oil market. Keep your reward to risk ratio high, a 3:1 reward to risk ratio is best. This means opening oil trade transactions only when you have the probability of making three times what you are risking.

Example of signals generated by our oil trading system

Example 1: Buy Oil Trading Signal & Sell Oil Trading Signal Generated By Oil Trading System

Buy signal is generated by the indicator based trading system, then an exit signal is generated before another reverse sell oil signal is generated on this oil chart

Example 2: Two buy oil signals generated by Trading System

Two buy oil signals are generated during the upward oil trending market

Examples 3: Exit Signal Generated by Trading System

Examples of Oil Trade Signals Generated by a Oil Trading System

Other Tips

Learn Oil Trading Education

First tip is to learn about the Oil Trading Market (Learn Crude Oil Trading Lessons), those who don't learn the required trading knowledge from the various oil trading tutorials online will not improve their oil trading results no matter how many tips they have read. By not learning oil trading, these traders will keep making the obvious mistakes made by oil trading novice traders without even realizing what they are doing, Crude Oil Trading is a wide topic and in order to make profits a trader will have to learn oil trading first.

Get a Oil Trading System

A crude oil trading system is a must for every trader, a trading system is used to determine what oil trading decision to take. A oil trading system gives a trader an edge over others who don't have a oil trading plan. A good oil trading plan is one that is back-tested and proven to produce profitable crude oil trades. After coming up with your trading system you should back-test it on a Demo Oil Trading Account.

Learn Oil Trading Money Management

Learn about The Various Oil Trading Money Management Lessons, don't attempt to trade the online oil market if you do not have oil trading money management guidelines. The 2 oil management guides that you must learn are:

What is Oil Trading Money Management

Oil Trading Money Management Methods

Learn about Oil Leverage & Margin

If you don't know what is crude oil trading leverage & how it works and how it can affect your oil trading margin, then you will not make any money in the crude oil market and you will lose your money in the oil market.

Have a Written Oil Trading Plan

A oil trading plan will take into account all the above oil trading tips and summarize them within one document that you can use to trade the online oil market.

In General

The first goal should be taking your time to really ascertain what your oil trading goals are and how much money you wish to make. Once this is determined then the following three suggestions will help you on your way to start Oil Trading. It is essential to keep all the three goals in mind when executing all of your oil trade transactions but at the same time this is not a black and white guide to oil trading success.

The first thing is to remember that you really need to work with short term crude oil trades until you become profitable and know how to properly monitor these trade transactions. You should trade oil trading short term because this way you can monitor your oil positions and quickly close any oil trading position whose trading signal setup reverses. In order to truly benefit from the oil trading system you have to be willing to take up the effort to watch the crude oil market to see exactly how long you can keep your money invested in the online crude oil market. Making short-term oil trading investments will help you to monitor your crude oil trades and control all the risks, do not leave oil orders open when you are away from your computer or when you are going to sleep, close all oil trade transactions & only open oil orders when you can monitor them.

Although it is very important to increase the amount of crude oil trades that you are investing each time that you trade - some oil trading guidelines should to be followed. The general rule of oil trading tends to be never to trade more than two percent of your total oil trading account equity. This of course makes sense when you have a lot of money in your oil trading account but what if you only have a couple of hundreds. Two percent of $10,000 equals out to be $200. Even though it is safer to follow this rule it really does not make a lot of economic sense with smaller oil trading accounts. If you are investing on Oil Trading this is when oil trading leverage kicks in to effect and makes all of the difference. In General the more oil trading capital you have to invest the better in terms of oil trading money management.

The final suggestion is taking a bit of time to make sure that you get all of your oil trading details correct before opening any one trade transaction, this will be the best method. Keep it simple makes just as much sense in oil market than anywhere else. Although this might require more time and effort to build up your oil profits it will save you money in the long term.

Trying to keep your thinking as clear as possible will make your oil trading journey easier but knowing when to break from the norm is also important. Moving towards the right path will make success that much more easier to obtain and by learning all of the steps and logic you will be able to continue making profits. Oil Trading is not hard to learn but a lot of traders lose money quickly because of not taking the proper steps in preparation and learning.