How To Trade Oil Futures

 The oil futures trading, in many respects, is similar to futures trading of any kind. As trade in ES, the S & P E-mini futures trading oil futures on the NYMEX (ticker: CL) can be very rewarding, as you may have as much influence with which exert a powerful trading . On the other hand, trade in oil futures trading is much more difficult in the E-mini S & P. Oil prices are so strongly influenced by external forces, non-technical sources, analysis techniques that are customary in financial futures, sometimes have little effect on oil. Crude oil can be strongly influenced by supply and demand, OPEC relations, inflation, etc. With this in mind, remember to keep some points in mind when you start planning the oil business

Fundamental analysis of oil

The main elements to consider are the news wires and reports of oil. OPEC reports can play an important role in earnings, unless you are a very experienced professional should simply stay out of market reports daily. There is simply no way to know which way to go, and since it is a strong bet, capital preservation is paramount. These are the dates of the reports of OPEC for the rest of 2011:

Tuesday, October 11
Wednesday, November 9
Tuesday, December 13

Often, you can also get reports of thoughts and opinions of the management of oil from various news and opinion websites, such as Market Watch. They can give you a summary of the data available to all, and this service can save you time. For example, a good news service lets you know that the big funds to reduce their net long positions of a certain amount. This information can provide a peak in the possible actions of the major funds at a later time.

Technical Analysis

Although the analysis technique can be difficult because the oil trade is still an effective way to add valuable information to the decision of its trade. There are some recommended configurations that can be used when trading futures trading of crude oil, and I will go in a few here. However, remember they are just general guidelines and you should always find what is most comfortable for you.

Next to find news and features that can influence the market, I recommend you start using both daily and intraday (10 minute) charts. In the daily chart, try to keep the general trend, and then use intraday charts good entry points. I can use the MACD indicators and market profile to give me a good overview of support and resistance in both classifications.

Enjoy the great prizes, high and potential losses

The negotiation of any contract term, including crude oil, can give a tremendous advantage and can give measurable results in trading ranges. Be sure to take into account the low as well - with great profit potential that potential losses can be enormous. Keep the money management under control, trade with a trading plan and have specific goals and outcomes in mind before entering a trade.