Eight Iron Rules for Short term Trading of Crude Oil

Two are doing itcrude oilWhen investing, there are three trading methods: long, medium, and short, each with its own advantages and disadvantages. So, what are the advantages and significance of short-term trading?

Short term trading is the best way to train basic trading skills, and even if you don't ultimately adopt a short-term style, this ability is still very beneficial. The ability to engage in buying and selling operations is crucial for short-term trading, which is different from other methods that rely on analysis and prediction.

For a short-term investor, determining the correct direction and magnitude of the market is not the most important thing, the most important thing is the ability to process orders in real-time.

You need to know under what circumstances, what techniques to use, at what speed and frequency, when to buy and sell at the most favorable position and timing, when to enter, when to exit and wait, how to effectively control losses, how to maximize and expand profits, how to place orders to obtain the most favorable trading position, and how to quickly adjust your physical and psychological state after encountering setbacks... These are all important skills required for all types of trading.

Compared with other methods, short-term trading is still a "way closest to market reality", almost entirely a real-time operation ability in the market, which does not require any assistance or supplement from other abilities. It trades based on the current real-time market conditions, rather than analyzing and setting several intervals or key trading positions, and waiting for the market to enter designated areas and positions before conducting trading operations.

Short term trading does not wait for the market, there are trading opportunities every moment.

It cannot be denied that short-term traders may also have expected ranges and positions at certain times, and adjust their trades by observing the market's verification dynamics of these ranges. However, these advance settings or expectations are not important to short-term traders and can be adjusted or abandoned at any time.

The following are the eight iron rules for short-term crude oil trading, all of which are indispensable:

1Short term essentials: fast, accurate, and ruthless. If you leave these three words, you are not suitable for short-term trading, or in other words, you will never be able to do short-term trading well.

2Position management: There may be two to three good opportunities to open short-term positions every day,In order to ensure that after opening the warehouse, there will be no missed better profitable varieties due to excessive capital occupation. The funds for each opening should be controlled at 30-40% of the available funds.

3The starting point for short-term trading requires precision. Once the ideal opening price is missed, one must give up and maintain the trading discipline of preferring to miss rather than make mistakes.

4Trading rules: Before entering, think back. It is necessary to know that every opening carries risks, so before opening a position, you must know where to stop losses in case you make a mistake. In principle, the limit of stop loss is greater than(8%)We should give up when the time comes(Or patiently wait)Start at the best position, you can chase after orders in extreme market conditions, but you must strictly control your position.

5Stop loss: Use conditional orders to open or place trades as much as possible, and set stop loss immediately once the trade is completed. Don't overly trust your execution ability, remember: take profits can be hesitated, stop losses must be resolute.

6Take profit: If there is a profit, liquidate some positions at important support or pressure levels(Guaranteed operation)Ensure the success of this transaction.

7Position: As the profit margin increases, the tiered closing process reduces the proportion of positions held, and the profit on the remaining positions before the close does not reach15%above(Or not detached from cost)In principle, no overnight storage is allowed. if exceeds15%And when the trend is good, you can reserve a single position(30%)Enjoy the charm of trends to the fullest and strive to maximize profits.

8Control trading frequency: If short-term operations continue to stop losses on the same day2Secondly, short-term trading should be stopped in principle. Unless there is a very secure situation(Meet the four major conditions)When considering the variety and location of the species, the second option can be considered3The next operation.

There are many investment methods with different trading rules, and other people's methods may not be suitable for you because everyone's personality leads to different investment habits and results. Some people like short-term trading, while others like short-term trading. Therefore, what suits oneself is the best.

writing/Ding Yutong