TIPS: MAXIMIZING PROFITS OF Oil Trading SYSTEMS
1. Define Simple Trading Rules & Follow the Trend
The simpler the oil system is the better. If the oil system is too complicated, it will be very difficult to stick to the oil rules. Complicated oil 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 main objective in oil 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 system shows the trend is in place, these transactions should be closed immediately once your exit signal criteria is generated by the crude trading system.
3. Choose the Right Oil Trading instruments
Once you have your oil system, you will want to start testing it on a demo crude trading account. A oil system will give different results for each crude oil.
To maximize the profitability of your oil system find the most active market hours for a chosen crude oil and trade during that market session only.
4. Use Crude Trading Money Management Tutorials
Always risk less than 2% per oil trade transaction. With compounding, you'll be surprised to see how quickly your oil account grows once you start to trade with a profitable oil system.
5. Keep a Oil 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 oil system. A oil 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 trading market. Once you hit this target. This will stop you from over-trading and will also stop you giving back your profits the crude trading 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 3 times what you are risking.
Example of signals generated by our oil trading system
Example 1: Buy Oil Trading Signal and Sell Oil Trading Signal Generated By Oil Trading System
Buy signal is generated by the indicator based oil system, then an exit signal is generated before another reverse sell oil signal is generated on this crude oil chart
Example 2: Two buy oil signals generated by Trading System
Two buy oil signals are generated during the upward oil trending market
Example 3: Exit Signal Generated by Trading System
Examples of Signals Generated by a Oil Trading System
Other Tips
Learn Oil Trading Education
The first tip is to learn about the Crude Trading Market (Learn Oil Trading Lessons), those who don't learn the required oil knowledge from the various oil tutorials online will not improve their oil results no matter how many tips they have read. By not learning crude oil, these traders will keep making the obvious mistakes made by oil novice traders without even realizing what they are doing, Oil Trading is a wide topic and in order to make profits a trader will have to learn oil first.
Get a Oil Trading System
A crude trading system is a must for every trader, a oil system is used to determine what oil decision to take. A oil system gives a trader an edge over others who don't have a oil plan. A good oil plan is one that is back-tested and proven to produce profitable crude oil trades. After coming up with your oil system you should back-test it on a Demo Oil Trading Account.
Learn Oil Trading Money Management
Learn about The Various Crude Trading Money Management Lessons, don't attempt to trade the online oil market if you do not have oil money management rules. The 2 oil management lesson that you must learn are:
What is Oil Trading Money Management
Crude Trading Money Management Methods
Learn about Crude Oil Leverage & Margin
If you don't know what is oil leverage and how it works and how it can affect your oil margin, then you will not make any money in the oil market and you will lose your money in the crude trading market.
Have a Written Oil Trading Plan
A oil plan will take into account all the above oil tips and summarize them within one document that you can use to trade the online crude oil market.
In General
The first goal should be taking your time to really determine what your oil 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. 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 & white guide to oil 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 short term because this way you can monitor your oil positions and quickly close any oil position whose trading signal setup reverses. In order to truly benefit from the oil system you have to be willing to take up the effort to watch the oil market to see exactly how long you can keep your money invested in the online crude oil market. Making short-term oil 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 guidelines should to be followed. The general rule of oil tends to be never to trade more than two percent of your total oil account equity. This of course makes sense when you have a lot of money in your oil 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 accounts. If you are investing on Oil Trading this is when oil leverage kicks in to effect and makes all of the difference. In General the more oil capital you have to invest the better in terms of oil money management.
The final suggestion is taking a bit of time to make sure that you get all of your oil 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 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 isn't hard to learn but a lot of traders lose money quickly because of not taking the proper steps in preparation and learning.
