Trading is one of the most elite professions in the world. Being a new trader in United Kingdom, you can gain access to thousands of trading instruments. Reputed brokers like Saxo are offering a high-end trading environment to retail traders so that they can execute the orders without any stress. To be the best trader in the Forex market, you need to trade this market with the best broker. You must have the ability to pick the right asset at the right time. Though you can trade thousands of instruments, we are going to discuss the oil trading strategy. Follow the tips mentioned in this article and you can easily make a big profit by trading oil.
Learn to trade daily time frame
Being an oil trader, you need to learn to trade the market in the daily time frame. Trading the daily time frame is one of the most effective ways to reduce the risks of trading. Naive investors are losing most of the trades since they take too much risk in each trade. They are always breaking the rules and choosing the lower period to the scalp. But when it comes to the oil market, you have to be patient. Breaking the rules and trying to earn a big profit by trading the minor support and resistance level might even result in a disaster. Unless you learn to deal with the bigger time frame data, you should never try to trade the gold.
Learn to use the price action signals
Being an oil trader, you need to learn price action trading strategy. Elite traders in the Forex market always rely on the different formations of the candlestick pattern, as it helps them to find the potential price reversal zone. But learning to trade with the candlestick pattern is a very tough task. Unless you can follow the perfect rules at trading, things will be hard. Start learning about the basic candlestick pattern and try to trade the oil market in the demo account. Check here and learn more about the professional demo trading account. Use the demo account unless you feel confident with your trading approach.
The use of price action signals will improve your trading skills to a great extent and you will be able to trade this market with a high level of confidence. Unless you can make consistent profit in the practice account, you should never try to trade oil in the real market.
Analyze the major news
The price of oil is very sensitive to major news. If you want to make big profits from this market, make sure you analyze the major news. News trading is one of the key ways the elite traders at Saxo manage to secure big profits. Learning about the fundamental factors is not that hard when it comes to oil trading. You don’t have to deal with unnecessary news. Look for the OPEC decision and other oil production field news. Once you learn to focus on the key news, finding the best possible trades will be easy. Never expect to master fundamental analysis without doing the hard work. It takes time and patience to develop your skills as a fulltime trader.
Learn to trade with the trend
When you trade the oil market, you must learn to trade with the major trend. Trading oil in the lower period and trying to earn a big profit is a very big mistake. Trend trading is the most efficient way to make a profit from this market. To trade with the major trend, you must learn to draw the trend line perfectly. Naïve traders often lose money because they trade the market with a faulty trend line. If you want to succeed in oil trading, you should also learn about the Fibonacci trading strategy since it will let you know about the endpoint of the retracement. So, use your knowledge and follow the tips of this article to become a great trader.