sean seshadri trading oil
TRANSCRIPT
Trading Oil Sean Seshadri
Trading Oil
• 1 contract of oil controls a 1000 barrels of oil, and if oil is 100 USD/ barrel then it has the equivalent of 100K USD.
• Most investors would shy away from trading this vehicle if it were not for the fact that the broker gives a trader significant leverage when buying this instrument on margin which can be from 2-4k depending on which broker one uses.
Trading Oil
Oil should be primarily used as a short term trading vehicle as the risk can be significant if one holds the trade overnight.
If one is a highly skilled technical analyst then they can predict short term price movement over minutes to hours using charting patterns.
Trading Oil
• Commodities trading in general provides multiple trading opportunities during the day during its open outcry period which is between 9-230pm eastern where there is a significant increase in volume due to decreased margins.
• One should be well capitalized for this market as to many investors try to trade to quickly.
Trading Oil
• One should practice on a virtual account first until one is comfortable before moving to a live account.
• If one rushes by trading too big then failure is the only outcome.
• Any new discipline should be approached with caution, and only with consistent success at a smaller level should a trader begin to trader a higher risk instrument.
