Have you ever considered trading crude oil? What’s holding you back? Don’t know where to start?
In this week’s video, I will share with you all the essential information you will need to know before you ever place your first crude oil trade.
Before we even think about trading crude oil, let’s discuss what a crude oil contract is.
One of the best resources to learn about a crude oil contract can be found by following the link http://www.cmegroup.com. Once on the website, you will need to click on “markets” followed by clicking on “energy.”
You will notice there are several options. The two most popular contracts are the BZ and CL futures contracts. By comparing the volume of these two contracts, you can easily see the CL is by far the more popular of the two. CL typically has over twice the amount of volume as the BZ contract.
Now, you may be asking how much money will you need to place a trade? Truthfully, there is no simple answer to this question. However, we can start by looking at the margin that will be required to trade each of these two most popular crude oil contracts. Both the BZ and CL futures contract will cost you $1,000 of margin if you plan to day trade either of the two. I should also note, the amount of margin that will be needed may vary from broker to broker.
If you are a trader that plans to swing trade crude oil, I will note as of writing this article, the CL futures contract is a bit cheaper, which you will see in the video below.
Now, are you wondering if your current trading strategy works on crude oil? You’re not alone. I will show you a simple trading strategy that I use to trade multiple markets, which you can also apply to the crude oil market for day trading and swing trading.
Yesterday, I hosted a live stream where I discussed, in greater detail, one of the trading strategies that I use to trade the Futures and Forex markets daily.
In the video below, I briefly share this very same strategy. The only difference is in the contract I’m trading. During the live stream, I was trading the ES contract, and in the video below, I’m demonstrating the strategy on the CL contract.
In closing, I would like to once again remind everyone about the FREE live streams hosted by myself each week. These live streams are an excellent opportunity for traders of all skill levels to ask questions and interact with me live. Again, this experience is entirely FREE to you. So if you haven’t already signed up, why are you waiting? Please fill out the form below to be notified before any of my future live streams.