Oil has been all over the news recently. So I wanted to share how I’ve been trading this news.
Oil has been heading south. The price has dropped and dropped. Even further then pretty much all the analysts originally predicted. Sure, they are now predicting it will drop even further. But I’m sure at the beginning they were even surprised.
So how have I been making money with oil? Well entirely through selling positions on both eToro and Plus500. On eToro i’ve simply been copytrading guru traders, who open a lot of oil positions. And on Plus500 i’ve been opening my own manual trades. Thankfully as the prices has gotten pushed down, I’ve been able to cash in and enjoyed returns of around 33% so far. If it drops further, I’ve still got open positions so that will increase.
Here are a few tips to be aware of:
- Oil is volatile. Watch your leverage. Even if your betting the price will drop, you need to have enough breathing room as the price may fluctuate upwards.
- Watch the news. The price of oil is directly related to geo political events. Get accustomed to the news events which effect the price of oil.
- If you’re not experienced, just copytrade. Don’t play a guru, just follow one.
- Be wary of when contracts expire. Know the dates and make sure you can close out your trade before the contracts expire.
So there you have it. How have you been making money from the recent oil dip?
eToro and Oil CFD’s
eToro lets you buy and sell oil CFD’s with as little as $25. You can choose various levels of leverage from low to high risk. Check out eToro here