Posted in: Trading performance

Trading Oil

Trading Oil: 3 simple steps to recognise a trading opportunity

Trading Oil

Trading Oil

 

Hi guys, welcome to today’s blog. In this blog we are going to talk about on how you can recognise a opportunity to  make money on trading oil

Trading Oil Step 1: Recognise the market condition

When you are trading as with many other traders, you would want to maximize your profit. For every dollar that you invest you want gain as much as possible right? In order to do this you will need a broker that gives you leverage or provide you tools such as options or CFDs. Many brokers like Plus500, Instaforex and Markets.com gives you the opportunity to maximize your profit on every pound you invest. These brokers mentioned gives you the ability to make a trading in oil. Keep in mind that not all brokers gives you the ability to make a trade in oil. So now let’s go to oil.




When you look at the oil chart (above), the first thing you need to do is to determine the current trend of oil. There are three kinds of trends.

Up trend

Up trend is also often called Bullish trend. In a Up trend Oil price goes higher and higher after every small downgrade in prize. You can recognise a up trend by the following: each cycles their top goes higher then the previous cycle. And the bottom of each cycle goes up as well.

Sideways Trend

In this situation each prize cycle doesn’t show much of a price difference each cycle. Therefore its better not trade in this situation because the risk reward ratio is too small.

Down Trend

In a down trend the price cycle of for example oil is going lower after each cycle. For example oil price today is 48 usd. Yesterday it was 52 usd  and the day before yesterday oil price was 56 usd. The down trend is often called as bearish trend.

For more information on trends you can read here: Trend Lines

 

Trading Oil step 2

The next step in making money with trading oil is recognise a entry point to the trade. For most people this is difficult because they don’t determine the market condition first.  Once you have recognise the market trend. Its very easy to determine the price point for you to invest in the trade. All you need to do is buy at the point when you think the next cycle will start. Often the best point to buy is the ”corners” under normal market condition.

Trading Oil Step 3

In this final step you are going to determine what your exit point (selling pirce) is and decide if it is worth to make a trade. So how to determine your exit point of your trade? Just take a look at the market cycles. For me the best way to exit a trade is by taking my profits before the price reach to a next key turning point( corners). Because if I wait till after the “corner” point then there is a good chance that I will lose my profit because the price trend might change. There is a big chance that it goes into the opposite direction of what I wanted. Therefore it is better take my profit before the price at that key turning point price level.

When you have determine what you entry point ( investing price point level) and what your exit point is. That way you can see what your potential profit is. If the profit potential is too small then don’t trade. And if the potential profit is big then start a trade. Al right guys hope this have helped you a better understanding in trading. If there are any question please post it in the comment section. I will get too it as soon as possible. Have a series of successful trades ladies and gentlemen.

+500

Step 3: Trading plan

Online Trading: How to make a good profit with just 160 Euro

Start trading now to receive a 20 pounds welcome bonus!

Starting with online trading is much easier than you think. In this article we will explain to you how we trade and how we made a profit of 422 euro with only a small deposit of 160 euro.

 

Why online trading?

Trading used to be only for banks and big companies. Now, with the internet, it is possible for anyone with an internet connection to trade. This means you can not only trade from home, but from wherever you are and whenever you want. Besides this awesome fact, you can also trade with leverage. Leverage? Yes, with a leverage of 1:20 you can trade in stocks (CFD’s) 20 times more worth than your deposit. The advantage of this is that you can receive a very high profit with a small deposit.

For example:

Let’s say you have 100 pound and the leverage is 1:20, with only 100 pound you can open a position worth of 2.000 pound (100 * 20).

You can see with only a small deposit, you can make a big profit. This is perfect, because even if you don’t have a lot of money, you can make good money with online trading.

 

So how can you start online trading?

First of all, sign up to an online broker. Compare the best online brokers here and receive a 20 pound bonus to practice with. There are no obligations when you sign up, so go ahead and try it out. Find out how to receive more bonus here.

In our previous blog “Smart online trading in stock CTRIP: 1019 profit”, we have explained one of our trading strategies:

Guide-to-profit

  1. Find a reason to trade
  2. Open and close a position
  3. Evaluate your trade

Now how can you start doing exactly this? What sources do you use? This article explains just that. We will also use a real example of one of our own trades. Now you can follow these quick steps to begin to trade right away. The steps below follow the strategy that we learned before, but this time we put it in action! You can even use these steps below as a checklist for your own trading.

 

Step 1. Choosing the stock

First of all find a good earnings announcement calendar like the one from Yahoo:

  • Review which stocks have an earnings report coming out today.
  • Pay attention and only choose the ones that are available in your online broker stocklist.
  • Only choose stocks that have a time supplied. Write this down.
  • Find out what the leverage is, the higher, the better.
  • Find out about the company.

A real example:

On the 10th of June, 2015 we looked at the earnings calendar and we found Box Inc (NYSE: BOX). First thing we did was:

  • Find out if this stock was on Plus500, it is. Now let’s check the leverage: 1:20. Great!
  • The time of release is after market close. Love it! We tend to like these stocks more, because during after- and pre-market, you usually can predict what direction the stock is going. So at market open, we would be more prepared.
  • Now a little Google search helped us learn about this company, it is a technology company much like Dropbox. They use the cloud to give people the chance to back up or share their files online, so it can be accessed anywhere. This sounds good! Let’s move on.

 

Step 2. Should I open a long or short position?

After learning about the company, follow this checklist:

  • Find out whether the announcement will be good or bad. It doesn’t matter which direction it goes, because either way, you can profit. You should already know that the movement of a stock is almost always volatile whenever an earnings announcement gets released. To be sure, you could check the volume of the stock on Yahoo Finance, for example here.
  • StockTwits: one way to find out whether the earnings announcement will be good or bad is by reading what other people say about this stock. We tend to read StockTwits for this. For BOX the link is: //stocktwits.com/symbol/BOX.
    You can insert your own stock in the search field and then view what other people think about this stock. You can even see whether or not they think it is going up (bullish) or down (bearish). If you see a lot of bullish, it most likely will be bullish.

As for BOX, we could see it go up, not only because of what we read online, but also looking at the past quarterly earnings numbers. Where do we find these numbers? At the website of the company itself. All companies where you can invest in has an investors page. BOX’s investors page can be found at: //www.boxinvestorrelations.com/. Also, Google is your king.

 

Step 3. Open the position at the right timing

All this together has decided it for us. We think BOX will go up. Next we did the following:

  • Open a position not too early: we opened a buy position on BOX just before the news came out. As noted before, this is just before market close. Don’t open the position too early, because the normal daily volatility could give you a disadvantage.
  • Money deposit: also, we only deposit money that we want to use: 160 euro. Not more and not less, because this will help us not lose more than we want to. This is important! Only use money that you can afford to lose.

Now we wait.

 

Step 4. Closing the position

News is out! The market is still closed though. All we can do is check the stock price (the aftermarket/premarket one) constantly, you can use the NASDAQ after hours website for this. Yahoo Finance also provides this information. It is in the small font just under the open market price.

So what now? Be sure to be ready when the news comes out, the stock will now go up or down very fast. Our stock BOX moved up, we could already see the numbers in the aftermarket. The next day just before market open, check the numbers again. You will see at what price the stock will open. At this point we already knew that we had a win. The next thing to do is preparing ourselves to close the position as soon as possible. At market open, at the first possible opportunity we closed the position, grabbing our profit of 422 euro. Amazing!

plus500-result-box

Remember this: don’t ever be greedy. Unless you know how to use a stop loss, you can wait before closing the position. More about stop loss strategies will come later.

 

Step 5. Withdraw your money unless you want to use it for a future trade again

Don’t let your money sit on your account. Withdraw it, use it, enjoy it! Online Trading isn’t all work, it should be fun too.

Now don’t forget to evaluate your online trading today, you can always learn from it for future trades.

Got questions? Feel free to ask them below.

 

online stocks trading profit

Online Stocks Trading in CTRIP: 1019 euro Profit

Ever wanted to make money whenever and wherever you want? Start trading now and receive a 25 dollar welcome bonus

By trading stocks online in a smart way, we made 1019 euro profit yesterday. In this article we will introduce you to trading smart in stocks by explaining it with a real example.  After reading this article you can start trading too.

Online stocks trading: how did we make  a profit?

Trading in CFD is not only about luck. Using a strategy would up your chances by a lot to profit. Yesterday we found a good stock to trade: CTRIP, we opened a buy position (long) at stock price 65.70 and closed it at price 74.34, which made us a profit of 1019 euro with 400 euro. So how did we do this?

CTRIP1

online stocks trading profit

Step 1. Find a reason to trade

The first and most important step in online stocks trading is to find yourself a motive to trade. So why did we choose CTRIP? First of all, we knew that it’s quarterly report was going to be released and whenever news like that comes out, a stock has super high volatility. We also found out that this news was going to be positive. How? We read about the company, we did a simple Google search. CTRIP is a Chinese online travel agency for booking flights, hotels and trains. So we found out that CTRIP is a online technology company and by watching the economic news we know that technology companies are doing well in these times. We then went to the investors page of the company (every stock company has one) to read the latest news and the previous quarterly report and did a quick analysis. All was positive. This has made us decide to open a buy (long) position on CTRIP, because we expected that the newest quarterly report would also be positive. This means we think that the stock price will increase after report release.

Trading with positive or negative news is what you call ‘Fundamental Analysis‘. Read more about how to use fundamental analysis to profit at this page.

 

Step 2. Opening and closing a position

After reading about the company we also found out when this report was going to come out. It turns out that it would come out after-market. This means after market close. In the online stocks trading world observation is one of the most important thing that all traders must do before entering the market. So we decided to watch the position all day and find the perfect time to open a buy position. We decided to open a buy position right before market close with 400 euro when the stock price was at a low price. We deposited the money, not more and not less, because we don’t want to lose more than we deposited.

After market close the news of the quarterly report came out and it turned out to be, like expected, positive. During the night we could see that the after market price was rising over 10%. This means a big win! At market open, the next day, the price rose around 13%, we decided to wait till market open and close the position as quickly as possible, because whenever a price is rising that much there could be a big sell off, which results in stock price decrease. So after the market opened, we closed the position immediately to lock the profit and gained ourselves 1019 euro profit.

CTRIP1

online stocks trading profit

 

CFD’s: Trade with a small deposit like a big trader

How did we make so much money with only 400 euro in online stocks trading? Well, we traded in CFD stocks, which gave us a leverage of 1:20. With leverage you can trade with a small deposit as a big trader. This meant for us: trading with 400 euro was actually worth 400 * 20 = 8000 euros. So we could trade 8000 euro worth of stocks with only 400 euro, which means we can profit 20 times more than our deposit, but we cannot lose more than our deposit. Which is awesome, but only when you use the right strategy.

Plus500_logo

 

 

Plus500: Trading in CFD’s with a leverage of 1:20. Open a free account here.

 

markets_logo

 

 

Markets.com: Trading in CFD’s with a leverage up to 1:20. Open a free account here.

 

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Avatrade.com: Trading in CFD’s stocks with a leverage of 1:10. Open a free account here.

 

Step 3. Evaluate the result

In the online stocks trading world it is important to evaluate your trade after closing a position. Write it down in your plan, tell the document what you did and why you did it, because that is the only way to learn from your profits and also mistakes. This way you can adjust your strategy until you find one that fits you the best.

 

So in short…

 

Guide-to-profit

online stocks trading profit