Oil is the hardest thing to trade successfully, at least in my experience, but I will keep trying.
Bought 1 contract (CLZ18) at 64.83 on Oct 31. Set the stop at 64.69. Pretty tight stop, but only willing to risk $140. At one point, I had a $200 profit, but the market turned and I was stopped out at my 64.49 stop price. Good thing too. Overnight, oil went down $1.90, which would have been a $1,900 loss.
That is the purpose of stops. Always use them. They protect your account if you're wrong. And you will be. But if your wins are at least 2:1 over your losses and you're only right 50 percent of the time, you'll make money. I shoot for a 3:1 gain; otherwise, I probably won't get into the trade.
Will look for another opportunity at these lower prices.
Bought 1 contract (CLZ18) at 64.83 on Oct 31. Set the stop at 64.69. Pretty tight stop, but only willing to risk $140. At one point, I had a $200 profit, but the market turned and I was stopped out at my 64.49 stop price. Good thing too. Overnight, oil went down $1.90, which would have been a $1,900 loss.
That is the purpose of stops. Always use them. They protect your account if you're wrong. And you will be. But if your wins are at least 2:1 over your losses and you're only right 50 percent of the time, you'll make money. I shoot for a 3:1 gain; otherwise, I probably won't get into the trade.
Will look for another opportunity at these lower prices.
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