Trading Crude Oil – from Profit to Loss
This is what happened from trading crude oil. The trade was opened last week and the blog entry for it is here:
http://www.makemesomemoney.co.uk/days-of-negative-price-action-on-crude-oil/
This is another example of when holding out for larger moves doesn’t work out and is therefore making it hard to justify this way of trading. This week, two trades were stopped out and both in loss when if I had followed my previous way of closing out trades I would have been in profit.
The chart is below:
You can see on the chart where I went long.. it was a while back and I was there to hold the trade to see if we could get a large move above the previous resistance at 9800. If I had traded my previous way, I would have closed this trade out at 9800 and ended up in profit. However, I ended up here losing out. It was not the full loss as I had move the stop up to 9650 to decrease some of the risk as the price had been moving up the previous days.
Still, it’s trading crude oil like this, or anything I’m trading is proving to be difficult as I’m trying to figure out how to capitalise on the larger movements and not giving back profits. I need to find a combination of methods to allow me to capitalise as best as I can and minimise loss.. it maybe something like to close half at the level (as per my previous way of trading) and then bringing the stop to breakeven for the other half and seeing if this one can ride higher.
