Crude Oil Forex the unpredictable travel from October 2018 | Commodity trading is one of the tough task for the retail traders many Forex traders lose money which is true among them maximum of them are commodity trading.
Commodity trading market is not predictable anything can happen in market, even if you are on winning side on day start over night jumps may give you heart attack.
In the crude oil you can expect the unexpected technical, fundamental indicators won’t work properly here. For example if your candle sticks are moving in your favorite direction in based on technical sudden crude related news from the power exporters like Saudi, Iran may make the moment of oil in rapid way.
The recent real time example of crude oil futures explains how unpredictable the oil market is.
All started at October 3, 2018 guess the price of the market if you are not trading in CFD – Oil price is 76.74 at that time, not like currencies CFD will have less movements when compared 2 – 4% is maximum but with in short days / Months now at 17/12/2018 Oil price is 50.60.
Wow, this is huge nearly 26$ dropped with in 2 months imagine a person without stop loss bought huge amount of barrels, His total account is at margin call or wash out for sure.
Iran sanctions, Trumps tweet, Over bought brought the bull market to hell with in couple of weeks. On every raise till now we have a huge drop test on oil nowadays but in current situation you cannot sell without caution because Saudi gonna hold the barrels and planned to send only less barrels to USA which may push the market back to form above 60%.
Additionally Iran sanctions are temporary which may also push the price but still it is not a confirmed one so better don’t trade in CFD if you are a newbie or trade with stop loss else your capital will gone for sure.