Trading in Oil - Pennies to Pounds

ses6jwg

Good luck with it.

I started spread betting but you get greedier and greedier. I was making about £220 a day.

Then I got greedy started doing £1, £2, £5 a point on some shares.

Ended up losing about £500 in the end.

I just stick to blue chips now and chuck em in the ISA, as well as the odd AIM oiler.

evosy1978

I'm using a well known share dealing platform

please tell?

ses6jwg

IG INDEX prob

newwen112

How do you go about trading in oil on a small scale?

foxwales

ses6jwg wrote: »

IG INDEX prob

Correct

newwen112 wrote: »

How do you go about trading in oil on a small scale?

I'm using spread betting. The basics of how it works is, you bet on whether a specific market is going to rise or fall in stock price, in my case Crude Oil. You place either a buy order if you think it's going to rise, or you place a sell order if you think it's going to fall. You base your bet on how much you want to risk on each point the market increases or decreases, again in my case I am betting 10p per point.

e.g.

Cost of a barrel of Oil stands at $9600.0
I buy at $9608.0
Market picks up and oil reaches $9700.0 a barrel
That's up 92 points in all.
My profit is £9.20

Oil hits $9900.0 a barrel
I sell at $9892.0
Market falls and oil hits $9600.0 a barrel
That's a fall of 300 points
My profit £20.90

It is high risk investment because you can lose more than you have, which means you would owe the company you are trading through money.

I realise all profits no matter how small and I watch for short scale market trends that allow me to bid relatively medium risk.

foxwales

Oil Market dropped again by about 90 points yesterday, so currently standing at around $97 per barrel for US Crude.

The market appears highly volatile at the moment, based on news in Libya and the reduction in production.

I have some buy orders placed when the market hit really low, hoping for a minor recovery today, if not this week. But will probably look at an alternative market for the next week or so once I have cleared these buy orders, as I suspect prices are going to drop down to pre-trouble prices when production re-opens in Libya, so the market potentially has a large amount of points to fall around =>150.

I could place sell orders to take advantage of this, but considering how volatile the middle east is, I don't fancy having sell orders if the cost of a barrel rolls towards $100 dollars!

foxwales

Oil has jumped nearly 200 points this afternoon, i'm riding the wave at the moment.

Up to £91.69 at the moment and about to place my sell orders as soon as the market shows a peak :j

foxwales

FTSE 100 has fallen 50 points, so have placed some buy orders, signs are showing a slow recovery at the moment but if they return to earlier figures, should bag me a nice profit.

sabretoothtigger

Soon as usa opens ftse doesnt matter. 1306 on the Sp500 looks a better place to go long


Do IG do 10p deals on everything ? Sounds a good way to learn on smaller amounts. My advice is take lots of profits, dont keep expecting to gain

atypical

sabretoothtigger wrote: »

Do IG do 10p deals on everything ? Sounds a good way to learn on smaller amounts. My advice is take lots of profits, dont keep expecting to gain

Yes, but only for a certain time period whilst you're on their "free educational programme". Normal minimum is £1 for oil.