Learning to trade crude?

A

AAA30

Hello, I have a question for some of the more experienced crude oil traders here. Today was my first day that I have taken some trades in CL. Today’s action may not of been the norm but I like the contract and want to learn some more about the crude futures market in general.
Do any of you have some good resources i.e. books or websites that you would recommend to educate myself about this market? Stuff that is focused on energy markets not derivatives in general.

And yes I am only a one contract piker. :D
 
While you learn I suggest you trade 1 QM, your training may be less expensive....

Look at the Charts, and try to understand the Price action around cerain levels and trendlines.

Be careful

Quote from AAA30:

Hello, I have a question for some of the more experienced crude oil traders here. Today was my first day that I have taken some trades in CL. Today’s action may not of been the norm but I like the contract and want to learn some more about the crude futures market in general.
Do any of you have some good resources i.e. books or websites that you would recommend to educate myself about this market? Stuff that is focused on energy markets not derivatives in general.

And yes I am only a one contract piker. :D
More...
 
Watch what happens when the price goes +/- 3.5 sigma and if the volatility increases to where it was a few months ago roll that out to 4 sigma. Do yourself a huge favor, trade this monster on a simulator for as long as it takes to get comfortable. This is easily one of the hardest contracts you'll put your eyes on.

Quote from AAA30:

Hello, I have a question for some of the more experienced crude oil traders here. Today was my first day that I have taken some trades in CL. Today’s action may not of been the norm but I like the contract and want to learn some more about the crude futures market in general.
Do any of you have some good resources i.e. books or websites that you would recommend to educate myself about this market? Stuff that is focused on energy markets not derivatives in general.

And yes I am only a one contract piker. :D
More...
 
Thanks for the input guys. I am not trading this on margin vs. my account size just one contract while I get a greater grasp of the market. And I may go to paper if a strategy needs larger size to test things out. Again since today was my first day I can not say too much but the contract kind of trades like AAPL with whipsaw action within the intraday trends. I was not looking for trading strategies per say(But I will take a look at what you have mentioned) but for material on strategies used by larger players like hedgers and commercials that focuses on the energy markets. I want to build a better arsenal of tools to use to analyze the market beyond just the price action such as how to determine what strategies are having the most impact on prices and to understand some of the drivers better. I know this will involve researching the other contracts at the nymex and ice just would like a good place to start.
 
do not trade the mini crude.. it sucks... trade the big crude... actually you should start trading the uso so you can trade extremely small size.
Oil futures are great, but you need to explain what you are trying to accomplish before anyone can give you any advice.. i.e. position, scalp, day trade etc.
 
Quote from jaytrader100:

do not trade the mini crude.. it sucks... trade the big crude... actually you should start trading the uso so you can trade extremely small size.
Oil futures are great, but you need to explain what you are trying to accomplish before anyone can give you any advice.. i.e. position, scalp, day trade etc.
More...

I took a look at the mini crude and did not like it either. I will start off just scalping and day trading might later go into position trades but just intraday stuff at the moment. I have already traded the USO but would rather trade CL. I know for day trading some would say you only need price but if I want to trade this more actively I would like to know what factors I should be looking at. I do not want to find out after losses that this or that was having a impact on price and my discretionary style should not of been used. A better question would be what textbook, or guide book is consider necessary reading for a new crude oil trader?.
 
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