Why I only trade oil and gas

Trading Discussion Trade Journals
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I find oil and gas trading easier and less stressful than Forex, and a lot less frustrating than trying to trade manipulated Gold and Silver markets.

From a fundamentals point of view, data is readily available, and narrow in nature. What I mean by this is best explained with a couple of examples.

Forex - economic performance analysis, geopolitical factors, and in the case of the AUD, NZD, and CAD, commodity prices for oil, Gold and Silver, must be factored into the analysis. There is a wide band of fundamental information to be captured and analysed, but does it really help if you’re trading shorter time-frames?

Gold and Silver - you would think that simple analysis of supply and demand factors would be enough to provide the necessary insight to trade successfully, but that’s not the case. If it were, Gold and Silver prices would be substantially higher than at present. Demand for Silver, for instance, is exploding right now, and yet prices remain stubbornly low. And is it any wonder, when market giants (you know who they are!) flood the market with short positions whenever prices begin to rise. It’s a joke!

Oil and Gas - regular weekly reports from the American Petroleum Institute, Baker Hughes, and the Energy Information Administration, tell us the number of rigs in operation, as well as oil and gas stocks on hand. If the rig count increases, prices are likely to fall, and vice versa. Likewise, if stocks and inventories begin to pile-up, demand is falling and prices will follow suit soon. It really doesn’t have to be any more complex than this. Information is timely, easy to absorb and interpret, and most important of all, helps determine likely price direction over the next week or so. Clean and simple.

Turning to technical analysis, both oil and gas lend themselves well to price chart analysis. A moving average and oscillator are all I need to trade successfully. See the attached charts, for example.

I will be posting my trading results here every Tuesday, Thursday, and Saturday, and hope you find it interesting.

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Nice explanation. I haven’t traded oil and gas much till now. But now I will think to trading more in these two.

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Nicely explained, thank you for this information

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Thanks for the feedback, vicjon1995. I think you’ll enjoy trading these two assets.

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Thanks tedmos38.

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thanks for you worthful information @oilgas Trader
could show share the how can exactly pick the datas from mentioned sites and indicator correlation

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Completely agree with your assessment.

Hopefully the shackles of the paper gold and silver market are about to come off - and the physical markets will finally be in charge of price discovery.

Bullion banks are going to have to close down there shorting operations in the OTC market - as soon as June I believe for many of them.

But if you want one commodity market that trades real well - my new favourite is the agriculturals.

Corn is my new baby.

And unlike gold, silver, bitcoin, US government bonds, or Vix futures, in the event of mad max scenarios you CAN actually eat the stuff!

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Great reply. There really is something organic about agriculturals!

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In my original post I said that “I will be posting my trading results here every Tuesday, Thursday, and Saturday, and hope you find it interesting.”, but I am not allowed to put links to my video posts just yet. Hopefully soon! In the meantime, you can find my videos at my You Tube channel, “The Oil & Gas Trader”.

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Corn- very interesting considering the amount of corn consumed on daily basis in the world. Trading world is just a giant barn full of all sorts :smiley:

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Thank you sharing this.

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US Natural Gas prices are choppy, the spread can be wide, and swaps do take a toll, but as this chart shows, rewards are there if you are willing to trust the indicators and hold.

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Nicely explained, also I feel that oil and gas markets are less volatile therefore there is less risk in trading these instruments.

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Thanks sarah2701. Less volatility because less manipulation.

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Saturday, 12 June 2021

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Is demand for crude oil growing, or is supply contracting?

Stocks of crude oil in the United States plunged by 8.537 million barrels in the week ended June 11th of 2021, after a 2.108 million drop in the previous week, data from the American Petroleum Institute showed. It was the biggest draw since the week ended on September 11th, 2020. source: American Petroleum Institute (API)

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Though Forex Trading is considered to be much riskier than Oil trading, it is also believed to be much more rewarding. Hence I prefer to trade with Forex.

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I believe that it can be pretty beneficial to trade only oil and gas, however traders must be flexible. I always try various assets in order to be flexible, in my opinion, flexibility helps traders to stay on the market, because if one asset gets you down, you can easily choose another one and try your strategy on other assets. Anyway, every trader decides by himself which assets to choose for trading, because every trader is an individual with his/her own view on the market. Oil and gas are kinda specifical, nevertheless the best option for these assets is to pay attention to news I guess.