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Top four tips to trade crude oil like a pro trader

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Trading crude oil in the investment business is a very tough task. Most people think they can earn a big amount of money by riding the long-term trend in the market. But if you do the market analysis, you will notice finding the trend in crude oil is one of the most difficult tasks in the investment business. Unless you have strong strategic skills, you are never going to know the proper way by which you can trade crude oil.

So, how do professional traders trade the crude oil and make a regular profit? Well, they follow strategic rules and trade the market with discipline. In this post, we are going to give you some amazing tips which will allow you to trade crude oil like a smart trader.

Trade the daily time frame

The novice traders prefer to trade the lower time as it helps them to find more trading opportunities. But if you trade crude oil, you need to trade in a higher time frame. By analyzing the higher time frame data, you should be able to find reliable trade signals in the market and thus you will make more money. Though higher time frame trading is boring, still you need to learn a higher time frame trading strategy. Once you become good at higher time frame trading methods, try to learn about the multiple time frame analysis. By learning about the multiple time frame analysis, you should be able to take the trades with a high level of precision.

Trade with the top brokers

Many novice traders often say the brokers don’t provide accurate price feed. To avoid such problems in commodities trading, you need to trade the market with the top brokers like Saxo. Once you start trading the market with the high-end brokers, you will get access to robust tools. Learn the use of advanced tools so that you can analyze the market data systematically. If you intend to make a regular profit, you must learn to keep pace with the market dynamics. This will be only possible when you have the skills to use modern tools. If required, you may use the demo account to learn the use of the advanced tools offered by the high-end brokers.

Use the Bollinger band

Indicators are often considered as the helping tools for novice traders. To make the overall trading process easier, you should learn to use the Bollinger band. The lower band will act as the support level and the upper band will act as a resistance level. When the price of crude oil rejects the lower band, you should be looking for the long trade setup. On the contrary, if the price of crude rejects the upper band, you should be looking for the selling signals. If possible use the price action confirmation signals at the Bollinger band.

Learning about the price action confirmation signal requires strong devotion. You need to move back to the demo account and learn the important details regarding the price action trading strategy. Once you become comfortable with your demo performance, you may start trading with real money again.

Trade with a high risk to reward ratio

Successful traders always trade with a high risk to reward ratio. They know without following a high risk to reward ratio, it will be impossible to make a regular profit. On the contrary, novice crude oil traders trade with a negative risk to reward ratio and become frustrated after losing trades. You must learn to control your feelings and find the trade signals based on a high risk to reward ratio.

Once you master this technique, you will become more confident about your actions. Moreover, you don’t have to feel stress after losing a few trades. Be smart with your actions and always take the trades with managed risk to protect your trading capital.