Trading Oil Interpret and Write a Oil Trading Plan
Oil Trading Write a Oil Trading Plan
The following is a trade plan example template of a best oil trading plan:
JUSTIFICATION
1. Oil Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always begin with a plan.
- Successful business planning will guide you to success, think of the oil trading plan as a map: it's a constant reminder of how you will consistently pull profits from the oil trading market.
- Difference between a successful oil trader and a losing one is the oil trading plan.
2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Crude Oil
Consistency is important in your routine to measure how successful you are.
Keep you on target, read your oil trading plan every day and stick to it.
When it comes to your oil trading plan you should think of it as a map that shows you this is what you follow, it should have clear oil rules which specify when you open or close a oil trade transaction.
Your oil trading plan should cover all aspects of oil trading, you should read your oil trading plan every day until it's on your fingertips so that when you are trading on the fast moving market of oil you'll always know what to do in every situation.
Your oil trading plan can be as simple or as complicated as you like, but the most important thing is that you've one. By having a oil trading plan you have an advantage over the crude oil market, you'll have better odds of making a profit than those oil traders who don't have a oil trading plan.
This oil trading plan tutorial topic provides oil traders with an example oil trading plan which you can use for creating your own oil trading plan. By now you have already written down the justification part of your oil trading plan, If not get a pen and paper and write the justification part. Next we shall look at how to write the crude oil trading system.
Oil Trading plan is one of the secrets which can help you to improve your trading profits. A good oil training guide like this one should show you how to create a oil trading plan using a oil trading plan which you can use as example to create your own.
One of the most common question is, Is Oil Trading profitable? one of the methods to make it profitable is to have a good oil trading plan.
IF YOU HAVE A GOOD Oil Trading PLAN AND YOU ARE DISCIPLINED ENOUGH TO STICK TO IT When Crude Oil Trading Oil, YOU WILL BE SUCCESSFUL.
GOALS OF THE Oil TRADING SYSTEM
- Ability to IDENTIFY A Oil Trading TREND AS EARLY AS POSSIBLE .
- Ability to AVOID WHIPSAWS .
The oil trading system should find a compromise between the two Goals,
Find a way to identify a oil trend as early as possible but also find ways to help you distinguish the fake trading signals from the real ones.
FUNCTIONS OF EACH Oil TECHNICAL INDICATOR
MA - Identify a new oil trend as early as possible.
MACD - Identify a oil trend as early as possible.
Determine strength of a continuing crude oil trend.
RSI - Swing failure to confirm the begin of a new crude oil trend.
Extra confirmation oil indicators & tools to help determine the strength of our crude oil trend.
Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the crude oil trend.
Trend Lines - Signals a reversal when the oil trend line is broken
Oil Trading Price Action Signals - confirm the weakening of a crude oil trend.
Bollinger Band - for oil price action study
To learn more about each crude oil technical indicator and how these indicators can be used to generate oil signal setups you can go to the Crude Oil Technical Indicators Section
Oil TRADING CHART TIME-FRAMES
- Main oil chart time-frame is the 1H.
- Oil Trading Signals are generated on the 15 minute oil chart timeframe.
15 Min Oil Trading Charts
- Trend-Lines (Support & Resistance)
- 5 & 7 LWMA
- RSI (14)
- Bollinger Bands (20, 2)
RULES
LONG ENTRY
Entry
15 Min Oil Trading Charts
- Both Moving Averages are moving UP
- MACD moving UP
- RSI >-> 50
- Parabolic SAR is below the crude oil price (Support)
When a oil signal is generated on the 1 Hour Chart, use the 15 minute oil chart timeframe to open and close positions.
LONG EXIT
- RSI gives opposite trading signal
- Oil Trading Price breaks out Support Trend Line
- Parabolic SAR is hit (Trailing Stop)
RULES
SHORT ENTRY
Entry
15 Min Oil Trading Charts
- Both Moving Averages are moving DOWN
- MACD moving DOWN
- RSI <-< 50
- Parabolic SAR is above the crude oil price (Support)
When signal is generated on the 1 Hour Chart, use the 15 minute oil chart timeframe to open and close positions.
SHORT EXIT
- RSI gives opposite trading signal
- Oil Trading Price action breaks out Support Trendline
- Parabolic SAR is hit (Trailing Stop)
ROUTINE
- Oil Trading signals are generated using 1H oil chart timeframe and executed using the 15 minute oil chart timeframe.
- oil signal to be executed immediately rules are met.
- Entry alert signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET - MARKET HOURS
Watch market during daytime when most companies & online oil brokers are open for trade transactions. Use this to create a suitable oil trading schedule.
Example
Oil Trading Tips - You can use the MT4 Oil Trading Software Platform to save this oil trading plan example as a oil template on the MT4 platform - that way you don't have to lay it afresh every time you open a new oil chart. If you want to learn how to save a oil template on the MT4 platform, read: MT4 Oil Platform Lessons.
MONEY MANAGEMENT RULES
- Day trading - Low risk High return technique
- Trade when I have a high risk to reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 40-60 Pips
- Never transact beyond 3% of oil trading account equity
- Never risk more than 2% on a single trade
MINDSET/PSYCHOLOGY
- Trade without Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job is not to be the oil trading system!
It is not to decide which signal looks promising.
That is the job of my oil system - that has a set of trading rules which tells me this is what I follow. Do not get caught up in crude oil price action and make rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently & wait for my oil trading strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the oil trading plan as outlined.
Taking trades not indicated by the oil trading system, second guessing the crude oil trading system & not taking signals given, hesitating & getting in late, anticipating and getting in early are all common place & boil down to lack of faith in the plan & not having a burning focus on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my oil trading rules accurately.
The more you develop the ability to step back from crude oil price movement & watch the crude oil market dispassionately, waiting for a signal, the easier it will be to witness fluctuations of your emotions without getting sucked into them & allowing them to throw you off your game.
WEAKNESS
- I am greedy.
- I over-trade
- Make a list of all your weaknesses which are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Oil Trading psychology to help you overcome them.
NB: by writing down your weaknesses you'll start recognizing them as you make progress in crude oil trading, once you do this you will start to avoid this mistakes and your trading results will improve.
GOALS
- To focus on exit just as much as I do on entry signals.
- Always protect my oil trading account using stop loss oil orders, oil money management techniques, follow with the oil trend direction & always following the rules of my oil trading strategy.
- Never second guess or go against my oil strategy. To always keep up my discipline.
- Follow all the rules of my oil strategy & never break them.
- Trade fewer times & execute all my oil signals correctly. Trade what I see, what the oil trading system + oil charts are telling me.
- Sit patiently & wait for oil trading signals from my oil trading strategy.
- Achieve consistent profitable results before opening a live crude oil trading account.
FOLLOW THIS SYSTEM
This is the most important part of creating the oil trading system.
Always follow the rules
Stick with the rules
Be disciplined & patient enough
Oil Trading JOURNAL
Log all my oil trade transactions in a oil trading journal in order to track my training progress & improve my oil trading execution methods.
The oil trading strategy uses momentum to determine the trend of any oil.
Even if you are new to Oil Trading market and you do not know how a oil trading system looks like, this crude oil trading system examples illustrates to you how a system oil trading strategy should look like, the oil trading guides explained in other sections of this learn oil training website will also explain further different aspects which you need to learn.
Hence, aim is to help you come up with your own complete oil trading strategy that's if you are looking for one, by showing you one that is already complete. In fact you can just use this oil trading plan example as it is, or make a few adjustments so that it fits your oil trading style.
The objective is to help you improve your oil trading results by using a oil trading plan that is written, and another advantage is that this oil trading plan will offer you a chance to improve your knowledge and it will help you trade better, make pips and keep them so that you do not keep giving them back to the oil trading market.
Read this oil trading plan training tutorial about developing a oil trading plan of your own, along with the learn oil courses and oil trading strategies listed at the top of this learn oil tutorial.
The Most Beneficial part of using this oil trading plan is the "Money Management Part" you will learn how to oil trade and minimize risk, which is the most important thing when it comes to the oil market trading.
Oil Trading Write a Oil Trading Plan - Oil Trading Write a Oil Trading Plan - How Do I Trade Oil Trading and Write a Oil Trading Plan
