Rockwell Trading Shares How To Day Trade Crude Oil

“Trading crude oil in the futures markets doesn’t have to be a slippery business,” explains Markus Heitkoetter, CEO of Rockwell Trading, on his new live series - Coffee with Markus.

Day trading is quite different from investments that are meant to generate higher returns in the long-term. For day traders, crude oil could be the smart choice, as it makes big movements on a daily basis depending on the speculations in the market. Physical oil isn't dealt with or claimed, rather all the trading exchanges occur electronically and benefits or misfortunes are reflected in the trading account.

There are a number of ways to day trade crude oil. Rockwell Trading PowerX analyzer also allows day traders to make the best out of the crude oil trades with the support of few clicks. Markus Heitkoetter also like to trade crude with the help of its newly built PowerX Analyzer and also loves to share his crude oil trading ideas on a live show ‘Coffee With Markus Heitkoetter’ from Monday to Thursday.

Crude oil futures trade through the Chicago Mercantile Exchange (CME Group). There are several types of crude oil, and contracts, which can be traded. There is a (Light Sweet) Crude Oil Futures Contract (CL) which represents 1,000 barrels of oil, and an E-Mini Crude Oil Futures Contract (QM), which represents 500 barrels of oil.

Oil price movements are highly predictable if traders have the keen eye on the market news and the demand and supply dynamics. Oil is also highly correlated to the U.S. dollar exchange rate and the news related to global economic outlook.

For instance, after dipping to the 52 weeks low in June, oil prices bounced back sharply to around $48 a barrel at present. The big forward move in oil prices was brought by the decline in U.S. oil inventories and the decline in rig counts. In the latest trading session, U.S. oil prices moved 44 cents higher, supported by the dip in U.S. dollar along with the decline of 4 rigs from U.S. operators in the last week. Overall, making profits through trading oil prices looks like a wise strategy, while following major analysts such as Markus could ease the way for new traders when to buy or sell oil futures.

Those interested can get these insights on the market live at rockwelltrading.com/prcoffee.