Oil trading is a very challenging task. Rookies don’t know enough about the volatile nature of the market. They jump into the trading world and try to make millions. But things are not as easy as they seem.
You must be very careful about the trade execution model, and you can only become good at trading. Those trying to become a commodity or oil trader should know that patience is the key to success.
The successful traders analyze the market in different time frames. Sticking to the daily chart might not be a good option for full-time oil traders. You need to analyze the 4H chart at times, as it can help you find the best possible trades.
4 Tips to Trade Oil in the 4-Hour Chart
This article will teach you the perfect way to take trade in the 4H time frame. Once you become good at analyzing the 4H chart, you will be able to trade oil like the pro traders.
Use manual trading tools.
You should focus on the manual trading method while looking for the trades in the 4H chart. People often get biased in favor of the indicators, EAs, and trading bots.
But such tools are used to filter out the trades. You are making a big mistake if you think you can trade the market with such tools.
You must carefully analyze the tools and make good trades with the perfect approach. Things might seem hard at the initial stage, but once you become good at analyzing the market variables, you can change your life without any hassle.
Learn to trade with the trend.
If you intend to trade the 4-hour chart, you must use the CFD trading account. The reason for which we are asking to trade with Saxo is the quality of the trading platform.
It is very hard to find the best possible trades without doing the analysis on a high-quality platform.
Things might seem hard at the initial stage, but once you start to focus on the core factor of the market, you will know that trading the 4-hour chart is not that tough. Use manual tools like the Fibonacci retracement tool, trend line tools, etc., and you will be able to make good trades.
Avoid trading the press conference.
Thousands of oil traders are losing money by trying to trade during press confidence. The price movement of the oil market becomes extremely volatile when OPEC arranges a press conference.
Even if you use the daily chart to analyze the core factors of the market, it will be a tough task to make a significant profit. Instead of taking risks, you should follow a conservative trading method while the market has high-impact news to digest.
Things might be risky initially, but once you learn to take trades with low risk or in a stable market, you will feel confident with the 4H trading method.
Revise your trading system.
You need to revise your trading method regularly, and only then will you be able to change your life.
Many people in the United Kingdom think they have the perfect trading method. But you need to revise your trading method regularly, or else it will be a tough task to protect your trading capital.
Revising the trading model is not that tough. Those who are using the 4-hour chart must revise their trading methods quarterly. By doing so, they can keep pace with the dynamic changes in the market and make some proper steps.
Oil trading in the 4-hour chart is an easy task, provided that you are following the tips of this article. Remember, the safe is a priority when you take any trades.
Avoid taking any aggressive steps since it can ruin your trading capital. Follow the safety protocols, and you will be able to change your life.