A buy signal only tells you is almost time to buy, but cannot tell you the exact point to buy. So to resolve this issue is to buy 1 lot first, and then place a stop at comfortable level.
On a normal day, oil price flutuate from $3 - $5, so I think $5 stop is a reasonable level.
So how much does $5 means in dollar terms?
a) For normal oil futures, value of 1 point represents US$1000, so $5 means US$5000 => I can't afford that.
b) For mini oil futures, value of 1 point represents US$500, so $5 means US$2500=> Too high to stomach.
c) For super mini oil futures, value of 1 point represents US$100, so $5 means US$500=> Comfortable with the amount.
I bought 1 lot of super oil mini at 123.58.
Place a GTC stop at US$119
Initial target level at US$128
1 pt represents US$100
If you are interested to trade super mini oil contract, click here. Choose Standard account in account opening, Mini account can only be used for trading mini forex.
1 comment:
Hello,
I recently started to look into trading mini crude oil futures. Your post about the Forexyard was very nice. I reviewed their web site and found them to be probably an honest firm.
Amin
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