Current price at US$128.21
Unrealised gain: US$463
Place a GTC stop at US$124
Initial target level at US$135
1 pt represents US$100
Raises your stop level above your cost as oil price rises higher. This way you will guarantee a profit even in the worst senario. My cost is US$123.58, now I had set my stop at US$124, which is above my cost price. This means that even if oil price plunged unexpectedly to 120, my oil contract will still get sold around US$124.
On a normal day, oil price flutuates between $3 - $5, so I use $4 buffer to allow volatility. This means when oil price is trading at US$128.21, I'll not put a stop at a price higher than 124.21.
This is how I limit my downside while letting my profit runs. Futures trading is not as risky as most people think as long as you have a system.
If you are interested to trade super mini oil contract, click on the "Oil and Gold" advertisement located on the top right hand corner of my blog. Choose Standard account in account opening, Mini account can only be used for trading mini forex. Demo account is available.
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