Hello everyone, First-time poster, long time reader... I've been paper trading futures off and on and want to open up an account to trade crude oil... only problem is I only have a small amount to work with (6k). Any advice you could give? If I opened an account I would only trade a few times a week with only 1 contract due to my hectic school schedule. Also I would need a good broker.
You're too busy with other things on your plate to be trying to do real trading in Oil futures. In addition, you're undercapitalized. Simply, continue saving, learning and when school is finish...trade if you're ready. You may also consider trading in the summers only when you're not in school. If you ignore the above advice, the markets will tell you "I told you so". There's no rush, markets will still be here when you've completed school.
i agree you should stay away from intraday trading b/c you can't be in front of the computer all the time and no you're iphone doesn't count. smartphones are fine for anything other than daytrading. i suggest swing/position trading. you can set alerts to be notified on your phone when you're away from your computer. this way if you're in class you get a price alert and a news alert saying crude up $20 after surprise attack on iran by Israel and you stand up and shout b/c you're long CL options.
Definitely do not start trading. You will lose. It takes a lot of money and time before you turn the corner. $6k in savings is a lot for a young person starting out in the world but it is absolutely tiny in the world of trading, people will take that off you before you even have figured out how to open up a chart. Im not being one of these "nobody can make money in trading" moaners. You can make fortunes, but its a long road. If/when you manage to save up 15-20k i suggest starting with an instrument that has small trading ranges. You will last longer.
Better start with the currency futures,forget about Crude Oil.You gonna get freaked,guaranteed.Start with one contract 6B or 6E .
Go to oanda Deposit 100 dollars Treat it like a million. Do longer timeframes 4hr + while you do your school and other stuff. Adopt a methodology and tie all loose ends. This is just to get your feet wet and let you learn order types, get a feel for it ect. It takes years to learn this just like anything else worthwhile.
========= YesTinvestTrader; learn to trade, [stocks for example]before you leverage it. We all start out ignorant; so why leverage it/ignorance ??Not manyANY part time brain surgeons?????. Small capital is not a problem, that forces you to trade smaller. PS If you did not know anything about real estate, why borrow big=BIG mistake?????????????????????????????????????????? You do have enough for some trading books.
Thank you all for your replies. The 6k isn't my savings, but an amount I've saved over time from work and investing in the market since 2009 and currently have a brokerage account for the purpose of swing trading/investing. Some of you mentioned currency futures, would that be because the volitility of movement in currency is less than energy futures? I've paper traded the EUR/USD with great sucess earlier this year from Feb-May and even swing traded some of the leveraged currency etfs for those in my real account to make some $. I also have been paper trading CL for longer with a decent accuracy which is why I thought I could perhaps trade once a week with 1 contract to make a few bucks extra. I will hold off on opening a futures account as I know sizing is everything and can burn you royally.