What energy market is the best for daytrading

Discussion in 'Energy Futures' started by Trader_Herry, Aug 18, 2006.

  1. In your own opinion:
    1) what commodity market give good volatility and good liquidlity, but smooth one-way trendiness at the same time (ie not swinging up and down most of the time)?

    2) what commodity market do you trade? And why do you trade them?

    Just list the conditions/situations or state your cases if your answer is a bit complex.

    Thank you. :)
     
  2. Miny Crude Oil (QM). Good volume and depth, good trending moves. And at 12.50/tick its actually worth your time.

    There is also a miny nat gas ( QN or QG). Looked at it for a while, but not as liquid as the QM.

    Just my take.
     
  3. if the volatility in oil futures is too much for you

    try trading USO ( OIL ETF ) for 100 shares or so
    while you practice your trading strategy

    :)
     
  4. There are many oil contracts, namely Light Crude Oil, miNY light crude, brent crude oil. Do you know what are their differences (in terms of trading, not nominal differences)? Why do you prefer QM instead of others?

    How about Gold and Silver etc.?
     
  5. Thanks for your suggestion.

    Voliatility is nice. I like it. If oil is not as crazy as HSI or DAX (they move very quick), it should be fine.
     
  6. I have always been afraid to trade commodities as I always think I am competing against a lot of people who are experts on this particular commodity. Is this unreasonable? Are many of you trading these things successfully on a purely technical basis?
     
  7. 2 Reasons:
    1) Its all electronic
    2) volume and the market depth are strong. Since it went back to globex, its was on NYMEX's platform, volume has picked up.

    If I'm understanding you correct, I believe the light crude oil ( the big oil contract) is traded in the pits. I stay away from that due to slippage, commissions, etc. I'm pretty sure they (nymex and cme) introduced an all electronic big contract, but I didn't look at it too much. There is also oil contracts traded on ICE (intercontinental exchange). I use Tradestation so I dont even have access to those charts, but I'm sure if you do a little research you can find out what you want about that.

    I've looked at gold and silver but never really appealed to me. I like to focus on oil, euro, and the mini-markets. Thats more than enough to keep me busy during the day.:)
     
  8. Oil without a doubt.
     
  9. Surdo

    Surdo

    Crude indeed.
     
  10. Thanks.

    Trading in the pit - no way. I need to trade online.

    I would like to trade electronic (big contract) since I earn more per tick, unless there are other factors which I forget to cnsider.

    Why do Gold and Silver not appeal to you?
     
    #10     Aug 20, 2006