The short trade in crude oil is getting very crowded and all the market news media keeps pointing to, is lower prices. Lower-for-longer is definitely the prevailing wisdom but for the trader, but the downside risk is definitely waning.
As a trader, always remember that analysts have the comfort of making predictions and then going about their day impervious to ultra-short term volatility, but traders don’t have that luxury. When you look at the ultra-short term risks, it is stacked to the side of quick spikes higher. One of the hardest lessons for a trader to learn is “trade what you see, not what you hear”. The news media in general, while providing an absolutely critical service to the public at large, is only useful to a trader for peace of mind and perspective. “Why” something happens in the market is so much LESS important than what has happened (price movement), yet traders are constantly calling each other and searching the web for the “why”. With crude oil really being one of the more simple “supply versus demand” markets, analysts can make predictions about the prevailing wind s of prices, with zero repercussions on the short term volatility. Nadex offers binary trading oil crude oil along with Nadex spreads, which are vertical debit options spreads perfect for crude oil’s current market state. With more potential upside (still limited to the spreads ceiling price) and limited risk, a trader can take positions that the short-term “what” of the, market and make the “why” of the market a hobby. Be a trader at Nadex. Let the analysts do victory laps about long term predictions that they never traded.
Futures, options and swaps trading involve risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results