How to trade at the highest price on the market
The price of oil has plummeted to an all-time low as investors flee from riskier options and fear the market is headed for a crash.
Here’s how to trade oil at the lowest price possible in a trade that can help you reap the rewards of low volatility.
The best way to trade low is with low volume and low fees.
It’s easier to get in and out of a trade at a low price than it is to get out and buy oil at a high price.
That’s because there’s less opportunity for volatility.
Low volume means lower fees.
Traders often pay a small fee for trades, but they can save tens or hundreds of dollars if they have to wait until the last minute to make a trade.
That means you can get in a low volume trade and then make it cheaper than the lowest volume you could make at a higher price.
If you can’t make the trade, the next best option is to trade more often.
If that sounds like you, that’s because low volume traders tend to get lucky.
When you make a small trade, you’re guaranteed to make more profit if you make another trade, says Scott Anderson, chief executive of the U.S. trading firm Trading Economics.
If a trade looks too good to be true, it probably is.
“If you don’t make a good trade, it’s likely you’ll make a bad one,” Anderson says.
And a lot of people make bad trades, too.
That makes it difficult to get a good return.
The price you pay can have a big impact on how much profit you make.
If your bid is $5 per barrel, you’ll be able to earn more than $100 per trade, but the price of that oil will go down $10.
It can also lower your profit by about 15% if you buy it at a discount.
The key to a low cost trade is timing.
You don’t want to make your bid too high and then miss out on the profit, because the price will fall.
That can hurt you later.
But if you wait until you know your price before making a move, you can make the right move and make a profit.
You have to take advantage of market volatility.
If prices drop, you may not have enough capital to make the profit you want.
That also means you may have to pay more than you expected to make, especially if you were making a low bid.
You must make the most of your money in a single day.
A low volume trading strategy can be very lucrative.
That could mean you’re trading more often and getting more profit, says Jeff Hanes, chief economist for financial services firm Piper Jaffray.
Don’t worry about getting caught.
Trading at a lower price can help your portfolio recover if you’re forced to sell or lose your position.
If so, it could also help you avoid paying penalties or interest on the money you’ve made.
Keep your money on a cash basis, because volatility can eat away at it.
“It’s really hard to recover,” Anderson said.
“You can’t just walk away from a bad trade.”
-By CNBC.com’s Ben Thompson.
Follow him on Twitter at @BenThompson_CNBC and on Facebook at facebook.com/BenThompsonCNN.