Trading, in general, is very popular among people of every age, who are financially educated and aware, and today, we hear and read for a lot of different trading assets, including shares, cryptocurrencies, gold, goods, and of course, oil. But, how it became so popular? The global economic crisis and the additional crisis the coronavirus caused this year, made the people more interested in alternative sources of income. As you know, the whole world is “powered by” oil, since is the primary source of energy, and the most basic thing for all the other aspects of our lives can work out.
When we talk about the oil, we talk about the thing named crude oil, which is the raw and natural petroleum, composed of organic deposits. It can be refined and turned into fuel, gas, and other chemicals that are important for the general quality of our life. When we talk about it, we consider it as a fuel for every type of vehicle we are using for transport, but that’s just a tiny part – the bigger parts are plastic production, synthetic materials, fertilizers, microchips, and cosmetic compounds.
Before you decide to trade oil, you must be informed how to enter the market first, then the types of oils that are traded around, and the regional benchmarks that are used as a reference point, so you can track the prices and rates. The top producers in the world are the USA, Saudi Arabia, then Russia, Canada, and China, then Iraq, the United Arab Emirates, and of course, Brazil, Iran, and Kuwait. These countries also have proven reserves. Oil trading, as you can see on OilProfit, can be also performed online, by following the alerts in real-time, while you are at your home.
But, is it worth trying as an individual? Should you join some bigger community, so you can profit from it? Here are a few reasons why online oil trading is becoming so popular nowadays:
1. You can make a large profit
Oil trading is clear and combines volatility and leverage, which may generate exceptional profits. That depends on a few factors, including the economy, the season, pricing trends, the industry reports, and of course, the geopolitics. Sometimes the prices may spark up when you don’t expect it, but also, they may drop over the night, without giving any sign for that before.
2. It’s still the most popular energy source on this planet
There were wars about oil, and every barrel is important to our planet. First, the unrefined content comes from organic sources, that can later be refined and used for different purposes. The energy powering up depends on these barrels, and as soon as we realize how meaningful and crucial the oil is for us, we will completely understand how we can profit from it.
3. Trends can be determined easily
When it comes to the stock and crypto market, you can’t predict the trends, and how the prices will change over time. But, in this market, it’s easier for the investor to follow some pattern, and predict how the trends will change, or even estimate the price. There are many factors that may affect it, but experienced traders will know what things are affecting it most, and according to that, to calculate the rates.
4. You can train your patience
You can’t expect immediate results and becoming rich while you sleep. You must research a lot, learn new things, understand the whole market, and then invest. This whole process is very helpful for you to train your patience, but also to be bolder while making important decisions.
5. You are discovering a whole new world
You will learn what is supply, and what is demand, and how this precious liquid can cause tensions in some geographic areas. The demand, but also the supply, are the main factors that can affect the price. Also, you will learn where the bases are, how it’s transferred to the refining center, what is OPEC, who are the bigger suppliers, and so on. At the same time, you will have exceptional knowledge of which season is the most demanding when it comes to oil consumption, and why it’s highly demanded in the cold months. You also may learn which countries are the bigger consumers and is there any equally good alternative, that is useful for the households, and the whole of humanity.
6. You are learning advanced trading strategies
As we said, you must understand the market, in order to trade, and be successful. The cryptocurrencies aren’t stable enough to be a model you can learn from, and the same goes for the shares. But, the oil has a generally constant price, and as we mentioned, it can sometimes be precisely determined by simple math. Oil trading is a good chance to understand what is fundamental and technical analysis, and also risk management. After that, you are ready to adopt more advanced trading skills and still be completely successful as a trader.
7. And of course – the social media
You can’t trade directly by using your Facebook or Twitter profile, but surely you can go through the relevant hashtags and shared links, and find the content that is relevant to you and your interest. Most of the breaking news is first shared on social media, and then through traditional media, and you have a great chance to be the first one to know if there is something important happening.
Trading is not for everyone, and we are sure you are completely aware of that. It’s a risky business, and no matter how stable the oil market looks, it brings a lot of risks, and chances for losing big. On the other hand, the demand will be always huge, and there will always be something for those who want to trade. But, as we already said, you must take your time and learn the basics, because, without a piece of proper knowledge, you can’t even understand how the market works.