I used to trade stock indexes and around the holidays things can get pretty quiet in the stock indexes. Often the ES Emini S& P contract will only trade in a range of about 7 handles or so for the whole day. If you are an intraday trend trader this can be horrible to trade in and you are often risking 2 points to try to get the same.
In Crude Oil the action does not stop for holidays or anything else for that matter. It is the king of all intraday markets and provides ample opportunity at just about any time.
As of today, the average 30 minute bar in Crude Oil over the last 10 days is 70 ticks (about $700). For the Emini S&P it is about 3 (about $150). This means Crude Oil has more than 4.5 times the opportunity over the ES in any given half hour. The TF Russell futures are at 3.7 points per 30 minute bar right now ($370), roughly half that of Crude Oil. Why trade anything else?
Just as interesting is the Daily Ranges which paints a picture of the opportunity for catching a trend:
The ES is at about 11.6 points per day average range over the last 10 days (about $580 per day).
The TF futures are at about 16 points per day (about $1600 per day).
Crude Oil is at about 2.79 or $2790 per day.
These measures tell you the total potential for each of these markets on any given day. There is more potential in Crude Oil in 30 minutes ($700) than there is in the ES all day ($580). Better yet, the commissions in crude oil are less on a bang-for-your-buck basis.
Another benefit of trading in Crude Oil is the learning curve is accelerated. Because there is so much more action in this market you get more experience faster and it is more fun to trade.
Use caution however. Trading Crude Oil is not for everyone. It can be fast and furious and you don't want to do it on a tiny account (for this use the QM half contracts to help manage your risk).
Come Join us in the Oil Trading Room. The skills you will learn there can be translated to any market and you can benefit from the quicker learning curve Crude Oil provides.
Take a look at our reviews page to see how this great learning environment has benefitted so many traders!
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