Crude Oil News From a Trend Followers Perspective
There is always the controversy regarding following the news or following the trend. Clearly crude oil is in the news with all the pressure & fears with Iran. Crude oil has made a strong move up from the mid $90 dollar range. This morning crude oil gapped up somewhat.
As a trend follower I took this trade last week not because of the news rather it was a break out trade. The buy was part of my plan which I have been trading for years. Crude oil was one of the strongest markets relative to all the other markets I looked at, I had no other trade in the energy sector and I was “attempting” to risk approx less than 1% of my account size to see if this trade will work. However I realize that I am not limited to only that 1% risk as there can be gaps or limit moves in which my losses will exceed that 1%. You can never fully detail your risk. The only certainty in trend following is uncertainty and there will always be losses. There are other filters as far as risk which were a part of my plan that were met.
The key is to follow a plan. I do not let news interfere or make my decisions. I would prefer not to trade with the news however I know that I do not know the future. Think about it, when one looks at charts in the past they do not know all the news that possibly could have impacted the prices… It could have been floods, frost, or whatever.
For me and all my years of trading, I try to keep it simple. I have an exact plan. I do not let the news either influence me or scare me to not take a trade. I suggest you trade in this methodology. I will be teaching a trend following course shortly. I invite you to be one of my students. I want to be your mentor. I want to teach you not to make all the mistakes I made. You have 2 choices; you can do what I did and work for 18 years trying to learn to develop a consistent money making strategy or you can read my material, having me available to help you and skip the almost 2 decades of a learning curve that I did.
You will learn how to think like a trend follower. If you want to learn how to trade for a living, I invite you to be one of my students.
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