• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 2 hours Oil prices going down
  • 18 hours We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 19 hours Another WTH? Example of Cheap Renewables
  • 6 hours What If Canada Had Wind and Not Oilsands?
  • 2 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 10 mins Sell out now or hold on?
  • 2 hours Two Koreas Agree To March Together At Asian Games
  • 44 mins Oil and Trade War
  • 18 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 17 hours The Permian Mystery
  • 11 hours China & India in talks to form anti-OPEC
  • 11 hours No LNG Pipelines? Let the Trucks Roll In
  • 2 hours Geopolitical and Political Risks make their strong comeback to global oil and gas markets
  • 6 hours Australia mulls LNG import
  • 2 days When will oil demand start declining due to EVs?
  • 2 days Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
Alt Text

The Permian Faces A Long Term Natural Gas Crisis

Bottlenecks in the Permian have…

Alt Text

Azerbaijan’s Pipeline Conundrum

Azerbaijan’s European pipeline project is…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

A Trade Idea Based Solely On Risk/Reward

As some may be aware, I spent nearly twenty years making a living in a dealing room. Contrary to what many believe, those who are paid to trade are, in my experience, not necessarily smarter or better educated than those who pay for the privilege. They have better, faster access to information for sure, and they also have the focus that comes from concentrating on one market all day every day, but it is possible for anybody trading at home to get the same info and to specialize. There is, however, one major thing that sets floor traders apart.

Their role as market makers means that they often end up with positions that they didn’t intend to take and that leads to a completely different focus when observing markets. Rather than look first at the entry point for a trade, most professional traders concentrate more on exit points. Rather than ask themselves “where should I buy this” they ask themselves “if I buy this here, where will I sell it?” That view sometimes reveals a short term opportunity that is too good to miss.

Sometimes that even means taking a position that you are not entirely convinced about from a fundamental perspective, just because the proximity to a logical stop loss level means that with even a moderate price target the risk/reward ratio is strongly in your favor. I would argue that that is the case right now with Natural Gas, or more accurately with the U.S. Natural Gas ETF UNG.

UNG hit a low last week…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News