How to invest in crude oil?


Crude oil investment is becoming increasingly popular among investors. As a beginner in crude oil, how to make money by investing in crude oil is a problem that needs to be explored because crude oil investment is a relatively complex problem.

Crude oil investment has become increasingly popular among investors. As a beginner in crude oil, how to make money by investing in crude oil is a question that needs to be explored, as crude oil investment is a relatively complex matter that involves knowledge in platform selection, position management, message analysis, technical analysis, fundamental analysis, arbitrage, and other aspects. Novice investors in crude oil will only understand how to make crude oil by mastering these knowledge points. Investors need to know what factors will affect the production of crude oil while exploring how to make it. I have already come to explain it in detail.

crude oil

How to make crude oil What are the following points that investors need to pay attention to?

1. How to Choose a Crude Oil Platform

A formal crude oil trading platform is an important prerequisite for ensuring the financial security of crude oil investors. Investors can compare it from aspects such as regulatory agencies, fund security, deposit and withdrawal, trading software, trading environment, platform services, etc. Investors can verify multiple dimensions and choose their preferred platform when making a choice.

2. How to manage the position of crude oil

There are many methods for risk control in the process of crude oil investment, such as stopping profits, stopping losses, position management, and so on. So the first to bear the brunt is the management of positions. Position management is a double-edged sword that, when well controlled, enables traders to easily move in and out of crude oil speculation. Poor control may result in significant losses for traders.

3. How to analyze the news about crude oil

The news that mainly affects the trend of crude oil includes the OPEC monthly report, the US nonfarm employment data report, and the EIA inventory data report. The OPEC monthly report is released from 6 p.m. to 8 p.m. Beijing time, which has a relatively significant impact on the mid-term trend of oil prices. Generally speaking, on the day after the release of the OPEC monthly report, the average amplitude of oil prices is large, and the market is very sensitive to news. During the monthly report period, there is generally no significant fluctuation in the market on the same day. Investors can follow the trend based on the news in the meeting and make good stops to achieve good returns.

4. How to analyze the technical aspects of crude oil

Crude oil technical analysis, also known as crude oil technical analysis, is the process of analyzing the current market trend, shape, K-line, golden section line, and other indicators to determine the rise and fall of the market. Investors need to analyze the trend, make corresponding strategies, and not predict the market. The specific analysis of the actual crude oil market can be based on both fundamental and technical aspects. The mainstream analysis method in the market at present is to analyze the supply and demand relationship, and the frequently followed news is about OPEC member countries and changes in crude oil reserves in each country. The technical analysis is the same as for other investment products, analyzing and judging the trend of the K-line and portfolio form.

5. How to conduct a fundamental analysis of crude oil

There are many fundamental factors affecting oil prices, one of which is the U.S. dollar index. Generally speaking, the U.S. Dollar Index is the leading indicator of crude oil prices, and the correlation between the two is very high. That is to say, a rise in the US dollar means a decline in the crude oil probability rate. Similarly, the Euro index and crude oil are mostly positive. If the trend of the US dollar is in the same direction as that of crude oil and the deviation is too severe without news support, there will be arbitrageurs who long the US dollar and short crude oil to earn profits.

What factors will affect the production of crude oil?

1. U.S. Dollar Index

The economic policies of the United States will significantly affect crude oil prices; for example, the United States intends to control the world through the peg system between the US dollar and crude oil, and the vast majority of crude oil prices today are priced by the US dollar. So, all policies that can affect the US dollar will indirectly affect crude oil prices. Generally speaking, the appreciation of the US dollar leads to a decrease in crude oil prices, while the depreciation of the US dollar leads to an increase in crude oil prices. The two show a certain degree of negative correlation, while gold shows a certain degree of positive correlation with crude oil. However, this correlation has decreased significantly compared to the previous century. The economic policies of other important countries also have a certain impact on crude oil prices, such as the use of RMB for delivery of crude oil futures at the Shanghai International Energy Center, and China's important economic policies will also have a certain impact on crude oil prices.

2. The supply and demand relationship of crude oil;

3. Geopolitics and War

4. Changes in crude oil inventory;

5. Intervention by important organizations;

6. The short-term flow of funds in the international capital market;

7. New energy development to replace crude oil

What does a long position?

What does a long position?

A long position involves holding a bullish stance, anticipating market or asset price increases. Strategies like alignment, divergence, and hedging are employed, with attention to reversal patterns such as head-and-shoulder bottoms.

What is the status of the volume-price relationship?

What is the status of the volume-price relationship?

The volume-price relationship is a key stock market indicator, revealing the correlation between trading volume and stock prices. Analyzing these changes helps investors understand market activity and potential trend reversals.

What is delisting?

What is delisting?

Delisting removes a stock from public trading. It's either voluntary or mandatory, due to violations, financial issues, mergers, etc.