Stop Day Trading Oil

I’ve been day trading oil all week with tide stops and taking profits as little as $.50. This is hard work. I have to actually sit in front of the monitors all day to make very little money. As oil stabilized around $50 I think I can prepare to pick a direction and trade it long term. I’m in the camp of people who think oil is heading back to above $100. The questions is will we see $40 or even $30 before we see $100. Some big bets have been made on both directions. I’m going to deleverage a bit by closing some currency positions and prepare to buy oil contracts. Deleveraging gives me more headroom to absorb loss…lesson learned form the investment banks. I want to be fully prepared to take a big hit before oil bounce back. I usually like to buy in the up swing: buy high and sell higher. But this one is different, the bounce may be volatile and there are money to be made on both side of the V curve.

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