Many who were affected by the reduction of offshore jobs in the previous market downturn have only recently found themselves being re-employed into oil and gas jobs, and so this new downturn is absolutely devastating not only their future and quality of life but also their morale.
If you, like many others, have been affected by the decline in offshore jobs then don’t worry, hope is not lost, and this isn’t the end. We may not be offering oil and gas jobs, but we are offering a possible solution to your current predicament.
The market has crashed, and offshore jobs are few and far between, but working in the industry isn’t the only way you can make money from it. Traders like us are still extracting a profit from the oil markets while oil companies themselves are going bust.
While the industry is suffering and offshore jobs are becoming more and more limited, take advantage of this opportunity to add a new revenue stream to your total income. There’s no guarantee that oil and gas jobs will return, many energy companies may see this as a prime opportunity to expand into other areas of energy generation that don’t have the same limitations as the oil and gas industry.
Have You Been Directly Affected by The Large Reductions in Oil and Gas Jobs?
If you’re one of those directly affected by the reduction in oil and gas jobs, then we urge you to get in touch. There’s no time frame on when offshore jobs will return, or when the markets will pick back up to previous levels. Securing yourself financially is your number 1 priority right now, and we want to help.
Give us just 15-20 minutes of your time to show you exactly what we can do for you and your family. You may have worked offshore jobs all your life, and the prospect of not being on the rigs may be unsettling to you, but you can adapt and overcome this crisis. You can beat the market downturn at its own game through trading the markets.
Even if it’s only to make ends meet in the interim between now and when the number of oil and gas jobs might pick back up, it’s worth just 15-20 minutes of your time to find out whether it’s something you can use. You may even decide after a few months of trading that you’d much rather be at home with your family than on the rig for weeks at a time working 12-14-hour shifts. Set aside just 15-20 minutes today, and let’s talk about your current situation, and what we may be able to do for you so that we can help you get back to some semblance of normality.
How Experience in Offshore Jobs Can Help You in Other Areas
Your experience in any and all offshore jobs you may have had are invaluable assets that currency and commodity traders would envy, as you’ll have a much deeper hands-on understanding of the industry, and will better understand fundamental events, such as the oil storage shortages that we see now.
Once oil and gas jobs start becoming more and more available and you go back to work, your trading career doesn’t have to end. Many oil and gas workers have a good balance between their work life and their trading life.
The Effect of Coronavirus on the Financial Markets
By now it is accepted common knowledge that the COVID-19 pandemic crisis is having a severe adverse effect on economies and financial markets throughout the world. The DOW has dropped from a high of 29,409 on February 13th to a low of 18,086 on March 23rd. That is a 39% drop in about a 5-week period. On April 20th, 2020, crude oil futures (CL) dropped to a low of -40.32. Both of these events are unprecedented and are driven purely by fear and uncertainty caused by the COVID-19 crisis, and rightly so. But where many may see this as a “doom-and-gloom” scenario, there are traders and investors that see these extraordinary financial events as an opportunity and have capitalized on them and will continue to do so.
DAILY CHART: DOW30
With respect to the financial industry, most laypeople are intuitively familiar with what trading stocks entail. But when posed with the question “What is commodity trading,” and even more specifically as it applies to crude oil trading, most folks immediately revert to the limited knowledge they have about trading stocks and attempt to apply it to commodity trading, which is of course incorrect. Although many of the general principles used for trading and investing are commonly used amongst all types of markets, commodity trading and investing have its own set of unique characteristics that must be dealt with differently from other markets in order to be profitable. Even within the commodity market itself, each different commodity exhibits market characteristics that are exclusive to each individual commodity. A trading strategy used to trade crude oil, for example, may not fare well if used to trade lean hog futures or gold futures. Although all three are commodities, the factors that drive market prices for each widely differs, therefore the trading/investing strategy used for each must account for these differences.
Of all the world’s commodities markets, the oil and gas markets contain many characteristics that make them favourable for both short-term trading and long-term investing. From a commodity trading perspective, the oil and gas markets are some of the most liquid markets in the world. The demand for crude oil and natural gas is worldwide, highly inelastic, and continues to grow as societies and countries become more advanced and consequently more dependent on energy. These commodities are highly ubiquitous throughout societies. Not only are they used as fuel to generate electricity and power vehicles, ships, and aircraft, they are also used to manufacture over 140 products such as plastics, textiles, and many grooming chemicals just to name a few. Another important factor is the pervasiveness of the Oil and Natural Gas industries. In almost all countries throughout the world, oil and gas jobs, or related jobs are a significant sector in the labour market. Human civilization would not be able to function and maintain its current trajectory without these commodities.
Although there are some alternative energy sources including solar, wind, and hydro-electric power, etc., none of the energy alternatives possess the flexible adaptability and cost-effectiveness that oil and natural gas can offer. Until such time as a suitable, practical, and cost-effective source of energy is discovered or invented, there will be a constant demand for crude oil and natural gas. Most industry experts would agree that a significant shift away for crude oil and natural gas as a source of energy will not happen for the foreseeable future.
Even in today’s challenging financial times, once the COVID-19 crisis abates to a point where world economies are restored to full capacity and resume growth, strong demand for oil and gas will once again be the norm and trading and investment opportunities in the oil and gas markets will be plentiful.
Is Trading Oil Profitable?
Trading and/or investing in any market has the potential to be profitable if done correctly and with discipline. Crude oil trading is one of many money-making opportunities in the commodities markets on which traders can capitalize. The combination of the long-term viability and the consistent daily volatility of the oil and gas markets makes them suitable for both short-term trading and long-term investment. For short-term traders, there are oil and gas futures, options, and CFD (Contract for Difference) markets available and all offer very tradable markets for crude oil trading and natural gas trading using multiple exchanges worldwide. Traders can trade crude oil 24-hours per day, 5- days per week. All the markets for commodity trading are generally very liquid and market data is easily accessible. All exchanges and most reputable brokers around the world that offer standard oil and gas futures, options, and CFD contract products are regulated and financially stable therefore avoiding the risk of malfeasance or fraud.
DAILY CHART: LIGHT CRUDE OIL FUTURES
The daily chart above showing the light crude oil futures market for 2018 and 2019 indicates that the individual futures markets for crude oil exhibit ample daily volume and volatility needed for short-term intraday crude oil trading by scalp traders and swing traders to capture small profits resulting from news events or announcements of fundamental or economic numbers that impact the oil and gas markets. For inter-day traders that take advantage of larger price swings, the chart clearly shows that the supply and demand associated with crude oil trading are susceptible to sustained price movements that can be used to captured larger profits using quantitative trading techniques.
Watch this video: How to trade the oil markets? (02mins 30secs)
While oil and gas derivative instruments such as futures, options, and CFD contracts allow traders to capitalize on short-term price fluctuations on both the long and short side by assuming direct exposure oil and gas prices, they are not as well suited for long-term investment. For the long-term investor, the oil and gas markets also provide a wide variety of investment vehicles to suit different investment objectives. There are over 275 oil and gas corporations that are listed in the US stock markets alone. These corporations span the entire gambit of investment vehicles from two that are components of the DOW30, and 25 that are listed in the S&P 500, to companies that are penny stocks that are listed on the pink sheets. Some are very stable investment stocks that pay regular dividends while others are high growth stocks that are more volatile and carry a higher risk. Exchange-traded funds and indices that are oil and gas specific are also well-suited financial instruments for long-term investment. Many of these corporations also offer corporate bonds for investors that have a greater propensity for fixed-income investments.
Becoming a Commodities Trader
The path to becoming a commodities trader is an endeavour that requires perseverance and discipline. There is more than one path to becoming a commodities trader. For those that decide on this career path as a professional commodities trader while still in college, a degree in finance, economics, or mathematics is extremely helpful in building a strong foundation of knowledge on which to become a successful trader. Graduation is usually followed by an internship or training program at a commodities brokerage for up to 2 years. Once fully trained and trading competence is achieved, a successful professional commodities trader can earn a base salary well into 6 figure territory, and bonuses can increase incomes to near $200k levels.
Professional traders that are highly successful will ultimately leave the firms that they work at and will start a proprietary trading operation to manage investor’s funds for a fee, or trade their own capital, or both. The income potential at this level is limited only by the amount of capital under management.
There is an alternative path for those that want to trade commodities but did not choose to pursue it as a primary career. With today’s technology and available financial services, anyone can open a trading account and have access to the same markets that professional traders do. However, becoming profitable at trading is not something that just arbitrarily happens. Trading is a skill; and just like any other skill, it needs to be developed. Developing trading skills requires knowledge, discipline, and time.
The internet is abound with knowledge and resources on learning how to trade. From tutorials to videos, to full-fledged formal training programs, at all levels from beginner to advanced, knowledge resources are available for aspiring traders to learn. A trader must learn the basic fundamentals of markets, investment, and trading. The amount of knowledge is vast, but it’s not necessary to learn everything before a novice trader can begin trading. Once the basic fundamentals are mastered, then learning about the markets becomes a lifelong process for a trader.
Discipline is a key element of becoming a successful trader. For most other vocations, a job is performed by a worker, and the worker that successfully does the job gets paid. If the worker does not successfully complete the job, then the worker does not get paid. With trading, however, an additional element is introduced in that if a trader is not successful, not only does a trader not get paid, losses are incurred. This introduces an element of risk and fear of becoming a trader. Fear is one of the most powerful human emotions and is very difficult to control. Successful trading requires rational decision making at a moment’s notice. Once emotion takes control of a trader, rational thinking ceases, and ultimately losses are incurred. This is why discipline is paramount. Lack of discipline and the inability to control emotions when trading is the main reason why aspiring novice traders fail.
For those that make the commitment and take the time to acquire the knowledge and develop the necessary discipline and trading skills, trading in commodities, or any market, including the oil and gas markets, can be a very lucrative venture. No matter how bad things may get from the prevailing crisis, the markets will not cease to exist, and more volatility creates more opportunity for traders.
If you’ve recently started commodity trading, and you’re interested in advancing your commodity trading to the next level, then simply get in touch. It is our passion to help traders reach their full potential, and the commodity trading market can be an incredibly lucrative one, once you understand how to trade the various different commodities on offer to a professional level.
If however, you would like to focus solely on crude oil trading, then we can help there too. Crude oil trading is a magnificent opportunity that comes with many benefits, one of which being that it’s a starting point to trading other commodities such as precious metals. If you’d like to experience what crude oil trading is like at a professional level, then sign up for our free consultation, and we’ll take you through exactly what trading commodities and various currency pairs is like for a professional trader.
It’s important to always have a trading strategy when navigating the markets, let us help you fine-tune yours to maximise your success in the markets.
The Platinum Formula:
Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade
The Platinum Way
At Platinum Trading Academy, United Kingdom, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.
If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.
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Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day!
Live from the Platinum Trading Floor.