Cast your minds back.. Oil Falls to MINUS Value. People are just giving barrels away instead of paying to store it. The value absolutely Wiped out because of fear and mass selling.
Many Traders at this point got extremely scared and thought it was NOT time to buy into oil (In many ways) and all was over. The fact is, despite the price being extremely low and cheap and the world relying on Oil Traders Said No. I don't want it. Its too cheap and I'm not interested in buying it..
Then we saw it RALLY and boy did it go high fast. Demand soared and the price of Oil raised dramatically.
Now here is where it gets interesting (And where you can actually learn an extremely important lesson for next time). In fact, this actually happened on my Trading Posts.
When you Talk about getting short on an asset that is reaching extreme price highs and is rallying Traders who do not know what they are doing say you are mad. They reflect on the fact that they are worried about what a price rise means and how to deal with it.
Sometimes, it's better to just have a plan for things like this. At the moment you are seeing in across various different asset classes and its a similar story. They will fall .They will Rise. Your job is to judge risk before ANY move and scale into the market.
Was Oil going to rally forever? No.
Were Traders going to step in and short the hell out of the highs? Yes.
This happens time and time again. Simply believing that prices will never come down is incredibly risky in itself.
Yes, Markets may seem to present risk but it does NOT mean you can't trade them so long as you are doing so within your means of capital. Oil rose fast and violently, but if you had shorted sensibly you would be out for gains on every position and you could have incorporated REAL Risk Management Strategies to cope with it (Hedging/adding/Taking away) Methods.
So the lesson is, when something is crazy cheap, buy it. When something is crazy high, sell it. This is the natural way of any market and why you should be buying low and selling high.
It is now up to you to make the Right decision next time!
Many Traders at this point got extremely scared and thought it was NOT time to buy into oil (In many ways) and all was over. The fact is, despite the price being extremely low and cheap and the world relying on Oil Traders Said No. I don't want it. Its too cheap and I'm not interested in buying it..
Then we saw it RALLY and boy did it go high fast. Demand soared and the price of Oil raised dramatically.
Now here is where it gets interesting (And where you can actually learn an extremely important lesson for next time). In fact, this actually happened on my Trading Posts.
When you Talk about getting short on an asset that is reaching extreme price highs and is rallying Traders who do not know what they are doing say you are mad. They reflect on the fact that they are worried about what a price rise means and how to deal with it.
Sometimes, it's better to just have a plan for things like this. At the moment you are seeing in across various different asset classes and its a similar story. They will fall .They will Rise. Your job is to judge risk before ANY move and scale into the market.
Was Oil going to rally forever? No.
Were Traders going to step in and short the hell out of the highs? Yes.
This happens time and time again. Simply believing that prices will never come down is incredibly risky in itself.
Yes, Markets may seem to present risk but it does NOT mean you can't trade them so long as you are doing so within your means of capital. Oil rose fast and violently, but if you had shorted sensibly you would be out for gains on every position and you could have incorporated REAL Risk Management Strategies to cope with it (Hedging/adding/Taking away) Methods.
So the lesson is, when something is crazy cheap, buy it. When something is crazy high, sell it. This is the natural way of any market and why you should be buying low and selling high.
It is now up to you to make the Right decision next time!
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bit.ly/willsbpa
Free Discord Secret Server:
bit.ly/bpadicsord
Daily Mentoring On Zoom:
bit.ly/prottm
Posts Not financial advice.