Breaking my rule if Oil drops to $15p/b

[MasterOfCoin]

The price of US oil has turned negative for the first time in history.

That means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May.

Demand for oil has all but dried up.

As a result, oil firms have resorted to renting tankers to store the surplus supply and that has forced the price of US oil into negative territory.

The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 a barrel.
- driven in part by a technicality of the global oil market. Oil is traded on its future price and May futures contracts are due to expire on Tuesday. Traders were keen to offload those holdings to avoid having to take delivery of the oil and incur storage costs.

Now if only I had somewhere to store it ...

😜

 

[Nowler]

The price of US oil has turned negative for the first time in history.

That means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May.

Demand for oil has all but dried up.

As a result, oil firms have resorted to renting tankers to store the surplus supply and that has forced the price of US oil into negative territory.

The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 a barrel.
- driven in part by a technicality of the global oil market. Oil is traded on its future price and May futures contracts are due to expire on Tuesday. Traders were keen to offload those holdings to avoid having to take delivery of the oil and incur storage costs.

Now if only I had somewhere to store it ...

😜

Nevermind trading!
Storage is where the money is at!!

I wonder if Trump asks nicely, will the Mexicans pay to build storage instead of "The Wall"

This is fascinating!
NEGATIVE!

 

[new_trader]

Will there be a war in the Middle East over storage space?

 

[cantagril]

Will there be a war in the Middle East over storage space?

I remember some years ago when there was another comedian in the White House that it was held that he used to lament that he couldn't "understand what our oil was doing under their sand" ....perhaps the current recumbent is now wondering "what their oil is doing in our storage facilities"...

 

[Nowler]

Will there be a war in the Middle East over storage space?

I remember some years ago when there was another comedian in the White House that it was held that he used to lament that he couldn't "understand what our oil was doing under their sand" ....perhaps the current recumbent is now wondering "what their oil is doing in our storage facilities"...

SOMETHING'S gotta happen anyway.
the next 4 weeks will be crucial!

 

[cantagril]

SOMETHING'S gotta happen anyway.
the next 4 weeks will be crucial!

Rest assured Nowls, it will. Just remember, we're living through history, which as we know, is just one damn thing after another.....

 

[counter_violent]

A sobering lesson in markets over mind.

 

[postman]

June contract $15.89
You long again?
This is my favorite contrarian indicator.

 

[Nowler]

Rest assured Nowls, it will. Just remember, we're living through history, which as we know, is just one damn thing after another.....

A sobering lesson in markets over mind.

The concept of oil trading in negative is something I couldn't fathom...
Looking at it now.,. why am I surprised? Bonds have been doing it for a while now.

I took this oil position on, and never even considered it trading at minus.
Granted I am spreadbetting, and the negative trading was the May Futures contracts... but still... something that was humbling to see.

June contract $15.89
You long again?
This is my favorite contrarian indicator.
View attachment 278438

I am still long and accumulating more units.
I have 1 more long entry order down around the $10.50 level.

My horizon allows me to hold this position for the mid to longer term.
I accepted that it would likely drop in price a lot more when I entered.
I didn't want to short as I felt for me it was like blindly (and deafly?)picking pennies up on an active rail line.

I understand the importance of oil more than I understand how low it could go - hence my longer trade horizon.
Can I even call it a trade if it's for 6 to 12 months? lol

 

[postman]

The concept of oil trading in negative is something I couldn't fathom...
Neither would I (and a few million others) have done until yesterday.
Looking at it now.,. why am I surprised? Bonds have been doing it for a while now.

I took this oil position on, and never even considered it trading at minus.

I didn't want to short as I felt for me it was like blindly (and deafly?)picking pennies up on an active rail line.
I agree your trade seemed to have a good R/R

...
Can I even call it a trade if it's for 6 to 12 months? lol
Put it this way you can only call it a profit / loss when you close!

The concept of oil trading in negative is something I couldn't fathom...
Neither would I (and a few million others) have done until yesterday.
Looking at it now.,. why am I surprised? Bonds have been doing it for a while now.

I took this oil position on, and never even considered it trading at minus.

I didn't want to short as I felt for me it was like blindly (and deafly?)picking pennies up on an active rail line.
I agree your trade seemed to have a good R/R

...
Can I even call it a trade if it's for 6 to 12 months? lol
Put it this way you can only call it a profit / loss when you close!

We live in crazy trading times.

 

[ffsear]

The concept of oil trading in negative is something I couldn't fathom...
Looking at it now.,. why am I surprised? Bonds have been doing it for a while now.

I took this oil position on, and never even considered it trading at minus.
Granted I am spreadbetting, and the negative trading was the May Futures contracts... but still... something that was humbling to see.






I am still long and accumulating more units.
I have 1 more long entry order down around the $10.50 level.

My horizon allows me to hold this position for the mid to longer term.
I accepted that it would likely drop in price a lot more when I entered.
I didn't want to short as I felt for me it was like blindly (and deafly?)picking pennies up on an active rail line.

I understand the importance of oil more than I understand how low it could go - hence my longer trade horizon.
Can I even call it a trade if it's for 6 to 12 months? lol

Were you spread betting the May contract or the spot price?

 

[Nowler]

The concept of oil trading in negative is something I couldn't fathom...
Neither would I (and a few million others) have done until yesterday.
Looking at it now.,. why am I surprised? Bonds have been doing it for a while now.

I took this oil position on, and never even considered it trading at minus.

I didn't want to short as I felt for me it was like blindly (and deafly?)picking pennies up on an active rail line.
I agree your trade seemed to have a good R/R

...
Can I even call it a trade if it's for 6 to 12 months? lol
Put it this way you can only call it a profit / loss when you close!

We live in crazy trading times.

Indeed!
Wildly fascinating and humbling to witness how fragile our economies are.
And we have not even peaked yet... we still have the recession and the increasing bankruptcies/unemployment yet to come!

In a way, I hope this is one massive blow out and then we sort our shit out. Reset at least to some degree.
I wholeheartedly believe we are doomed to repeat ourselves... cycles are just a apart of who we are.

At least for me, and IF we reset (whatever that means!), I don't have much savings and I'm still only in my early 30's. So if I lost all my savings in a big reset... then it's not that bad. Obviously those with more wouldn't feel the same way. Of course.

I just don't like the thoughts of papering over the cracks and each subsequent cycle being more volatile than the last. The Dot.com was bad, 2008 was worse (debatable) and this is going to dwarf both of those... what is the next one going to be like? lol... you gotta laugh... otherwise you'd cry

 

[Nowler]

Were you spread betting the May contract or the spot price?

Spot, I assume?
There is only spot and futures... right?
Because on my end it didn't drop below $15

But I didn't even consider that!
Didn't consider it at all...
Just when you think you are getting good, the market is like..."hold my beer"

I'll take the last 24hrs as a warning shot across my bow, and acknowledge that I am far from the finish article

 

[counter_violent]

Spot, I assume?
There is only spot and futures... right?
Because on my end it didn't drop below $15

But I didn't even consider that!
Didn't consider it at all...
Just when you think you are getting good, the market is like..."hold my beer"

I'll take the last 24hrs as a warning shot across my bow, and acknowledge that I am far from the finish article

Do us a favour.

Post a chart with your entry levels and an average of them all.
If the market gives you a get out, then i'd strongly suggest taking it!

 

[Nowler]

Do us a favour.

Post a chart with your entry levels and an average of them all.
If the market gives you a get out, then i'd strongly suggest taking it!

Get out!?
I don't see a reason to get out.
Worst case scenario, I lose a bit of pocket change and learn a valuable lesson.
That's a great worst case scenario...

The chart is attached and each entry is equal in units.
The average entry price is $21

 

[counter_violent]

I'm guessing that's the June Futures contract.
Price went sub $8 today ,so how come your $10 level didn't trigger?

 

[Nowler]

I'm guessing that's the June Futures contract.
Price went sub $8 today ,so how come your $10 level didn't trigger?

If you find out... let me know

 

[counter_violent]

If you find out... let me know

Nope not enough information and no idea why the lack of transparency.

Probably demo trades eh

 

[Nowler]

Nope not enough information and no idea why the lack of transparency.

Probably demo trades eh

Sorry, was playing Rocket League, hence the quick reply.

With the amount of money in the account, it may as well be a demo!

 

[barjon]

I took a long at 9.84 on the way back up, but chickened out quite quickly because it was all too frenetic for me, with the spread opening and closing to an alarming degree which added to the price volatility leaving my balance shooting up and down like a mad bungee jumper. Wish I’d had the courage to have stayed in