I Made a Rookie Mistake…
I just made a rookie mistake…
One that cost me a good chunk of money.
As a seasoned trader I’m embarrassed to admit it.
But I’m willing to put my pride aside and share the story with you…
Because although my account may have suffered, I’m more sure than ever that my blundered trade will work out in the end.
Let me explain…
Oil’s Snowball Effect
It was the day after Thanksgiving.
The stock market closed at 1pm and trading volumes were very light. (After all, most traders had the day off to spend time with their families.)
This lack of trading volume meant that stock prices were touchier than normal.
On a day like this, if even a small number of investors got spooked, it could trigger a huge selloff.
That’s exactly what happened — and I got the short end of the stick!
You see, I’ve been bullish on oil’s rebound for some time now.
I just can’t resist battered industries, especially when I know they’re undeserving of the hate.
And for months oil prices moved higher and higher.
So, experience told me to put a trailing stop-loss on my trade to protect my gains in case the market backed off… and I assume many other oil traders had the same thought.
And wouldn’t you know… on that fateful day after Thanksgiving, worry over an upcoming OPEC meeting got some investors a little jumpy, which caused them to sell out of their positions.
When they sold, the thinly-traded market moved lower — triggering stop-losses to execute which sparked another wave of sells.
And then those sells moved the market lower, which triggered more sells…
You can see where I’m going with this.
In the end, I was flushed out of my trades.
And it couldn’t have come at a worse time!
Because despite shaving off November’s gains in one day…
Prices immediately recovered, sending oil prices back higher!
That’s right. The overblown retreat out of oil stocks was followed immediately by the rally I’ve been waiting for all along!
But while my rookie mistake made me miss out on this pop, it’s clear the industry is gearing up for huge gains.
And you still have a chance to catch it before it takes off!
Crude’s 2020 Catalysts Still to Come
The financial media wants you to believe that the crude oil market is doomed.
But I don’t like to pay too much attention to them… they profit from stoking fear.
The big worry is that our supply of oil surpasses the demand, which would naturally push prices down.
But 2020 promises to be a brand-new start for the oil industry — one where I think investors underestimate the growth in demand that’s coming for crude.
And about that OPEC meeting everyone was so worried about when oil sunk that fateful Friday?
Turns out the news was actually good!
OPEC and Russia agreed to cut oil production in order to boost prices.
Now oil is back up and testing that crucial $60 price point. And breaking any higher could mean an even bigger oil rally than we’ve seen in years!
The fact I was shaken out of profits is hard to swallow… but I’m more determined than ever to make sure YOU get a piece of oil’s ride to the top.
Make sure you keep an eye on this industry. The new decade could offer up an array of catalysts that’ll continue oil’s surge.
Yours for Weekly Profits,
Floor Trader, The Daily Edge