WANT to trade energy futures? Here are three tips from Avtar Sandu, senior commodities manager at Phillip Futures:
KNOW THE BASICS
Research and understand the demand and supply factors affecting the commodity you want to trade in. Compare the historical inventory levels and prices over time.
HAVE A TRADING PLAN
Know your risk-reward ratio, so that your trades are viable. When the price breaks the support or resistance levels you had planned for, it is time to re-evaluate the strategy.
Traders sometimes want to get into the market for fear of missing the boat. It pays to be patient when deciding when to enter the market, and when to close your trading position.