Traders make money when price moves. So what trading instrument is volatile, highly liquid, and responds to news and fundamental data directly?
You got it. Crude oil.
I ran into this at danielstrading.com and thought it summarized the pros and cons quite succinctly.
If you’re interested in engaging the global crude oil complex, you need to be aware of these two futures contracts: North Sea Brent (Brent) and West Texas Intermediate (WTI). Although Brent is widely viewed as the international standard for crude oil, WTI has become the futures industry’s energy benchmark. Featuring an average daily volume of … (Read more). Making Money with CL Futures
The smooth running of society, and therefore the relative stability and peace of humankind, like it or not depends on the uninterupted flow of crude oil into markets. There are reserves, but the continued flow is critical.
The markets for Crude Oil (CL) reflect this tenuous situation, with the sensitivity to news and the volatility of price moves.
If you are trading WTI or Brent Crude, you need to nail the turning points. Position sizing and money management are also critical. Though with these in place trading CL can build your account balance rapidly.