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Thursday morning last week: "Alexa, what's my brief?". As I was suiting up for work, I listened to a report coming in from India and EU, stating that the ongoing tensions between Ukraine and Russia will lead to an increase in oil and crude oil prices. An oil pipeline was shut down and imports of gasoline from Russia into the US will decline. So, I simply deposited money into an exchange and immediately placed my position in Oil by buying a few barrels.
As the day continued, our government announced an increase in fuel prices at 146 cents per liter and other increases might follow in April this year. Latest increases in prices of many products left South Africans on a slow cooking boilerplate and its time to fight back against commercial decay and inflation. How are we going to do it? We need to secure positions in the strategy, participate and take the profit. Hence, I came, I saw, I conquered.
What is no longer surprising to us? The manner in which governmental regulations and price-makers affect self-sustainable living, independence and liberty once there is an extra quid or two left every month in the average household for investment. It is bothersome for inept people to see how money they could have scooped up, leave their grasp. This is the end of the ranting, now to the investment itself:
We take a position in the oil market by buying barrels of oil at a price of $ 97,04 USD. This is a high price for oil, but bear in mind the latest news three days prior to the position.
The stop loss was set at $96.69 USD, but on this chart I have set it at $94.668 USD. The take profit limit was set at $ 120.00 USD. However I closed all my historic positions at $ 111.68 USD.
Now you may ask, how do you make 66% profit from this trade? Leverage and Margin is your answer. With enough leverage, margin and time in the market for a contract for difference, you are able to swing lots of money in a matter of days. For this trade, I held the position for nearly 24 hours. Without the leverage and margin, you would only have swinged around 17% profit during this time. You would obviously be able to make a lot more if you entered the market much earlier in 2020.
That's it folks. I see the oil price is still climbing, but I'd rather be safe than sorry. We are nearing the All Time High.
Although VKrum can do many things, being a financial advisor is NOT one of those things. You should not act based on what you have read in this article, but seek advice from professional financial advisors.
