Step-by-Step Guidelines on How to Start Making Profit in Crude Oil Trading

Crude oil trading is a profitable and vibrant financial market that offers many opportunities to earn profit. However, it’s essential to enter this market with cautiousness and a well-planned strategy. 

Step 1: Education and Researc

Before plunging into crude oil trading, educating yourself about how the market works is vital. 

Understand what factors influence oil price forecast and the relevant instruments such as futures contracts and options. You can attain knowledge through books, online courses, or by looking for guidance from experienced traders.

Step 2: Create a Trading Plan

A clearly outlined trading plan is essential for success in crude oil trading. Your plan should outline –

  • Goals, clear strategy, and risk tolerance
  • Trading style – day trader, swing trader, or long-term investor
  • Specific entry and exit criteria for your trades and set stop-loss orders to manage risk

Step 3: Choose a Reliable Broker

Selecting the right broker is crucial to your success as a crude oil trader. Look for a broker with a solid reputation, low fees, and a user-friendly trading platform. 

VSTAR is an excellent example because it offers access to the crude oil market through futures or options contracts. 

Besides, their regulatory status is legitimate, and no hidden fees exist.

Step 4: Practice with a Demo Account

Before risking real capital, practice your trading strategy using a demo account provided by your broker. This will help you gain experience and confidence without incurring losses. 

Demo accounts are even for seasoned traders because they allow them to try new strategies without losing money. 

When you read about gold trading tips, you will find that experts advise traders to try their new skills on demo accounts first. 

Step 5: Risk Management

Effective risk management is vital for traders to succeed. 

  • Determine the amount of your trading capital you can risk on every transaction and stick to it. 
  • Set stop-loss orders to limit potential losses
  • Portfolio diversification for spreading the risk

Step 6: Technical and Fundamental Analysis

Use both fundamental and technical analysis to make profitable trading decisions. Fundamental analysis focuses on understanding supply and demand factors, geopolitical events, and economic data that can impact oil prices. 

Technical analysis includes studying price graphs and indicators to identify potential entry and exit points.

Step 7: Continuous Learning and Adaptation

The crude oil market changes frequently. It depends on variables like supply and demand, inflation & recession, political disturbances, natural calamities, etc. 

So, stay updated about geopolitical events, market news, oil production changes, and more. It will help to tweak your trading plan and adapt to changing market conditions.

Step 9: Psychological Discipline

Trading is hard on your emotions, especially when you experience losses. Develop trading discipline – stick to your trading plan and avoid impulsive decisions driven by fear or greed. Emotional stability is a critical factor in long-term success.

Step 10: Evaluate and Improve

Regularly review your trading performance and keep a trading journal. Analyze your successes and failures to identify areas for improvement. 

Adjust your strategy as needed and be patient – success in crude oil trading often comes with time and experience.


Crude oil trading has the potential to offer traders substantial profits, but it also carries significant risks. 

It is sensible to gain education, develop a robust trading strategy, prioritize risk management, and stay disciplined. 

Refine your approach based on market conditions to increase your chances of succeeding in the crude oil trade market.