Natural Gas Still Under The Weather

I know there are some traders who are expecting a rally since prices are at the low end of the historic range. A good argument could be made for buying gas around $2 and selling up around $2.50. That could very well be a trading range for a while. I would prefer to just play the short side of this market regardless of how low prices appear from a long term perspective.

There is also the strategy of scale trading this market. That is the process of buying at/near historic lows and adding to positions at progressively lower levels, while expecting the market to eventually revert back to at least average prices. That is a longer discussion, but I recommend doing more research if you are interested in this strategy. Scale trading also requires a trader to have a sizable account with plenty of money in reserve and can still be very risky. Markets that are in solid downtrends can still move much lower than their last 10+ year lows.

 

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Feel free to contact me to see how I would recommend timing trades in natural gas for my clients, as well as profit objectives and risk levels. 

Disclosure: Past performance is not ...

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