Make sure to give the CL (Crude Oil) Contract Consideration!

[The Bear]

	Quote:	BlowFish
	Is it quite 'technical'? (Hows that for a vague term). Is it 'trendy' on intraday time frames ? I'll try and think of some more vague generic questions Cheers.

From my experience, CL is most of the time not trendy on intra-day time frames. There are some days where you get really nice trends, good quality, and on these days gains come quick and fast, but most of the time it's pretty choppy and erratic. It's like any market, you get good days then ugly days....

[The Bear]

	Quote:	Marsupilami
	Hello brownsfan, However, regarding the risk/reward ratio, I'm not so sure whether oil is better than e.g. the ES. Moves in both oil and natural gas can be so sharp and drastic that, I'm afraid, no stop loss will help if the market goes the wrong way. Good trading

In my opinion, no market is better than any other. We trade what we trade, and if we feel more comfortable in one than another - then stick with it. What you are witnessing with CL is a difference in leverage than the ES. Changes in gearing change the feel. For example if you want fast moves, then Henry Hub NG is the market for you. The leverage is high and the moves are fast even for 1 contract it carries good leverage.

As far as getting fleeced in the energy markets, yes, with even a single contact like NG, if something goes wrong like a technical problem, you could potentially get hurt much quicker than 1 CL contract or 1 ES contract, simply due to the gearing. The gearing is higher, so if you get a runnaway market (and it happened to me once but I minimized the pain) and your stop doesn't execute, it can get a little hairy. But nobody should even enter these commodity markets unless they are aware of these risks, and are willing to lose that kind of money.