{"id":21834,"date":"2013-08-24T08:00:55","date_gmt":"2013-08-24T12:00:55","guid":{"rendered":"http:\/\/www.ino.com\/blog\/?p=21834"},"modified":"2013-08-23T15:47:06","modified_gmt":"2013-08-23T19:47:06","slug":"got-oil-two-compelling-reasons-to-consider-it","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/","title":{"rendered":"Got Oil? Two Compelling Reasons To Consider It"},"content":{"rendered":"

By: Scott Andrews of Master The Gap<\/a><\/p>\n

Trading is full of counter-intuitive ironies.\u00a0 Some of my favorites include:<\/p>\n

\"the best time to buy is when everyone else is selling\"<\/i><\/p>\n

\u00a0<\/i>\"you can not make money, without risking money\"<\/i><\/p>\n

\u00a0<\/i>\"to make more, you need to trade less\"\u00a0 <\/i><\/p>\n

\u00a0<\/i>\"you CAN go broke taking profits (too early)\"<\/i><\/p>\n

And here's a lesser known one:<\/p>\n

\"It is better to trade two complementary strategies that make less, than one strategy that makes more\"<\/i><\/p>\n

Yes, it is almost always true.\u00a0 Traders can make more profits (over the long term) by trading two conservative, complementary strategies that have lower, combined profit potential than trading one aggressive strategy that has a higher profit potential.<\/p>\n

The reason is not obvious and frequently over-looked until it is too late:\u00a0 The single, higher profit strategy will often endure larger, deeper drawdowns (periods of losing trades and unprofitability in which account equity is reduced) in order to achieve the greater returns. Deep drawdowns are stressful and cause the trader to second-guess his strategy, skip trades, reduce position size, cut winners short and so on - all of which are detrimental to the long term profit potential of the strategy.\u00a0 Dreams of riches often end in a nightmare of losses.<\/p>\n

To minimize these self-destructive behaviors and maximize the odds of long term, consistent profitability, it is better to diversify and trade strategies and \/ or markets that are not related or similar.\u00a0 The goal is to achieve no or low correlation, so that when strategy A is struggling, strategy B is performing and vice versa.<\/p>\n

Here's a brief video that explains the \"in and outs\" of diversifying your trading, including a compelling equity curve example: The Power of Diversification\u00a0<\/strong><\/a><\/p>\n

Applying your favorite strategy to just about any new market will certainly provide many of the benefits of diversification. But to maximize the power of diversifying, it is best to trade a market that \"moves to its own beat.\" Meaning, one that does not move up and down in sync with the equity markets or instrument that you might trade.\u00a0 This is called low correlation.<\/p>\n

One of the most liquid, uncorrelated markets is Crude Oil.\u00a0 It can be traded using stocks, ETF, options or futures.\u00a0 Furthermore, it moves a lot on a daily basis - much more than the major U.S. indices such as the Dow and S&P.<\/p>\n

Want to learn about trading this intriguing market (various instruments, tips for getting started, a simple strategy, etc.)? Check out this short video: Introduction to Trading the Oil Market<\/b> <\/a><\/p>\n

Carpe diem and good trading!
\nScott<\/p>\n

-------------------------------------------------------------------------------------------------------------------------------------------------------------------<\/p>\n

On Wednesday, August 28th, Scott Andrews of Master The Gap will share a comprehensive research study for trading the opening gap in oil.<\/p>\n

During this 1 hour event, a wide range of time-frames and scenarios will be reviewed showing what has worked best over the past 6+ years. Detailed templates will be included that can be used to create your own actionable gap trading blueprints.<\/p>\n

Whether you are already trading oil or interested in starting, this special event and research study can help you create a solid trading plan based on what has worked over the past 1500+ trading days.<\/p>\n

Learn more now<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By: Scott Andrews of Master The Gap Trading is full of counter-intuitive ironies.\u00a0 Some of my favorites include: \"the best time to buy is when everyone else is selling\" \u00a0\"you can not make money, without risking money\" \u00a0\"to make more, you need to trade less\"\u00a0 \u00a0\"you CAN go broke taking profits (too early)\" And here's […]<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[28,5496,7948,2466,5495,4010,5497,2299,2300,5494],"class_list":["post-21834","post","type-post","status-publish","format-standard","hentry","category-general","tag-crude-oil","tag-gap-trading","tag-guest-bloggers","tag-how-to-trade-crude-oil","tag-introduction-to-trading-the-oil-market","tag-master-the-gap","tag-opening-gap","tag-scott-andrews","tag-successful-gap-trading-methods","tag-the-power-of-diversification"],"yoast_head":"\nGot Oil? Two Compelling Reasons To Consider It - INO.com Trader's Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Got Oil? Two Compelling Reasons To Consider It - INO.com Trader's Blog\" \/>\n<meta property=\"og:description\" content=\"By: Scott Andrews of Master The Gap Trading is full of counter-intuitive ironies.\u00a0 Some of my favorites include: "the best time to buy is when everyone else is selling" \u00a0"you can not make money, without risking money" \u00a0"to make more, you need to trade less"\u00a0 \u00a0"you CAN go broke taking profits (too early)" And here's […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/\" \/>\n<meta property=\"og:site_name\" content=\"INO.com Trader's Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/inocom\/\" \/>\n<meta property=\"article:published_time\" content=\"2013-08-24T12:00:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-08-23T19:47:06+00:00\" \/>\n<meta name=\"author\" content=\"The INO.com Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The INO.com Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/\"},\"author\":{\"name\":\"The INO.com Team\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280\"},\"headline\":\"Got Oil? Two Compelling Reasons To Consider It\",\"datePublished\":\"2013-08-24T12:00:55+00:00\",\"dateModified\":\"2013-08-23T19:47:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/\"},\"wordCount\":538,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"keywords\":[\"Crude Oil\",\"gap trading\",\"Guest Bloggers\",\"how to trade crude oil\",\"Introduction to Trading the Oil Market\",\"Master the gap\",\"opening gap\",\"Scott Andrews\",\"successful gap trading methods\",\"The Power of Diversification\"],\"articleSection\":[\"General\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/\",\"url\":\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/\",\"name\":\"Got Oil? Two Compelling Reasons To Consider It - INO.com Trader's Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#website\"},\"datePublished\":\"2013-08-24T12:00:55+00:00\",\"dateModified\":\"2013-08-23T19:47:06+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ino.com\/blog\/#website\",\"url\":\"https:\/\/www.ino.com\/blog\/\",\"name\":\"INO.com Trader's Blog\",\"description\":\"Expert Charts, Trading Tips and Technical Analysis from INO.com\",\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ino.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\",\"name\":\"INO.com Trader's Blog\",\"url\":\"https:\/\/www.ino.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg\",\"contentUrl\":\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg\",\"width\":400,\"height\":472,\"caption\":\"INO.com Trader's Blog\"},\"image\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/inocom\/\",\"https:\/\/www.linkedin.com\/company-beta\/1056449\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280\",\"name\":\"The INO.com Team\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg\",\"caption\":\"The INO.com Team\"},\"url\":\"https:\/\/wwwtest.ino.com\/blog\/author\/the-ino-com-team\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Got Oil? Two Compelling Reasons To Consider It - INO.com Trader's Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/","og_locale":"en_US","og_type":"article","og_title":"Got Oil? Two Compelling Reasons To Consider It - INO.com Trader's Blog","og_description":"By: Scott Andrews of Master The Gap Trading is full of counter-intuitive ironies.\u00a0 Some of my favorites include: \"the best time to buy is when everyone else is selling\" \u00a0\"you can not make money, without risking money\" \u00a0\"to make more, you need to trade less\"\u00a0 \u00a0\"you CAN go broke taking profits (too early)\" And here's […]","og_url":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/","og_site_name":"INO.com Trader's Blog","article_publisher":"https:\/\/www.facebook.com\/inocom\/","article_published_time":"2013-08-24T12:00:55+00:00","article_modified_time":"2013-08-23T19:47:06+00:00","author":"The INO.com Team","twitter_card":"summary_large_image","twitter_misc":{"Written by":"The INO.com Team","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/#article","isPartOf":{"@id":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/"},"author":{"name":"The INO.com Team","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280"},"headline":"Got Oil? Two Compelling Reasons To Consider It","datePublished":"2013-08-24T12:00:55+00:00","dateModified":"2013-08-23T19:47:06+00:00","mainEntityOfPage":{"@id":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/"},"wordCount":538,"commentCount":2,"publisher":{"@id":"https:\/\/www.ino.com\/blog\/#organization"},"keywords":["Crude Oil","gap trading","Guest Bloggers","how to trade crude oil","Introduction to Trading the Oil Market","Master the gap","opening gap","Scott Andrews","successful gap trading methods","The Power of Diversification"],"articleSection":["General"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/","url":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/","name":"Got Oil? Two Compelling Reasons To Consider It - INO.com Trader's Blog","isPartOf":{"@id":"https:\/\/www.ino.com\/blog\/#website"},"datePublished":"2013-08-24T12:00:55+00:00","dateModified":"2013-08-23T19:47:06+00:00","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/wwwtest.ino.com\/blog\/2013\/08\/got-oil-two-compelling-reasons-to-consider-it\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.ino.com\/blog\/#website","url":"https:\/\/www.ino.com\/blog\/","name":"INO.com Trader's Blog","description":"Expert Charts, Trading Tips and Technical Analysis from INO.com","publisher":{"@id":"https:\/\/www.ino.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ino.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.ino.com\/blog\/#organization","name":"INO.com Trader's Blog","url":"https:\/\/www.ino.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg","contentUrl":"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg","width":400,"height":472,"caption":"INO.com Trader's Blog"},"image":{"@id":"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/inocom\/","https:\/\/www.linkedin.com\/company-beta\/1056449\/"]},{"@type":"Person","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280","name":"The INO.com Team","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg","caption":"The INO.com Team"},"url":"https:\/\/wwwtest.ino.com\/blog\/author\/the-ino-com-team\/"}]}},"_links":{"self":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts\/21834"}],"collection":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/comments?post=21834"}],"version-history":[{"count":0,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts\/21834\/revisions"}],"wp:attachment":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/media?parent=21834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/categories?post=21834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/tags?post=21834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}