Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

The oil & gas industry is a cornerstone of the global economy, with its health directly impacting currency markets. As a forex trader, understanding the trends within this industry can be crucial for making informed trading decisions. This article explores the key factors shaping the oil and gas landscape in 2024, providing valuable insights for traders.

Demand and supply dynamics

The global oil market is currently experiencing a tug-of-war between rising demand and restricted supply.

On the demand side, a post-pandemic economic rebound is expected to drive a modest increase of 1.1 million barrels per day (mb/d) in oil consumption in 2024. This growth is particularly fuelled by developing economies like China and India, where rising industrial activity is expected to lead to increased reliance on oil.

However, this positive demand outlook is countered by significant production cuts from the Organisation of the Petroleum Exporting Countries and allies (OPEC+). These cuts, amounting to around 1.5 million barrels per day, have been a major reason behind the 2023 surge in oil prices.

While US shale oil production is estimated to climb by 0.8 million barrels per day in 2024, it’s unlikely to fully offset the cuts from OPEC+, keeping a floor under prices in the near term. It’s important to note that a potential increase in supply from OPEC+ exceeding pre-pandemic levels in 2025 could significantly impact the price equation.

Real oil and gas demand and supply in 2024

Let’s take a look at the latest data from the International Energy Agency’s (IEA) March 2024 Oil Market Report.

In a positive surprise, global oil demand is forecast to rise by a higher-than-expected 1.7 million barrels per day (mb/d) in the first quarter of 2024 (1Q24). This upward revision is attributed to an improved economic outlook for the United States and increased bunkering activity (fuelling ships).

However, the IEA still expects overall demand growth to slow throughout the year, from 2.3 mb/d in 2023 to a revised estimate of 1.3 mb/d in 2024.

World oil production is projected to fall by 870 kb/d in 1Q24 compared to 4Q23. This decline is due to heavy weather-related shutdowns and new production curbs implemented by the OPEC+ alliance. Despite the initial drop, OPEC+ production is still expected to increase in 2024, albeit at a downwardly revised rate of 400 kb/d.

With the revised forecasts, global oil stocks are now expected to increase by 800 kb/d to 102.9 mb/d in 2024. This indicates a potential rise in global oil inventories throughout the year.

Price outlook & market volatility

Oil prices have experienced a significant climb in recent times, hovering around $90 per barrel compared to the lows of $60 per barrel seen in 2020. Due to the current supply-demand imbalance, analysts initially expected prices to remain elevated throughout 2024, with a potential reach of $100 per barrel.

However, a more nuanced picture is emerging. As of May 22nd, 2024, the price of West Texas Intermediate (WTI) crude oil sits at $77.91 per barrel according to Macrotrends. This suggests a price increase of around 9% for 2024 so far, with significant volatility throughout the year. The highs have reached $87.01 per barrel, but prices have also dipped as low as $70.38 per barrel.

Unforeseen circumstances can significantly impact prices. A global economic downturn could decrease demand and lead to a price correction. Conversely, major oil discoveries or disruptions in supply due to geopolitical events could cause prices to surge. Closely monitoring these developments remains crucial for traders navigating the oil market.

While the initial forecasts anticipated prices reaching $100 per barrel, current market conditions suggest a more moderate price range with ongoing volatility.

Industry trends & long-term outlook

Beyond the immediate price dynamics, several key trends are shaping the long-term outlook of the oil & gas industry.

Firstly, there’s a rising tide of mergers and acquisitions (M&A) activity. Strong cash flows, buoyed by high oil prices, and renewed investor confidence are driving this trend. Industry experts predict a 20% increase in M&A deals in 2024 compared to 2023, as companies consolidate to gain market share and improve operational efficiencies.

This consolidation could also lead to increased bargaining power with service providers, potentially impacting the overall cost structure of the industry.

Secondly, decarbonisation efforts are gaining significant traction. Oil and gas companies are increasingly investing in carbon capture technologies, with a projected global market size of $8.6 billion by 2025. These technologies aim to capture carbon emissions from power plants and industrial facilities, preventing them from entering the atmosphere.

Additionally, hydrogen production, a clean-burning alternative fuel, is attracting significant investments, with a projected market value of $18 billion by 2024. This focus on sustainability could influence long-term demand for traditional oil and gas.

While the transition to a low-carbon economy may take time, it’s a trend that traders should be aware of, as it could have a significant impact on the industry’s future.

Finally, advancements in technologies like generative AI are playing a role in optimising exploration, production, and logistics. These advancements are estimated to unlock an additional 5% of global oil reserves and could potentially lead to increased efficiency and cost reductions within the industry.

AI can be used for tasks like analysing seismic data to identify potential drilling sites, optimising well placement, and even predicting equipment maintenance needs. By leveraging these technologies, oil and gas companies can potentially operate with greater efficiency and profitability, even in a lower-carbon future.

In conclusion, the oil and gas industry in 2024 presents a complex landscape for forex CFD traders. Understanding the interplay between demand, supply, industry trends, and potential geopolitical disruptions is crucial for making informed trading decisions. By staying updated on market developments, employing technical analysis effectively, and maintaining a disciplined risk management approach, traders can navigate the oil market with greater confidence.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Affected by international holidays, the trading hours of some VT Markets products will be adjusted. Please check the following link for the affected products:

Notification of Trading Adjustment in Holiday (Updated)

Note: The dash sign (-) indicates normal trading hours.

Friendly Reminder:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Flip, eat, sleep, repeat – such is the degen lifestyle of a forex trader. While majority of people are still debating about on-site jobs, hybrid work or full remote opportunities, degens traders are thriving on market volatility in attempt to tenfold or even hundredfold their small capital, living the dream lifestyle of many. 

Or at least that is how social media portray them to be living. 

Half the time, these market enthusiasts are glued to their computer screens and following the latest market movements for the next big opportunity.  

Opportunity and risks

Even the S&P500 companies would be out of manpower if and only if everyone could easily be a successful forex trader. No one would be interested in a “job” if it is straightforward to achieve such a degen lifestyle.

While social media seems to display that life is great as a trader, the truth is that such lifestyle that demands one to possess dedication in learning and a high-risk tolerance to market fluctuation. 

Without any consistent or stable income stream at the onstart, a degen forex trader typically has a super small capital and often has the wildest dream of flipping $100 to his first million. While this is not impossible given that there are endless opportunities in the financial market, traders are often subject to certain challenges that would make or break them. 

If a market always stays quiet and flat, there would be no opportunities to for profits to be made. On another end, extreme volatility or swings would either result in a huge fat profit or wipe a trader’s account out.

It can be tricky for a newbie to figure out on the right balance to strike, and in this case may benefit from following a signal provider using the copytrading feature.  

News and information overload: To follow or not to follow?  

Staying up to date in the financial markets is a constant battle. On top of economy calendars, fundamental data, technical analysis and news articles, degen forex traders also tend to receive tips from social media channels such as Twitter.

Not only it is easy to drown in a sea of information, but traders may also struggle to filter or verify the validity of the same. It is no surprise to see some traders would rather just purely rely on technical analysis as their trading strategy instead of trading on news. 

Failure of risk management is the highway to hell 

Many degen traders are prone to take on excessive risk as they all hope to make money quickly. As such, they often trade in a speculative manner, and further amplify the risk using high leverage.  

Let’s use a trade in gold (XAUUSD) as example. 

If a trader with a balance of $4,120 decided to short one (1) standard lot of XAUUSD at $2,060 with target price of $2,000, he is using a leverage of 1:50. If things moved according to his plan, he would make a profit of $6,000 on this trade alone. That is a whooping 145.63% on his capital of $4,120 – which is impressive! 

However, XAUUSD eventually rallied in the opposite direction, past the $2,100 price level. If the same trader set a stop-loss at $2,080, his position would have been closed with a loss of $2,000, which is quite a painful loss of 48.54%. 

Now imagine how can he recover such a sum back? Only if he doubles the trades that he subsequently makes with his new balance of $2,080. Ouch. 

Pictured: Financial hell

Worse, if no stop-loss was set at all, his entire account would have been wiped out once XAUUSD moves past $2,101.20. This is exactly how over-leveraging kills a forex trading account. 

P/S: You can also check out how to trade gold (XAUUSD) if this is your choice of asset to trade. 

The moral of the story 

By setting a stop-loss too far away, not adhering to a stop-loss or not using a stop-loss at all, a forex trader is throwing risk management out of the window. However, managing risk is crucial for survival as a degen trader, as one will need to survive through series of trades before striking a big successful transaction.

In the meantime, one single mismanaged trade can wipe out an entire portfolio, sending all previously made profits back into the market. This is why it is essential to strike a balance between risk and rewards. 

Is this degen lifestyle as a forex trader really sustainable? 

No doubt the market is a place full of high risks and speculation. Although a retail forex trader cannot control the market, what he can control is his own risk management and mental state in avoiding impulsive or reckless decisions.  

With strong commitment in learning the markets and good discipline in managing risks, a forex trader will be able to achieve consistency in his trades. From there, the profits piled over time will generate a significant sum, leading to financial freedom envisioned by most. 

Trade 1,000+ assets with VT Markets 

Embark on your journey as a forex trader with VT Markets now. With 1000+ assets being offered, ECN and STP accounts, forex economy calendar, academy and analysis being made avail to you, there is nothing to stop you from living the lifestyle you desire. As a new client of VT Market, you can also claim welcome bonus on your deposits. So, hesitate no more, start today! 

Open a live account 

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

The allure of forex trading – the potential for quick riches and the thrill of the fast-paced market – is undeniable. But unlike stock investments, forex success hinges on mastering the mental game. Fear, greed, and overconfidence can quickly turn winning trades into losses.

This comprehensive guide equips you with practical strategies to conquer the emotional challenges of trading, paving the way for informed decisions and consistent profits.

Step 1. Tame the emotional beasts

The first step is understanding your emotional triggers.

• _{How do you react to wins and losses?}
• _{Do you get overly excited, leading you to take on more risk than usual with your next trade (overtrading)?}
• _{Does frustration tempt you to overtrade in a bid to recoup losses (revenge trading)?}

These emotional responses can cloud your judgment and lead to costly mistakes.

Actionable tip: Start a trading journal – your emotional fingerprint

Develop a comprehensive trading journal that goes beyond simply recording trade details. After each trade, jot down the emotions you felt (fear, excitement, etc.), the specific trade details (currency pair, entry/exit price, trade size), and the outcome (win/loss).

Over time, patterns will emerge, revealing your emotional triggers. For instance, you might notice a tendency to overtrade after a string of winning trades, fuelled by excitement and a desire to capitalise on the perceived “hot hand.”

Alternatively, you might see a pattern of revenge trading after experiencing a significant loss, driven by frustration and a need to “get even” with the market.

Recognising these patterns is the first step towards managing your emotions and making sound trading decisions.

Step 2. Develop a trading plan

A well-defined trading plan minimises emotions’ influence. It acts as a roadmap, guiding your entry and exit strategies based on technical indicators or fundamental factors. This plan should be tailored to your individual risk tolerance and trading style.

Actionable tip: Craft your personalised trading plan

Here are some key elements to consider when building your trading plan:

• _{Identify your trading style: Determine if you’re a day, swing, or position trader to align your plan with your goals and risk tolerance.}
• _{Develop entry and exit strategies: Use technical indicators (e.g., RSI, moving averages) and fundamental factors (e.g., economic data) to outline criteria for trades.}
• _{Define risk management parameters: Set stop-loss and take-profit orders to manage risk, limiting losses and locking in gains.}
• _{Review and refine your plan: Regularly assess and adjust your plan based on market dynamics and personal experience.}

Step 3. Build a winning mindset

Successful traders cultivate a positive, realistic mindset that prioritises long-term success over short-term gains. Here are some key aspects to develop:

• _{Set realistic expectations: Aim for small, consistent profits and focus on improving your skills. Understand that losses are part of the process, even for professionals.}
• _{Embrace the journey: View trading as a continuous learning experience. Analyse each trade to identify areas for improvement and experiment with different strategies.}
• _{Learn from losses: Use losses as learning opportunities. Examine the reasons behind losing trades, whether due to emotional decisions or analytical errors, and adjust your strategy accordingly.}

Actionable tip:  Expand your trading journal for continuous improvement

Integrate a “Lessons learned” section into your trading journal.

After analysing losing trades, identify the contributing factors (emotional trading, flawed strategy) and outline corrective actions. This will help you learn from your mistakes and avoid repeating them.

Additionally, analyse winning trades to understand what worked well and potentially incorporate those elements into your future strategies.

Step 4. Combat confirmation bias

Confirmation bias is a cognitive trap that can distort your judgment and lead to poor trading decisions. It’s the tendency to seek out information that confirms your existing beliefs and ignore contradictory evidence. This can be particularly dangerous in forex trading, where market sentiment can shift quickly.

Scenario: The echo chamber effect

Imagine you’re heavily invested in the euro (EUR/USD) and are convinced it will appreciate against the US dollar. You’ve been following a popular forex analyst who consistently predicts a strong Eurozone.  Here’s how confirmation bias can play out:

• _{You actively seek out news articles and social media posts that reinforce your bullish view on the euro.}
• _{You discount or dismiss any information suggesting potential weakness in the Eurozone economy.}
• _{You ignore technical indicators that might be signalling a potential reversal in the EUR/USD trend.}

This “echo chamber” effect prevents you from seeing the bigger picture and making informed trading decisions.

Actionable tip: Diversify your information sources

Here’s how to combat confirmation bias and develop a more objective perspective:

• _{Seek out divergent viewpoints: Follow balanced financial news presenting both bullish and bearish arguments to avoid confirmation bias.}
• _{Challenge your assumptions: Question your trading ideas and discuss them with experienced traders who offer different perspectives.}
• _{Focus on facts, not opinions: Base trading decisions on technical indicators, fundamental analysis, and your trading plan, ignoring unsubstantiated opinions and online hype.}

Step 5. Build a support system

Surrounding yourself with positive and successful traders fosters a positive and motivating environment. Here are some ways to connect with a supportive community:

• _{Online forums: Join reputable forex forums with active, moderated discussions to ask questions, share experiences, and learn from others.}
• _{Educational webinars: Attend sessions by professional traders focusing on specific trading strategies, risk management, and balanced market data analysis.}
• _{Local meetups: Network with local traders to share experiences, discuss strategies, and build a support system that keeps you accountable and motivated.}

By connecting with a supportive community, you’ll gain exposure to diverse viewpoints, fostering a more balanced and objective approach to trading.

In conclusion, mastering the mental aspects of trading is crucial alongside understanding market fundamentals and technical analysis. By using self-awareness, a solid trading plan, risk management, a winning mindset, and a supportive community, you can handle the emotional challenges and become a more confident and successful trader. Remember, trading is a marathon, not a sprint. Be patient, disciplined, and continually strive to learn and improve. By conquering the mental game, you’ll achieve your trading goals.