Understanding NATGAS MarketsHey Traders,
Loads of traders keep asking me privately and on my streams about this asset.
The reason why people are interested in it is purely because they want the thrill and the chase. You can see the start of the enormous explosion came because of news sentiment and shortages of gas due to the ongoing war. That means the price goes up due to demand and diminished supply. However, naturally, with any market that ends and you get an enormous fall much like you saw with the USDJPY and other assets like gold.
After large moves up comes large moves down. And in future, again, large moves up. But the question of 'When' is what makes people excited. If you are Trading due to excitement, stop. It will crush you.
You need to take logical decision based on the value of the asset and continuous gains. If you are trying to buy so you can catch an ultimate rise despite market sentiment you are trading for excitement, because you don't know when sentiment will be extreme enough to get sufficient gains on a move up. The price, technically, is low like it was before and somewhat constitutes only light entries to the long side with early exits based on previous minor PA.
But do not trade this for a 'big win'. Trade assets with tonnes of price data that is concrete. Mostly NATGAS flies when there is some sort of crisis which are not all too frequent (see 2000, 2008).
Trade safe and Trade small. Do not load in there is STILL a chance you can go further.
