Energies Seasonal Trends – How To Trade Them For Huge Profits!

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:22.

Natural Gas

In the United States, natural gas is used primarily as a heating fuel in the Northern states during the winter months and is used as a fuel to produce electricity to power air conditioners during the summer in the Southern states.

Therefore, demand on a retail level will be highest during these periods and traders need to look at storage coming into these periods of peak demand to anticipate where prices will go. Trading Seasonal trends

Now we know the seasonal trends we need to look at the way to trade them the golden rule for trading seasonal trends is: Price precedes consumption

This is because in energy markets supply must be stockpiled to meet seasonal demand. This means:

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