Trading Pro Q&A: What is the most common mistake when trading oil and gas?

Curious about what could go wrong when trading oil and gas? Three trading specialists reveal the most common mistakes traders make and how to avoid them.

Energy markets can be some of the most exciting—and unforgiving—arenas for traders. Oil and gas prices often react sharply to geopolitical developments, inventory reports, and unexpected supply disruptions.

While the potential for opportunity is significant, the volatility of these commodities can quickly expose weaknesses in a trading strategy. From ignoring fundamental drivers to holding positions through unpredictable news events, traders frequently fall into avoidable traps when trading energy markets.

To shed light on the most common pitfalls, we asked three market professionals to share the mistakes they see traders make most often in oil and gas—along with practical insights to help traders navigate these highly reactive markets.

What is the most common mistake traders make when trading oil and gas?

Inki Cho

Senior financial markets strategist

”Unlike traditional instruments, commodities, including USOIL, tend to exhibit significant volatility due to shifts in sentiment driven by geopolitical issues. Therefore, traders must pay close attention to factors beyond simple price action, such as changes in supply and demand, and inventory levels.”

Insight for traders: ​​ Most traders would avoid increasing their position when major issues affecting supply and demand are announced. The first key to risk management is to minimize losses rather than maximize gains.

Michael Stark

Financial content lead

”For me, and many traders I've spoken to, the most common mistake in oil and gas trading is leaving positions open over weekends or holidays. It can occasionally lead to big profits, but more often it ends with a stop out or worse on Sunday night, leaving me scratching my head.”

Insight for traders: Major energy news often comes out during the weekends. I never leave any oil or gas trade open over the weekend and almost never overnight.

Wael Makarem

Financial market strategist lead

”Traders often treat oil like a regular market, forgetting that it’s heavily driven by geopolitics, supply headlines, and sudden sentiment shifts. The biggest mistake is overleveraging during news-sensitive periods. A setup may look perfect on the chart, but one unexpected OPEC comment or inventory surprise can reverse the move instantly. ”

Insight for traders: ​​ Many traders consider smaller position sizes around events such as inventory releases or OPEC meetings and remain cautious after extended price moves.