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TME 016: Oil Prices

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OIL Prices

So the question on many peoples mind today is how much lower will gas prices go. Personally I never thought gas would get below $3.00 a gallon again. Just the other day I saw gas for $1.88 per gallon. It is crazy. So the question was posed to me the other day “is it time to buy oil?” The answer is no. Since I was asked that question oil prices have fallen another 10% or more.

-When will the fall end?

-When should I buy?

-Will Oil ever get back above $100 per barrel?

The answer to these questions no one knows. What we do know is that oil prices are in a downtrend and getting long now is to early.

When a market goes crazy it tends to make the people interested in those markets go crazy.

It was just a little while ago that oil was above $100 a barrel. Everyone remembers that. It’s easy to think that by summer we could be at $100 a barrel again. So you could put your money in oil today and double your money.

What an easy trade. It’s s no brainer right? Wrong! Oil could just as easily go below $25 a barrel. You could lose half your money.

So some say it’s going up and some say it’s going down. Truth is no one knows.

 

How to Buy Oil

There are many ways to buy oil. I read a story the other day about some really wealthy people buying tankers and storing the oil on tankers off shore. Just the storage cost was over 1 million dollars. That’s one way to do it if you have a lot of money. We need to be real most people can not do that so what are some ways that normal people can buy or trade oil?

1) Buy Oil Futures– A futures contract is a contract for a specified amount of oil with a delivery date some time in the future.  Oil futures contracts are easily traded with brokers that allow futures trading.

2) Buy an Oil Etf – Another way to buy oil is with oil etfs like USO.  This etf buys futures contracts. So it tracks the price of the actual commodity

3 Buy Oil Company stocks – This is one way to invest in oil by investing in the oil company. Company stocks are not always going to follow the price of oil.

 

When to Buy Oil

When should a trader start thinking about buying oil? Whenever you system tells you to and not one day before. It’s easy to think and dream about what oil will do. It’s easy to speculate and say that oil will be at $100 a barrel by May. It’s easy to calculate the numbers and see that if the price of oil gets to $100 then you will double your money. It’s easy to say that summer is coming demand will be up $100 a barrel is a no brainer. The problem is none of that is reality. It could happen or it could not.

No one knows when to buy oil but your system will give you the best opportunity when you do buy.

 

Free Oil Trading System

This week we are adding a page for someone interested in oil trading. It’s what we call the free oil trading system. You don’t have to sign up. You don’t have to give us your email. Just click on the page and follow the links to the daily signals.

 

The system will use the symbol uso. It will be updated daily.

 

The fact is oil is going crazy and when markets go crazy people get crazy. Don’t be one of the crazies that loses money from emotional trading.

 

 

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