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Jump Into Energy Stocks and Oil Companies

Oil stocks trading is now available for the smaller investor. While the large oil companies are integrated fully, and smaller oil companies do exploration for the oil and refine it, the consumer benefits from the end product. And with the technology of today, it is easy to trade the oil stocks.

You should know some facts about crude oil before you begin to invest, such as exactly what it is. It is a sticky, dark liquid, classified as hydrocarbon. That is, it contains carbon and hydrogen. It is highly flammable and is burned to create energy. Derived from this is an excellent source of fuel.

Trading is done in units of 1,000 barrels. The barrel contains forty-two gallons per. When you trade in oil, you are involved in an active trading commodity, the most active in the world.

Among the ten biggest oil producing countries today are: China, the United States, Russia, Mexico, Saudi Arabia, Norway, Iran, Canada, Kuwait, and Venezuela. The United States consumes about one third more than it produces. In contrast, Russia produces 240% more than it consumers. Most oil stocks come from one of these countries.

Once only for the wealthy investor, these days the average and small investor has the chance to trade crude oil, due to new technology. NYMEX requires only a 5% investment or less. This allows for others, less wealthy, to invest in this exciting market.

Now that you know a little bit about crude oil, you need an account with a brokerage firm or on line. Do your research on which companies you have interest in, study their charts and analysis, as well as their annual reports, read the financial newspapers, and make a decision on just how much you intend to invest in this risky trading business. This will help in your decision about how many shares or barrels you intend to invest in. If you are new at this, you may need the assistance of a financial advisor. He or she is trained to know the market and advise you accordingly. And when you are ready, have an exciting time investing in oil stocks.

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Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

After I retired from the hedge fund world I setup this website and blog. If you sign up for my free weekly email list below I’ll send you an update on average about once a week on my views of the current stock market trends and share with you actionable investment ideas.

Now I cannot promise you that every stock I find will go up in value. I can’t promise you endless 100% returns as others claim they do and as all the disclaimers say past performance does not necessarily predict future performance and you can lose all of your money in the stock market.

This is reality.

What I can promise you is my dedication to doing the best I can for you.

You see the key to making money over the long-run in the stock market is to manage your risk. Once you sign up to my newsletter I’ll send you a series of educational videos and writings showing you how I use stop-loss orders to cut any potential losses and how I use my two fold formula system that combines fundamental and technical analysis to pick stocks. My goal is to risk one dollar to try to make at least three dollars in my trades by looking for stocks that are priced cheaply on a valuation basis, have high earnings growth, and have excellent chart patterns.

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