How can I invest in oil prices directly?

[UDT89]

Basically as a commodity.

I see it on nymex but i'm confused how it works.

 

[halik]

Look for crude oil ETFs

 

[UDT89]

im looking at the etf for oil but not seeing what i want

 

[nickbits]

Check out this article:
http://www.marketfolly.com/200...rude-oil-etfs-and.html

 

[UDT89]

thanks for the article.

 

[nerp]

Get DXO next time it drops below $2. Sell when it hits the $2.50 to $3 range. Rinse repeat. I've made about $20,000 doing this in the last couple months. 🙂

 

[MotF Bane]

Originally posted by: nerp
Get DXO next time it drops below $2. Sell when it hits the $2.50 to $3 range. Rinse repeat. I've made about $20,000 doing this in the last couple months. 🙂

How much are you investing at a time?

 

[manlymatt83]

UCO/SCO

 

[UDT89]

Originally posted by: nerp
Get DXO next time it drops below $2. Sell when it hits the $2.50 to $3 range. Rinse repeat. I've made about $20,000 doing this in the last couple months. 🙂

i dont mean to be a "dick" but its only dipped below $2 twice in the last 30 days....one of them being $1.99.

and prior to mid-february it hit $1.99 once. Or are you investing $10k and making a 5k profit

 

[nerp]

Well, yeah, $2 is really the range I'm referring to. You'll see that it has dipped to that range and generally tends to trend up. Support is in this range and I've been able to ride it reliably. It won't break $3 anytime soon and with the economy as it is and demand still quite low, it could fall and get stuck there, so I don't know if my experience will be repeatable for much longer.

And yes, I'm playing with $5,000 to $12,000 at a time. That's the only way to make money with cheapo risky stocks like these. You can only turn $300 into $10,000 with the pennies, if you get really lucky, since they're based on pump and dumps. See EESO. I'll throw a few hundred at random pennies that seem to have potential, but this is a losing strategy in the long run.

I have my long term positions, which I buy every month regardless of share price. I expect to build these positions for the next 20-30 years. For the spec plays, I just have $25,000 in zecco and I try to ride reliable cheap trending stocks and occasionally throw a few hundred at a penny that might get pumped, or is being pumped and I try to ride it up and bail before it crashes, or I'll gamble on a small microcap pharma in the hopes of riding pre-FDA announcement news and sell at the height of the rumor. This is too time consuming for me to keep up and I'm about ready to just liquidate zecco completley. I've had a lucky year and I feel like it's time to call it quits.

My strategy is just to play with cash, no options, no shorting and set rigid limits so I never lose more than 1 or 2 percent on a play. I sell when I achieve a reasonable profit, use trailing stop limits whenever I can (damn zecco $5 limit) and take profits without getting too greedy. It's been working so far. But this is just gambling. My real investments are long term, dividend stocks that I don't worry about daily/weekly swings and company 401k and an IRA. I've been funding my IRA with my stock gambling in an effort to offset some of the capital gains hits I'll be facing next spring.

Happy trading to all.

 

[UDT89]

thanks for clearing that up. i appreciate it.

doing my research now. i played LVS for about 6 months. lost a little in the last 15-20 days but nothing to cry over

 

[UDT89]

i like this dxo. im looking for something that mimics the price of crude. i feel that crude its going to the $60's soon maybe $70's and next year back to $100. its going to take a year for the production cuts to catch up

 

[nerp]

Originally posted by: UDT89
i like this dxo. im looking for something that mimics the price of crude. i feel that crude its going to the $60's soon maybe $70's and next year back to $100. its going to take a year for the production cuts to catch up

That's my thinking too, if the suggesting that we'll be climbing out of the recession and heading towards recovery by mid 2010 holds true. Who knows, though. I'm more worried about what the fed isn't telling us right now than the endlessly bleak news we already know and are getting every day.

 

[manlymatt83]

Originally posted by: nerp

Originally posted by: UDT89
i like this dxo. im looking for something that mimics the price of crude. i feel that crude its going to the $60's soon maybe $70's and next year back to $100. its going to take a year for the production cuts to catch up

That's my thinking too, if the suggesting that we'll be climbing out of the recession and heading towards recovery by mid 2010 holds true. Who knows, though. I'm more worried about what the fed isn't telling us right now than the endlessly bleak news we already know and are getting every day.

Ditto

I've had good luck with FAS/FAZ. I'll probably look more into DXO.