Oil Stocks
When we talk of oil stocks, we mean stocks of oil companies like EXXON MOBIL. The world’s famous oil companies are known as Seven Sisters. Seven Sisters were Shell, Gulf, Exxon. Chevron, Texaco, BP and Mobil. After the merger of Exxon with Mobil, these should be known as Six Sisters but the name still lingers on. Now investing in oil stocks is a good way to profit from the rise in oil prices.Learn Fibonacci Retracement. Meet High Velocity Market Master.Try this cash printing Forex Signal Service from heaven!
Now these are not the only oil companies whose stocks are worth investing there are many many oil companies stocks that you can invest in. The above names are only the biggest oil companies in the world. As always your investment strategy should be tailored to your trading style. Are you a buy and hold type of investor? In that case, you should select an oil company that has a very good management and reputation and is poised for doing business on a long term. Now many companies in the oil sector have also started invested in alternative energy sector as well. So your investment in the right company can give you solid returns.
And in case you are a short term day trader or a swing trader than you should look for an oil sector ETF that mimics some oil index. This way you will be hedging your risk by investing in a basket of oil sector stocks that mimics an oil sector index instead of only one oil stock that may do the exact opposite of what the oil price is doing.
Oil stocks can be a good investment keeping in view the fact that oil prices are again poised to rise as the global economy starts to come out of the recession. In 2008, oil prices skyrocketed from $60-70 to almost $150 in a few months before the bubble burst. This time, analysts are sure that oil prices will easily touch $200 per barrel. This makes alternative energy stocks a very good investment too as in the coming decades the world will need to find a good alternative to oil! Now many of these oil companies are already trying to expand into the alternative energy sector as well so your investment can give you a solid return in the long term.
When we talk of oil we are in fact talking about commodities. Oil is the highest traded commodity in the world. Another good method of investing in commodities is through ETFs. ETFs (Exchange Traded Funds) have become highly popular in the last decade. The give you the benefits of a mutual fund as well as a stock. So an ETF provides both diversification as well as liquidity. There are a number of commodity ETFs based on oil.
Tags: energy stocks, oil stock, oil stock investing, oil stocks, stock investing