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So my aunt came to me and want me to use...
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Thread replies: 49
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So my aunt came to me and want me to use her money to invest in crude oil. I'm not asking you if I should or not. I'm asking how to invest in it.

What website, account I need make?
Can I invest in crude oil directly? or is it a company I'm suppose to invest in?

My thought process. Create account on the website that let me buy the crude oil>link bank account>buy shares of crude oil.
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Ahahahahahahahhahhahahahahahahaaaaa
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>>1047209
Yeah doing that kind of research is too much of a hassle. Why don't you just fill up some gallons at the gas station and store them in your garage?
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>>1047215
>Yeah doing that kind of research is too much of a hassle
Do you type that to every thread?

I did do some research and it lead me to ETF so do I use scottrade and buy those popular ETF? The ETFs prices are way less than the price of crude oil so if the price of crude oil were to go up $10, for the equivalent ETF, how much does it increase? Honestly it's a lot to research on. And I just want to buy it, get it done and do my other stuff.

There's idiotic questions all across this board. She wants to buy it as soon as possible so figure a kind anon would point me to the fastest way possible for me to buy it.
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>>1047240

jesus christ you have much to read
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>>1047240
>There's idiotic questions all across this board
Idiotic answers all across it too.
If you don't give two fucks about it, what makes you'll get anything but?
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>>1047252
Because I can probably figure out if the answer is bullshit or not? I might or might not get anything but from other boards, there's tend to be that one anon who decide to give a non bullshit close enough answer.

I don't think the question "How" is hard to answer. I can put all her money in the oil company through Scottrade but I figure someone here can have a better insight.
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>>1047209
all good questions anon. fortunately you don't have to buy stock-- you can invest in oil directly, through futures. The symbol is CL. One contract costs about $5k, so if you are looking to invest 50k, you can buy and hold 10 contracts. Just set it and forget it, the price will eventually go up.
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>>1047257
>Because I can probably figure out if the answer is bullshit

Time to shine, anon >>1047263
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>>1047266
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>>1047209
Hey anon. You could look at one of the ETFs that track the price of oil, since they work similar to shares. You should be able to trade these with most brokerage accounts.
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>>1047263
Could you please help this guy buy 10 contracts of Colgate-Palmolive?
I believe that's 1,000 barrels of Palmolive per contract.
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>>1047272
Does it matter which ETF? if price of crude oil increase, does all oil ETF increase? I plan on getting the ETF USO or just put it in the company like BP.
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>>1047279
Google oil ETFs

Basically an unleveraged oil ETF is meant to track the % change in oil prices, so if oil goes up 5% it will go up 5%.
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>>1047269
What you want is this:
http://quotes.ino.com/charting/?s=NYMEX_CL.H16.E

WTI Crude Oil. Huh it's @CL. If I recall correctly they were changing the symbol because it's a new year.
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>>1047263
A single futures contract is 1000 barrels, and thus roughly 45k, not 5k.
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>>1047295
Leverage, bud.
he's correct that it's around $5K.
$4300 in my case.
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>>1047304
sure, but I can go to pepperstone and get 500:1 leverage on oil futures but that doesn't mean the price of the future is only $88.
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>>1047310
Well, there's "what it costs", and "what it costs you". I'd guess most people probably want to know the latter.
It's not like most here understand how maintenance requirements work.
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>>1047209
You a member of the Saudi royal family?

No?

Then stay away from oil. The market is fixed.
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>>1047279

Do not buy USO or any other ETF without thoroughly researching how those instruments work, and specifically what effect contango has on rolling near term futures contracts.

USO invests only in the nearest term futures contract. The only way to make money in USO is when there is a violent move in oil prices in a very short time.

USL is a better bet over a longer time span than one month, but I still wouldn't recommend it. You're still subject to decay due to contango. It's just less than USO.
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>>1047935


saudi did this same shit back in the 80's

they don't have an infinite supply of oil it will run low soon or later its a waiting game
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>>1047215
This OP

My whole garage is full of gasoline barrels

I'm gonna make a killing in a few months

Don't let the plebs know
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I hate when people won't answer a simple fucking question.
OP I suggest opening an account, Scottrade is fine, there are many to choose from though.
Then, and since you don't know a whole lot about this stuff I would avoid futures and even ETFs, I would suggest putting the money into a few different oil company stocks. If you're working with more than a few thousand dollars, I would do at least three. There's the big players, and I'd maybe look at some of the South American companies.

>>1047973
Good advice. These are not set it and forget it investments.
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>>1048431

Honestly I am betting they have less oil than anyone thinks. The gwahar field has produced over 65 billion fucking barrels. They keep pumping more and more sea water into it to maintain production. They dont let any information about it out to the public. I think it could hit whats called "breakthrough" pretty soon and go into a pretty fast decline. Basically all they water they have used to displace oil will start to reach the producing wells and youl see the water production skyrocket and oil production decline quickly. I think over the next 10 years youre going to see saudi decline and youre going to see China and India demanding a whole shitload of oil. This could be the buying opportunity of a lifetime boys.
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I'm using etrade and buying. They are etfs I think
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>>1049617
Gasoline goes off, cunt
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>>1050077
Why not just go for an index, then s/he can set and forget?

Surely stocks are Hugh risk at the moment with the inevitable M&A slaughterhouse
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>>1049617
Top quality shitposting
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>>1050077
She wants me to put 10k in it. Whether it be oil company or the ETF, it doesn't matter. She doesn't look at stocks at all. She just wants to buy it(whatever it is) now and hold it and hope it goes up in 10, 20 years.

I already created an account with scottrade in her name and put 10k in it. I could just put it all in USL as he >>1047973 suggsted and move on since it is her money. So oil company is better bet than USL?
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>>1047263
anon. have you never heard of delivery dates? with commodities like oil you have to deal with these monthly or every other month. great idea, have him go long a contract of CL, then next thing you know he has his broker calling him on the expiry date asking where he wants the 1000 barrels delivered.
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>>1047263
not even to mention the maintenance margin. price drops 40 cents, CME calls to tell your ass to deposit more cash.
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>>1050286
>>1050288

rly?
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>>1047209
Why the hell is she giving her money to you when you clearly have no idea what you are doing? Give her money back before you loose it you retard.
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>>1050863
Yeah.
Futures don't operate like stock. All losses and gains are immediately realized, so they don't screw around when you start losing money.
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anyone using etrade?
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>>1050206

USL is better than USO, but still has risk of time decay due to rolling futures contracts.

Best approach is probably to split the amount equally (in dollars not number of shares) between the 2 or 3 largest oil companies. Exxon-Mobil (XOM), Royal Duth Shell (RDS-A), and Chevron (CVX) are the three largest U.S. Traded companies by revenue. Any more than three and fees will eat into your trades, plus it's more to keep track of.

You could buy an ETF, but they have more exposure to smaller players that are likely to have cash flow issues and debt defaults. Stick with large companies with lots of cash in the bank.
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>>1050920

Sorry, I missed BP (BP). Those four are the largest U.S. traded companies
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>>1049617
>>1047215
Yeah, I saw that episode of Always Sunny too.
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aunts telling financial advice is a strong sign for leaving the arena desu for a while at least

oil will go all the way to 0.50$ then there will be a happening against saudi royal family that wont really overthrow them but oil price will go to 100ish because of the panic. a few weeks before this, jews will start doing buys through the price falling 10$-->2$ then sell half of it to fool goyim. screencap this post
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>>1050095

I'm buying into oil too.
People tend to forget that the whole ME is a huge powder keg, and the saudis are running a huge deficit.
The low prices of oil are not sustainable.
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>>1051845

What an amazing investment strategy, hoping something happens in the middle east
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>>1050863
yeah plus with crude you can't really do a efficient rollover like with /ES or /ZB and /ZN, so even if he did go long and just keep rolling over, the spread will eat his ass for lunch
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>>1052102
its a known fact that middle-east is full of crazy sand people who kill people over disagreements related to imaginary characters

still better strategy than bitcoin
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first buy signal still 24, wont go short or long before dat. might never happen who knows
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>>1047209
>buy the crude oil>link bank account>buy shares of crude oil
being this dumb.

Honestly over 50% of the posts on /biz/ are questions from idiots that won't take the time to read about economics/finance/markets

There's ETFs for that
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>>1047240
Honestly mate why do you expect /biz/ to do the research for you.

>There's idiotic questions all across this board. She wants to buy it as soon as possible so figure a kind anon would point me to the fastest way possible for me to buy it.

A brokerage firm... duh.
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>>1047279
>I plan on getting the ETF USO or just put it in the company like BP.

You want an ETF that is pegged to the price of crude oil. Magicians at brokerage firms create these financial instruments from a variety of equity, such as futures, stocks, bonds, cash, metals etc.

Buying shares in a vertically integrated petroleum company is not the same as purchasing shares of an ETF which is pegged to WTI. Companies have disasters, earnings, and are generally thought to carry more risk.

I'm a STEM grad student and did reading on my own. It would be prudent if you did the same.
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>>1047215
This
Thread replies: 49
Thread images: 4
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