oil prices

ron_v12 · Mar 22, 2020

Hey guys i am noob at all the economic stuff so if someone could explain to me why is the oil prices dropping right now, is it because of the corona virus or is it something else that happening.
Thanks guys!

Nobert · Mar 22, 2020

Hey Ron,
i can't answer you question, but, you don't have to be a noob, to loose money with oil :

So if you go with oil, biotechs, cryptos, forex, cfd's, short, naked options, huge leverage - you better be prepared (with information/knowledge and emotional tenacity), because with those products, people get busted - every single day.

I much rather recommend , learning to read balance sheets of equities, and going for low market cap stocks.

In there, ,,Time is your ally, while in options, time is your enemy''.
-Peter Lynch

cdcaveman · Mar 22, 2020

The demand for oil goes down when people aren't planning on using it ..pretty straightforward

ron_v12 · Mar 23, 2020

Nobert said:
Hey Ron,
i can't answer you question, but, you don't have to be a noob, to loose money with oil :

So if you go with oil, biotechs, cryptos, forex, cfd's, short, naked options, huge leverage - you better be prepared (with information/knowledge and emotional tenacity), because with those products, people get busted - every single day.

I much rather recommend , learning to read balance sheets of equities, and going for low market cap stocks.

In there, ,,Time is your ally, while in options, time is your enemy''.
-Peter Lynch

is it correct also on companies that produce oil like exxon mobil?

Nobert · Mar 23, 2020

ron_v12 said:
is it correct also on companies that produce oil like exxon mobil?

I am not sure what is your question, can you expand a little bit ?

ron_v12 · Mar 23, 2020

Nobert said:
I am not sure what is your question, can you expand a little bit ?

you compared oil with crypto and forex but is the company that produce oil is a risk to invest in like to invest in crypto and forex?

Nobert · Mar 24, 2020

ron_v12 said:
you compared oil with crypto and forex but is the company that produce oil is a risk to invest in like to invest in crypto and forex?

Crypto is speculation, has no fundamental value or usage - until it will (if it ever will).
Forex, if for the long term, then you're expecting one country to outperform the another one.

While in general i try to stay out of the energy/chemicals (too cyclical), XOM is decent buy right now, still, i wouldn't dedicate more than 5% of my portfolio to it ;
thus, why to buy it all in the first place, unless one wants to build his own SPY/VOO index.

There's plenty of way better choices for the long term right now, to choose from.

Don't get stuck just with one sector.

ron_v12 · Mar 24, 2020

Nobert said:
Crypto is speculation, has no fundamental value or usage - until it will (if it ever will).
Forex, if for the long term, then you're expecting one country to outperform the another one.

While in general i try to stay out of the energy/chemicals (too cyclical), XOM is decent buy right now, still, i wouldn't dedicate more than 5% of my portfolio to it ;
thus, why to buy it all in the first place, unless one wants to build his own SPY/VOO index.

There's plenty of way better choices for the long term right now, to choose from.

Don't get stuck just with one sector.

thank you very much for clearing me some stuff!
thanks for answer!