How To Trade Oil And Gas

Oil, gas, and other energy news is everywhere, but “how do I get in on the action? What type of trading instruments do I use?” Read on and find out.

You might be thinking “should I use stocks, ETFs, CFDs, or futures to trade oil and gas? What about solar energy?” Picking the right instrument depends on many factors such as types of businesses, regions, risk profiles, and psychology.

In today’s article, I’ll provide you with some ideas about the various products that you can use to trade oil and gas, but also more generally the energy markets. A thank you goes out to Mark, one of our readers, who asked this question – one that some of you may be wondering about. By the way, please feel free to send me questions. That’s what you come here for – the extra context.

First, let’s focus mainly on non-leveraged securities (stocks and ETFs), while showing some stable and/or fast-growing stocks and indexes. Major leveraged products, such as futures contracts, will be emphasised in a second part this week, so bear with me, as I provide you with some ideas as to their usefulness.

Stocks

Common shares in stocks is one of the most popular types of security and widely used by portfolio managers, whether they are hedge funds, investment funds, pension funds or retail investors.

Shares in stocks are easy to trade. Since they are non-leveraged instruments, they present some attractive characteristics to get one foot into investing such as the fact that they do not necessarily require a large amount of capital to get started. Furthermore, these days there is a growing number of brokers offering to invest into a fraction of shares, so it helps mitigate the risk and optimise a portfolio return with better diversification and more accuracy in exposure.

Here are some interesting companies that you can use to diversify your portfolio (click on link below each chart to see more information, data, holdings, etc.)::

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Disclaimer: All essays, research and information found in this article represent the analyses and opinions of Sunshine Profits' associates only. As such, it may prove wrong and be ...

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