Monday, August 01, 2005

Black Gold

i'm getting tired of rollercoaster biotech stocks, so lately i've been trying to learn about oil. oil is still trading near $60, and i'm going to try to see if theres anyway i can make some money in this sector.

in the long run, what it comes down to is whether oil prices in the coming years will make $60/barrel look expensive or cheap. i have no idea on how to trade futures, so i'll be doing some indepth fundamental research on smallcap oil stocks in the next couple weeks.

in fact, i've spent the last hour checking out a company which specializes in oil exploration. i'm not going to post up the chart until monday's open, however, because i have to see how the stock opens tomorrow to get a better idea of the risk/benefit assessment before i establish a position. in the meantime, you can check out ABLE and GEOI which are popular oil stocks for short-term traders. also, i found FickleTrader's chart on XOM to be pretty interesting as well.

anyway, since i don't understand oil at all, i've been reading this website which talks about how oil drilling works. i also read about how gas prices work, since i've always been curious. its a pretty useful read and theres a lot of other articles to read for fun on the website.


Blogger Frank Chiu said...

Hey buddy,

Yeah, I think it may be easy to make money on oil. Oil can be pretty predictable. Actually the main advantage is that Oil stocks like ABLE and GEOI or whichever else related, are simple to calculate their business. Their business is so heavily tied to oil prices that you can guess how well they are doing. They either drill, distribute, or some other oil operations and when oil prices goes up, they benefit. The only downfall is that lately the oil rise on ABLE and GEOI had almost no effect on the stocks. However, wait until oil surpasses $61 and that may be the key area to focus. Also, Sudi King Fahd just died and oil prices may experience a sudden rise. This is a good start for your insight into the oil sector.

8/01/2005 01:31:00 AM  

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