would I have gotten rich if...?

by **wisegoat** » Mon 20 Jun 2005, 13:44:11

Ok, I'm not entirely familiar how the stock market works... but i'm kickin' myself cuz I told myself to buy into oil when it dipped back below $50.. it went to $47 and now is at $58.. that's $11/profit/dollar-invested right? So if I put in $1000 last month, i'd have $11000 today??

my intentions isn't so much to profit off a tregedy, but if I can get some backup money before PO hits, maybe I can buy survival tools and gold etc..

by **mweck** » Mon 20 Jun 2005, 14:02:38

well, you would have made money, but not that much

with $1000 bucks you would have been able to buy around 21 barrels. So if you were able to sell the oil you bought, then it would be 21 X $11 profit, or $231

not too shabby for doing nothing, but not $11k

by **jimmydean** » Mon 20 Jun 2005, 14:10:46

I think companies like VLO (Valero energy) which operates 14 refineries and can process high sulfur crude are still going to do very well the next 1-2 years.

Also I'm very bullish on Encana. Vast natural gas reserves and we really have yet to see nat gas go up.

by **strider3700** » Mon 20 Jun 2005, 14:11:32

23% growth in 1 month? Yeah I'd call that not too shabby. If you're still interested in getting in I'd say there is money to be made. The question is will it drop a bit so you can make even more or is $58 the new bottom? I don't see $60 as being a top so profit can be made.

Oil however is not a stock, You can't just buy and let it ride. At some point 50 barrels of oil will show up with your name on them. Perhaps there is an easy way to purchase and sell oil similar to a stock, I haven't looked into it much.

by **wisegoat** » Mon 20 Jun 2005, 14:21:39

$this->bbcode_second_pass_quote('', 'A')t some point 50 barrels of oil will show up with your name on them.

by **tdrive** » Mon 20 Jun 2005, 14:35:06

$this->bbcode_second_pass_quote('', 'i')t went to $47 and now is at $58.. that's $11/profit/dollar-invested right? So if I put in $1000 last month, i'd have $11000 today??

by **Jaymax** » Mon 20 Jun 2005, 14:44:36

A pretty good primer on Futures Trading:

http://www2.barchart.com/support/futs101.asp

--J

by **MicroHydro** » Mon 20 Jun 2005, 14:47:09

[quote="tdrive"]Had you put 2000 as margin and got one NYMEX oil contract (1000 bbl)[quote]

Hold it right there. That is not how it works. You have to put in 10% as equity and another 10% as margin.

For a NYMEX 1000 barrel contract with present value of $47 per barrel, your opening cost is $9400.

If oil goes up 20% you have doubled your money. If oil goes down 20%, you are wiped out unless you can answer the broker's margin call with more cash to maintain your control over the contract.

Please people, don't get greedy and foolish. Highly leveraged commodities speculation by amateurs usually results in financial losses.

by **aahala** » Mon 20 Jun 2005, 15:30:23

wisegoat, you wouldn't have been rich as you probably would have
spent the increase already on fast cars, fast women or a faster
internet connection.

But you might have enjoyed yourself more. :lol:

by **aflurry** » Mon 20 Jun 2005, 15:33:18

$this->bbcode_second_pass_quote('MicroHydro', 'P')lease people, don't get greedy and foolish. Highly leveraged commodities speculation by amateurs usually results in financial losses.

by **qwanta** » Mon 20 Jun 2005, 15:37:31

Another option are energy ETF's (exchange traded funds) such as VDE:

http://moneycentral.msn.com/investor/pa ... Symbol=VDE
http://finance.yahoo.com/q/bc?s=VDE&t=1 ... z=m&q=l&c=

They are an easy way to spread an investment across many companies without paying the fees associated with a mutual fund, or buying many stocks by yourself.

All you need is a brokerage account....but I don't think you can count on the price rising day after day in a straight line!

in the short term, things could get chaotic.

by **DR_STU** » Mon 20 Jun 2005, 15:45:44

$this->bbcode_second_pass_quote('strider3700', '2')3% growth in 1 month? Yeah I'd call that not too shabby. If you're still interested in getting in I'd say there is money to be made. The question is will it drop a bit so you can make even more or is $58 the new bottom? I don't see $60 as being a top so profit can be made.

Oil however is not a stock, You can't just buy and let it ride. At some point 50 barrels of oil will show up with your name on them. Perhaps there is an easy way to purchase and sell oil similar to a stock, I haven't looked into it much.

by **Jaymax** » Mon 20 Jun 2005, 15:51:38

$this->bbcode_second_pass_quote('MicroHydro', '')$this->bbcode_second_pass_quote('tdrive', 'H')ad you put 2000 as margin and got one NYMEX oil contract (1000 bbl)

by **aflurry** » Mon 20 Jun 2005, 15:52:31

http://www.vicefund.com/

Your investment solution for good times and for bad times.

by **wisegoat** » Mon 20 Jun 2005, 15:53:09

$this->bbcode_second_pass_quote('', 'w')isegoat, you wouldn't have been rich as you probably would have
spent the increase already on fast cars, fast women or a faster
internet connection.

by **tdrive** » Mon 20 Jun 2005, 16:23:20

$this->bbcode_second_pass_quote('', 'H')old it right there. That is not how it works. You have to put in 10% as equity and another 10% as margin.

by **tdrive** » Mon 20 Jun 2005, 16:33:48

$this->bbcode_second_pass_quote('', 'A')ccording to (my understanding) of the NYMEX exchange rules, the required initial margin PER CONTACT is $4,725 (or $3,375 beyond Sep'05) - regardless of the actual contract price or value.

by **Jaymax** » Mon 20 Jun 2005, 17:01:53

$this->bbcode_second_pass_quote('', 'D')on't speculate on futures unless you either know what you
do or willing to lose your cash

would I have gotten rich if...?

would I have gotten rich if...?

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