Stock noob - oil

Cryogenic

Cryogenic

Cryogenic

Associate
Joined
10 Jul 2007
Posts
933
Hi guys,

It seems to me that oil is at a low but the price will go up in future as it is a resource that becomes scarce as time goes on. I work on a lowish wage and rarely have money spend on a new things etc. My only bonus is that my house is cash thanks to my late gramps so rather than dream that the lottery will be my saviour. I wish to remortgage my house, I am able to do this to the tune of 40k, I would like to make 500k no matter how long it takes (Don't even know if this is possible) - my question to the pros is how do you buy an oil future and can you provide a worked example of buying oil the commodity with the strongest broker in the uk, and bypassing oil companies and suppliers - just speculating on the oil the barrel rate going up in the next few years :)
 
So you want to take a big loan that your gonna have to pay off each month for the foreseeable future, to gamble on something you don't understand hoping it will make you 1,250% return?
 
Tefal said:
So you want to take a big loan that your gonna have to pay off each month for the foreseeable future, to gamble on something you don't understand hoping it will make you 1,250% return?
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Couldn't have put it better, to finance this out of a remortgage sounds pretty dodgy, fair enough if you have the readies. This is generally what the big guns of the trading world do but they know their stuff, maybe stick the money in a pension fund, more property or multi ISA's.
 
This strikes me as a remarkably bad idea. I would avoid remortgaging your house unless it was a necessity, certainly not to gamble it all on futures with dreams of multiplying your investment by over ten times.

Many people would desperately love to be in a position of security like you are now and I would suggest a more rewarding and sustainable idea to improve your position would be to focus on career improvement rather than looking for 'easy money'
 
Cryogenic said:
how do you buy an oil future and can you provide a worked example of buying oil the commodity with the strongest broker in the uk, and bypassing oil companies and suppliers - just speculating on the oil the barrel rate going up in the next few years :)
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how do you buy an oil future... - open an account with a clearer or introducing broker who will give you access to the ICE exchange, buy an oil future with whatever trading platform you chose that your broker/clearer supports... then have fun taking random punts/losing your shirt with leveraged futures contracts that can seriously move

how do you buy physical oil - you don't you're a private investor with very little cash, you can't start accessing over the counter markets

what should you do - forget about oil futures or trading the physical commodity

if you really want to get some exposure to the price of oil then perhaps look at investing some money into an oil ETF
 
dowie said:
how do you buy an oil future... - open an account with a clearer or introducing broker who will give you access to the ICE exchange, buy an oil future with whatever trading platform you chose that your broker/clearer supports... then have fun taking random punts/losing your shirt with leveraged futures contracts that can seriously move

how do you buy physical oil - you don't you're a private investor with very little cash, you can't start accessing over the counter markets

what should you do - forget about oil futures or trading the physical commodity

if you really want to get some exposure to the price of oil then perhaps look at investing some money into an oil ETF
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Thanks :) To the other posters, I appreciate all the other comments as well, but as with everything in life - it is risk vs reward, as there is nothing secure in not having much money left at the end of the month even if the house is for namesake :)
 
snips86x said:
Have you read this thread?

http://forums.overclockers.co.uk/showthread.php?t=18635430
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With literally millions of threads on the forum, I must have missed this one ;) Seriously though, those are peeps who wanted to invest in shares hoping the company would not go bankrupt or the price would not fall - which it likely will as that is the stock market for you - even a simple rumour will kill a share.

My gamble is just that - all or nothing on a leveraged bet - not a long term strategy hoping a share may jump 1 point in 50 yrs :)
 
Cryogenic said:
My gamble is just that - all or nothing on a leveraged bet - not a long term strategy hoping a share may jump 1 point in 50 yrs :)
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so why not just go0 to the bookies or a casino, least you can learn that quicker than learning the stock market
 
vanandjuanunited said:
That seems to be the gist of it.
Oh and ask on a computer forum rather than get sound financial advice from a professional
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This is smarter than you think, a professional will always give you 'professional advice' - like invest in a fund, buy a pension, buy buy to let property etc. They will never tell you how to make megabucks by rolling the dice, or buy a lottery ticket ;)
 
Cryogenic said:
Thanks :) To the other posters, I appreciate all the other comments as well, but as with everything in life - it is risk vs reward, as there is nothing secure in not having much money left at the end of the month even if the house is for namesake :)
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wait? but with a mortgage your going to have even less money at the end of the month as you'll now have a mortgage to pay off as well.
 
I don't see how the answer to that is to pull 40k out of the security you do have, increase your monthly liability in the short term, all on hopes and dreams that 40k will become 500k.

Even 50k would probably be considered by many a fairly decent return but that's hardly going to revolutionise your monthly income.

I still think you'd be better served aiming to improve your monthly income, rather than effectively risk your house for what will likely not amount to a huge return.

If you already have no money left at the end of each month, how are you going to pay the mortgage off whilst waiting for this investment to come good? What if it never does? Then you still have a low income but no house to go with it because the bank have relieved you of it.

Risk vs reward is great when you're dealt a crap hand to start with but there is somewhat less merit when you're starting with a good hand, you can afford to do slow and steady and still win the race so to speak.
 
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Cryogenic said:
Thanks :) To the other posters, I appreciate all the other comments as well, but as with everything in life - it is risk vs reward, as there is nothing secure in not having much money left at the end of the month even if the house is for namesake :)
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so how are you going to pay the mortgage on the house in the meantime?
 
Cryogenic said:
Thanks :) To the other posters, I appreciate all the other comments as well, but as with everything in life - it is risk vs reward, as there is nothing secure in not having much money left at the end of the month even if the house is for namesake :)
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If you don't have much money left at the end of the month as it is, how do you propose to make the mortgage repayments :confused:
 
Tefal said:
so why not just go0 to the bookies or a casino, least you can learn that quicker than learning the stock market
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True, but bookies and casinos have a habit of not paying out large sums if you are dead right. They rely on repeat business and terms and conditions, they are not a professional trading platform like the world stock market.

Also, I do not want to become a gambling addict for that 'little bit more', or the next hit after the first great win because a colour is either black or red ;) It is a calulated gamble on crude oil becoming less abundant in the future which governments have guaranteed will be the case :cool:
 
Cryogenic said:
This is smarter than you think, a professional will always give you 'professional advice' - like invest in a fund, buy a pension, buy buy to let property etc. They will never tell you how to make megabucks by rolling the dice, or buy a lottery ticket ;)
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Did you ever stop and wonder if maybe there's a reason for that?

I'm going with troll, no one can really be this stupid!
 
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