How To Invest In Oil Like A Pro

Adam Feik - Contributor - Energies

In the last 2 weeks, I've written about oil ETFs and broader energy and commodity ETFs. Interestingly enough, some of those ETFs have switched over to "green triangles" on their MarketClub charts, just within the past few days. Check out USO and DBE for example. DBO (the oil ETF I prefer over USO) has not yet flipped over to a long-term ("monthly") green triangle.

Another way to play oil prices

Today, I'm going to describe a slightly more sophisticated way to bet on rising oil prices. The advantages of this approach, compared to buying ETFs, are these:

• You can place fewer dollars at risk. Yet at the same time…
• You can retain reasonable upside potential, and…
• In combination, you can almost entirely protect your principal, in order to make sure you'll live to invest another day (even if you're wrong about this particular oil bet).

Here's how it works: Continue reading "How To Invest In Oil Like A Pro"