Home / How to Buy Oil Stocks: Tips and Full FAQ

How to Buy Oil Stocks: Tips and Full FAQ

How to Buy Oil Stocks

We have answered a lot of your questions here on Buy Shares In. We have told you all about buying shares in certain companies, on certain exchanges and more. But there is much more to learn and in this guide we’ll help you out with a commonly asked question, “How to Buy Oil Stocks?” as well as many related questions.

How to Buy Oil Stocks?

So, before we get to the tips and other advice, let’s get the basic questions out of the way first: how to buy oil stocks?

The first thing you need is a broker or a share trading program. These will serve as your middleman to the stock exchange, and while they used to always be on the end of a phone, these days the best ones operate online. Such companies include Halifax Share Dealing, but there are many more out there and there are also independent brokers who will make the connection to the stock exchange for you.

Should I Invest in Oil Stocks?

How to Invest in Oil Stocks

This is often the second question we are asked after, “How to Buy Oil Stocks?”. Many first time investors want the advice, but they also want to be told what to do, and this is very risky. There are many so-called experts who will happily tell them what to do. And because of the confidence they exude when they say this, and simply the fact that they are saying it to begin with, it leads the person asking the question to believe that it’s a guaranteed thing.

As a result, they tend to invest more than they can afford to lose, expect everything to go well, and then panic when it does not. We have seen investors get into a big mess because of this. Some of them have invested more and more as the price continues to fall, believing that it would come good eventually. But that’s not always the case.

So, stop asking these questions blindly and start doing the research yourself. These tips should be there to help sway you slightly toward one decision or the other, they should not be there to completely make your mind up for you. Only then can you truly understand what to do.

When to Buy Oil Stocks?

There is really no set time of year when it is better or worse to buy oil. However, the price of oil is a good indicator for when it is a good idea to buy and when it is not. If you’re looking to invest in blue chips, where stability and dividends are the main goal, then any time is probably good. If you are looking to invest in penny stocks and to take a chance, then it might be better to wait of when the price is rock bottom. There is a chance you will lose it all, but there is also a chance it will shoot up and you’ll earn a small fortune.

Such is the beauty of penny stocks, and few penny stocks are more volatile than oil stocks.

What Oil Stocks Should I Buy?

It all depends. There are blue chip stocks and there are penny stocks. There are upsides and downsides to both of these and they will both will affected positively and negativity by the changes in the price of oil.

Just bear in mind that while they are all dependent on this price, there are many other factors at play. Some oil stocks might be in debt, others might be wasting a lot of money digging for very little oil. Some companies may have just hit the black gold jackpot or are about to do so, others will already have access to plenty of the stuff and others still will be struggling to keep any flow at all.

Is Now (2017) a Good Time to Buy Oil Stocks?

Is Now a Good Time to Buy Oil Stocks?

Right now, oil is low, but it has been up and down over the past couple of years. We have been through a mini crisis of sorts lately and during that crises it was a decent time to invest because oil was so low. Right now, there is a lot of uncertainty around the world and that makes it hard to predict success in any market, especially oil.

The best thing you can do is to see how the markets respond to gradual changes in global polities and to stake your money when you think that things are going a certain way.

Are all Oil Stocks a Good Buy?

Typically, yes. The reason so many of you are asking how to buy oil stocks is because we’re all told that they are an essential part of any portfolio. This is true, but we would personally recommend that they form a small part of that portfolio. This market is just too volatile to sink too much money into it.

What is the Stock Symbol for Oil?

There is no stock symbol for oil, because it does not trade as a single company. Instead, it is a commodity that can be bought and sold on forex trading and CFD trading software (see our Plus500 Review to learn more) and it is also something that many mining companies rely on. You can invest in those companies and they will have a stock symbol, but that symbol is different for every company.

So, the first thing you need to do is to decide which companies you want to invest in and then find the tickers/symbols for each of them. Once you have read this How to Buy Oil Stocks guide, you can find other info on oil companies throughout the Buy Shares In website

How to Buy Stock in Oil and Gas?

Buy Oil Stocks

There are many oil companies that also have some involvement with gas, as they often go hand in hand, just like all mining companies tend to mine silver and other precious metals as well. Such is the case with Leni Gas and Oil, a company that has had a very tough 2017.

There is more money in oil than there is in gas. But both can be very lucrative and a struggling oil company may be able to stay in the black thanks to its involvement with gas.

How Does the Price of Oil Affect the Stock Market?

You have probably heard that the price of oil affects the value of the market on the whole, but why is this? Well, oil plays a huge role in the market because its influence can be felt throughout. The economies of many countries are reliant upon it, and the biggest stocks are reliant upon those economies. When oil suffers, then so does the country’s currency and its value in relation to other currencies. When that deflation happens, all of the major stocks, from power to banking, struggle. And when that happens, there is a knock-on effect that has serious implications for all companies on the national stock exchange.

A reduced oil price and a suffering oil market is often bad news for everyone, except those who have hedged their bets by sinking their money into alternative markets of course. Speaking of which…

How Can I hedge My Bets Against Oil?

You might think that the best way to hedge against oil is to invest in green fuels and other alternative fuels. But when oil suffers it is because the pries are too low and the companies are not able to profit. They flood the market with cheap oil and the consumer marketplace benefits while the stock market suffers.

Because of this flood of cheap oil, the attention is diverted from green fuels. Still, those companies do have more stability at these times and they do provide a decent option for investors looking to get involved with something a little less volatile. You should also look to invest in markets that have no connection to the price of oil. Tech stock is usually a good bet for this, but there are many more.