Oil Stocks

When talking about oil stocks, we believe that the stocks of oil companies like Exxon Mobil. World famous oil companies known as the Seven Sisters. Seven Sisters were Shell, Gulf, Exxon. Chevron, Texaco, BP and Mobil. After the merger of Exxon Mobil, they must be known as Six Sisters, but the name still attached. Now investing in oil stocks are a good way to benefit from rising oil prices.

Now is not the oil companies whose shares are only worth investing there are many oil reserves which you can invest in the above names are only the largest oil companies in the world. As always, your investment strategy should be tailored to your trading style. Are you the type to buy and hold investors? In this case, you must select an oil company that has a very good management and reputation and is ready to do business in the long run. Now many companies in the oil sector have also begun to invest in alternative energy. Therefore, your investment in good company can give a good performance.

And if you have short-term day trader or swing trader you should look for the oil sector ETF that mimics a drop of oil on the index. In this way, you can cover the risk of investing in the basket of oil stocks that mimics the index of the oil industry instead of just one of the stocks of oil that can do exactly the opposite of what the price of oil is doing.

Oil stocks can be a good investment into account the fact that oil prices are once again ready to take on the world economy begins to recover from the recession. In 2008, oil prices soared from 60 to almost $ 70 to $ 150 for a few months before the bubble burst. This time, analysts believe that oil prices will easily reach $ 200 a barrel. This makes the alternative energy stocks a good investment over the next decades the world will find a good alternative to oil! Now, many of these oil companies are already trying to expand into alternative energy and therefore your investment can give you a solid return over the long term.