According to the film, Eduardo Saverin made $300,000 in one summer betting on oil futures. Movie Zuckerberg says that if "you can read the weather, you can predict the price of heating oil." How does one go about doing this? I just need a summary, and then maybe a few links to point us in the right direction.
I would stay away from this advice. It sounds like just about any other get rich quick scheme. You unfortunately can't avoid the fact that you have to work hard.
Ya people definitely do that mainly in the futures market. It's sorta like how natural gas prices tend to go up during winter time.
It seems legitimate enough. It's still investing, but with the added knowledge of meteorology. I think it's very likely other people invest in oil futures based on their knowledge of the weather, and are getting decent profits from it. Just not $300,000 in a summer, because that takes the genius (and luck, probably) of a man like Saverin.
I just want to know how to invest in oil. Is it similar enough to investing in stocks? Are you just investing in oil companies? How does one (to quote the movie) 'invest in oil futures'?
Unless you have substantial capital I'd shy away from directly trading futures due to the margining. If you want to own gas or heating oil look into manages futures accounts. There are some natural gas etfs. UNG is one...if you want heating oil just buy a crude etfs.
Yeah, I agree that you need a substantial amount of capital. This is not an easy market to invest in. I wish you the best however. Let us know how it goes.
I've been investing for 20 years, and I choose not to mess with futures myself, nor do I buy and store the physical commodities. I stick to ETFs that buy the commodities, and I will buy and sell those ETFs as needed if I decide to increase or decrease my exposure to any of those commodities. Less of a hassle than holding, storing, and securing the physical commodities, and less risky than betting on where the prices of commodities will be in the near future.
How big should my capital be for me to make a decent killing investing in oil futures? (although, all of your comments seem to be putting me off the idea)
