Step 1: Oil is the center of our daily lives. And although electric and hydrogen vehicles are in the works, oil is most likely going to stay a necessity for a long time. Therefore, oil makes for a great investment. The difficult part is that oil is quite volatile, so it is important to know how to invest in it.
Step 2: Investing in oil is actually quite simple. It’s just a matter of timing and will power. Here is what you do: As oil is on the rise, buy oil stocks. There are hundreds to choose from. The two largest are Exxon Mobile (ticker symbol: XOM) and Chevron (CVX). Petrobras (PBR), from Brazil, is another great company. It is my personal favorite. Another way to invest in rising oil is by investing in alternative energy stocks. As oil prices rise, people will look for alternatives like solar or wind. A few of the best alternative energy stocks are: for Solar: First Solar (FSLR) and SunPower (SPWR); for Wind: Broadwind (BWEN) and Quanta (PWR).
Step 3: As oil goes down, there are really only three options. a) Just sell your stocks and wait to buy when you get a chance. b) Short the stocks you own. c) Buy airline stocks.
Step 4: These steps are very basic. You should do a lot of research before making any type of investment. As we all know oil prices are a lot lower than they were a little while ago. But most experts doubt it will continue to stay this cheap for much longer. So invest accordingly…