The current coronavirus crisis affected the whole world very badly, especially the economy and finances. Sadly, many people were fired during the strict measures, a lot of companies suffered big losses, people who were active on the market got sick, or even died due to coronavirus complications, and so on. This crisis made many people feel helpless and afraid for their future. Some of them decided that they have nothing to do, but there are those who decided to fight for their families and the future, by finding alternative sources of income.
One of the most popular ways of earning money is trading. People trade everything, including cryptocurrencies, stocks, shares, and also, oil. As we know, oil is a very important part of the global economy, and that’s the main reason why people call it black gold. It’s rare, and the platforms that can dig it up and extract it are also very expensive to build. But, can you, as an investor, have some benefits of trading with oil, especially during the time of pandemic? The answer is yes, of course, you can see a lot of benefits if you know how to do that.
Source: The Economic Times
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So, where do you need to start?
The first thing you can do is to check trading.info and see why people choose to invest in it. Then, you should create a trading account, that will help you meet the other traders who recognized the value of the “black gold”. Choose your profile properties, and you can start your journey with this huge investment opportunity.
Also, we should mention that you won’t need to go to some store and buy the oil in bottles or canisters. Everything will be performed through the platform you’ve chosen for this. You can choose between direct trading, buying shares, or trading oil funds.
Let’s see how every one of those options works:
Source: Microsoft
Direct trading
You need to follow the price of a barrel (a unit that is widely accepted as one and only measuring unit for the oil). As you already know, you will never own these barrels, but you can trade with their price. You will need to invest some money in buying those quantities, and then try to sell them for a better price. When the price is rising, you are able to earn more money. But, if it drops, it would be very disappointing for you, because you will lose some money. That’s why you need to research this market and then join it. Some people wrongly believe they are able to handle this stress, but if you are not ready for this risky business, it’s better for you to wait for a little, or even give up on the idea if you only want to play safe. Many of the trading platforms offer a demo period, where you can check all the possibilities, and decide if you want to continue with these actions.
Source: Cryptoversal
If you are not ready to invest in oil directly, you can always choose the option to buy and sell oil shares, provided by the biggest world companies in this business. But, if you decide to do this, you should not only follow the price for a barrel, but also the worth of the companies that work directly with it. For example, some prices may drop if the company is losing for some reason, or it may rise, and you are the one who needs to follow the market carefully. Some unwanted incidents may also happen, like spills or other catastrophes, which also may result in price rise or drop. Also, you can do this through the brokers who are available online too.
Source: Investopedia
Trading with funds
You must follow the funds that directly affect the price, and they are different than share funds. This way is pretty unstable and not secure, sometimes these funds can be very expensive, and you need to pay attention to a lot of factors that may affect the price. So, the beginners are avoiding it, and even the most experienced traders think it’s too complicated, and stick to the two ways we described above.
Source: Anadolu Agency
The COVID-19 pandemic is still affecting the whole world very badly, in almost every aspect. People rarely travel, so oil consumption is pretty low, and the demand dropped. Many experts think that this stock will never fully recover after the pandemic ends, because many people live a different life now, appreciating more what they already have, instead of running to something that is unknown.
So, can people really earn money by trading oil stocks? We can’t be sure. There is a chance that the market will recover when the people will start traveling again, so the consumption will be high again. But also, people learned that there are more important things than that, especially they learned how to appreciate their freedom, and the love they share with their friends and families.
The current situation with the coronavirus is not promising. The virus is unpredictable, and the doctors still need to research it, and the possible medicines or vaccines that will stop the spreading. Another problem many countries have is people’s ignorance and irresponsibility. Sadly, many of them don’t even respect the basic rules of the fight against COVID-19, such as wearing masks, practicing social distance, and washing the hands regularly.
We can say that the pandemic is still affecting these stocks, making the price unstable, so investors are not always sure if it’s worth investing in oil. But, at the same time, there is always hope that things will soon be better, so people are buying low-price stock and barrels, so they can sell them later when this liquid gold will be again on a high-demand.
We hope you find this article helpful, as we tried to describe every aspect of the stocks in a time of the pandemic, and the potential benefits and risks of your actions on the market. Also, we can only hope that people will finally realize the risk and start respecting the protection rules.
