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I appreciate you guys trying to explain it to me, so I will bite.
You guys have heard of Putin, right ? Putin need oil to trade at $100, and what you are telling me is obstacle to Putin, It'ss a lack of war on Arabian Peninsula, right ?
I think you are starting to get the idea this isn't the same as a CD. There is a lot of debate and uncertainty.
I'm making a long term play on oil bouncing back. I don't think that the prices of barrels will reach over $100 anytime soon but some of these middle eastern countries and the US cannot keep selling oil for cheap for a longer time. A lot of these middle eastern countries need the barrels to be a certain price to cover expenses and to support their economy. As a consumer, i'm happy that gas is cheap. As a trader, I know that there is a beginning and ending to everything and there are too much polities involve with oil. I'm only investing cash that I can afford to lose in with the UWTI leverage ETN at this time. I have it in a separate investment account that is not tied to my IRA portfolios. If oil bounces back, good for me. If now, well I have blown money on worse things before so I would be okay in the process.
Like I previously said, I personally would not buy or short oil right now. What I have been telling you over and over again, yet you still don't seem to understand is buying an oil etf or etn is nothing like buying a CD with a maturity date. There is a lot of risk and uncertainty with an oil etf or etn, where as a CD is virtually risk free at least when it comes to your initial principal. To confuse the two together shows a great lack of logic and knowledge on your part and any novice investors that have the misfortune to read your bull need to be aware of that. There is nothing wrong with buying oil now, but you can't view it as a risk free investment. However, as of now I would stay away from it unless its a company like XOM etc.
Like I previously said, I personally would not buy or short oil right now. What I have been telling you over and over again, yet you still don't seem to understand is buying an oil etf or etn is nothing like buying a CD with a maturity date. There is a lot of risk and uncertainty with an oil etf or etn, where as a CD is virtually risk free at least when it comes to your initial principal. To confuse the two together shows a great lack of logic and knowledge on your part and any novice investors that have the misfortune to read your bull need to be aware of that. There is nothing wrong with buying oil now, but you can't view it as a risk free investment. However, as of now I would stay away from it unless its a company like XOM etc.
You have miss-understood my initial statement, I compare ETF purchase to CD in terms of maturity date, not in terms of risk. I realize that a CD is fed insured and OIL EFT is considered to be a high risk investment.
It's like a CD, becouse there is a maturity date which is next year. I will re-evaluate my position then. My 2014 long term positions are up around 35%, I think I will make at least that return. In the mean while I am monitoring the price, if UCO drops to $5, I will get more UCO. I will similarly get more USO.
The problem is that you seem to misunderstand me often. and you don't seem to present anything interesting..
You have miss-understood my initial statement, I compare ETF purchase to CD in terms of maturity date, not in terms of risk. I realize that a CD is fed insured and OIL EFT is considered to be a high risk investment.
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OP here...what i bought is an OIL ETN....which is even worse!
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I'm not picking on words, I'm picking on your entire mindset and thought process.
