Did you hear what happened on 20 April 2020 (Monday)?
The first time in history, the price of US Crude Oil dropped so low, the price was in the negative readings!
You’re saying “so, who cares?”
Listen, I’m no expert in Commodity Trading. I’ve lost THOUSANDS of dollars trading commodities. But you know the saying “Buy Low Sell High?”
Crude Oil hit an all time low price on 20 April 2020 (Monday). Why?
The Corona Virus Pandemic has caused:
- Restaurants ordered to close down
- Fast Food Restaurants only taking drive-thru orders
- Grocery stores cutting back on shopping hours
- Food Courts are empty of patrons – only taking ‘to go’ orders
- Whole cities of people asked to stay in their homes
- Public places like public libraries have closed down
- Concerts have been cancelled
- National & International Airline travel has been crippled
- US Military training and deployments have been cut
- Sporting events cancelled / Sports Arenas closed
- Concerts cancelled
- People have been ordered not to go to their workplace
- Schools are closed
- Movie Theatres are closed
- Disney World Closed
- Disneyland Closed
- and more…
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All these activities have a ripple effect and dropped the demand for Crude Oil while more crude oil is still being imported from the Mid-East.
You see crude oil is used to produce:
- Gasoline
- Diesel Fuel
- Jet Fuel
- Heating Oil
- Lubricating Oil
- And more…
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Bottom Line: It comes down to SUPPLY and DEMAND. The DEMAND for gasoline has dropped like a rock cause most folks are staying home because everything is closed because of the Corona Virus Pandemic. At the same time Crude Oil is still being imported from the Mid-East. Crude Oil prices are at an all time low.
And guess what other commodity is at a ‘hit bottom’ low price? Did you say Unleaded Gasoline? You got it Unleaded Gasoline.
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DON’T BELIEVE a word I’m saying. Go to Google and type in ‘Commodity Futures Charts’ for Crude Oil and Unleaded Gasoline. You’ll see both charts dropped like a rock. They bottomed-out! There’s only one direction for the prices to go – UP!
Will the prices of Crude Oil and Unleaded Gas eventually recover? Sure they will but it may take months. At least till after the Corona Virus Pandemic is completely over.
In the meantime, in my humble opinion, this is an opportunity to make some money by getting a Call Option Contract(s) [predict price will increase] on Crude Oil and Unleaded Gas. I’d get Contracts that are MONTHS into the future to insure you have time on your side cause the prices of Crude Oil and Unleaded Gas will go up.
My best advise is to see a local Commodity Broker who can give you the best professional advice in investing your hard-earned money.
My even better advice is to STAY THE HELL AWAY FROM ANY Day Trading. Day Trading is only for the very experienced commodity traders. If you talk to a Commodity Broker that wants you to Day Trade your money – RUN. Go find another Commodity Broker.
Commodity Brokers have a Win Win job. Whether you make money or lose money on your commodity trading, the Commodity Broker always makes money by charging you a fee on each trade whether it’s a Call Option (predict price increase) or Put Option (predict price decrease) or what I call a regular Contract, Going Long (predict price increase) or Going Short (predict price decrease). So make sure you find a good Commodity Broker.
I just talked about 02 Commodities of the 30-some Commodities like:
- heating oil
- lumber
- wheat (my very 1st trade, I double my money)
- sugar
- corn
- oats
- rice
- live cattle
- feeder cattle
- gold
- silver
- platinum
- copper
- cotton
- orange juice
- coffee
- cocoa
- more,…
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