People make mistakes every day when they go it alone in energy investing.
Just look at this…
Last May, the stock price for Petrobras (NYSE: PBR) was around $19.
Fast-forward about a year, and you’ll see that the price bottomed out at about $10. It has since seen a small rebound, but nothing even close to its price before the 46% drop.
I tell you all of this not to bash Petrobras, but to remind you of the volatility in oil stocks.
The Risks of Freedom
When you make your own trades and invest your own money, you have incredible freedom. And with that freedom comes great risk, as shown by the example above.
So to avoid that risk, regular investors give up…
They follow the herd and invest in Big Oil companies like Exxon Mobil (NYSE: XOM) or BP (NYSE: BP). And sure, they saw a return of about 15% with each over the last year.
Not bad… but not great, either.
Most of these big blue chip stocks move WITH the market. So when everything goes well, they do fine… but when everything slows down or falls off, they take a beating.
Of course, you could go to a fund that specializes in oil and gas stocks, but after they charge their fees and commission, you would be left with about the same returns as if you just invested in Exxon or BP.
Truth is, that’s what the elite institutional investors want you to do: sit down, shut up, take your 15%, and give them your money.
The One Thing Every Investor Needs
So what am I getting at here?
When friends of mine come to me and ask for investment advice, I tell them one thing…
Every investor needs a strategy.
The best investors find some pattern or consistent trend and follow it all the way to the bank.
Take this example:
When you have an effective strategy, you can pick small-cap winners like this as soon as they surface and then know when to drop them before they lose value.
And once you find picks like this, the money speaks for itself.
But the biggest problem is that the best strategies require time and effort that most people just don’t have.
It’s impossible to read every press release and earnings report when you work a full-time job or have a house of children to take care of.
That’s why so many people lose out by trying only to trade massive companies like Petrobras, Exxon, BP, and the rest of Big Oil.
And once they lose out, it becomes much easier for them to surrender and pay big institutions to manage their money.
But if you have a time-tested strategy to consistently beat the market without handing over big sums to investment firms, you can do really well — as you saw with the Northern Oil and Gas chart above.
It’s precisely why I’ve been developing the kind of trading strategy individual investors like us can take advantage of.
I’m putting the finishes touches on it right now, and you can expect it to hit your email inboxes next week.
In the meantime, my colleague Briton Ryle has just released an incredible strategy he’s been using for years to bank “daily dividends.”
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.
