Investing in Energy is an essential primer on this lucrative market. It guides the reader through the basics of getting started in energy trading, before outlining specific trading and investing strategies. Michael has masterfully explored the history, chemistry ,and economics of energy. Coupled with his understanding of investor psychology and markets he clearly illustrates investing opportunities for a wide range of investing styles. Read this book to be enlightened and equipped for successful energy investing.
The book contains four parts. In part I, you get all of the basics you need to get started and to understand the broad range of this market. Part II describes the many ways to trade in energy, including direct ownership of stocks or commodities and “packaged” methods (exchange-traded funds, commodity index funds, and mutual funds, for example). Part III moves beyond the ways to invest and presents specific trading and investing strategies. And part IV summarizes the entire book and offers ideas for focusing your analysis and understanding of this complex and high-volume market.
As you read through this book, remember the primary purpose: To provide you with the tools and range of knowledge you need to make an informed investment decision. Many traders focus on a narrow range of indicators to determine how, where, and when to enter trades. For example, you might focus only on chart patterns or earnings reports to buy or sell stock, on world oil prices to invest in energy commodities, or on seasonal temperatures to time entry into heating and cooling stocks or funds. All of these make sense, but all are only part of the broader picture. This book does not propose any one method over another; its purpose is to present you with a study of the entire market. This study is presented from the point of view of individual investors (or as Wall Street cynically calls them, “retail” investors), those who, like yourself, want to understand the strengths and weaknesses of a particular sector, the range of methods for trading in it, and the risk levels associated with specific products.
Even if you have considerable investing experience and are familiar with the market in general, you will benefit from the information provided in this book. Fundamental analysis tends to focus on individual financial results of companies, and this is a shortcoming of how and why anyone picks products (stocks, bonds, ETFs, commodities) and sectors (energy, for example). However, there is much more. This book focuses on the fundamentals of the sector, which encompass far more than the profit and loss, cash flow, and dividends paid by energy companies. In this regard, the fundamentals are expanded to include the nature of a particular energy product (supply and demand, utilization, geopolitical influences, and other fundamental and economic realities).
Most investors think immediately of the cost and use of oil as the energy market—and for good reason. Oil represents a major share of the worldwide energy market, not to mention the heaviest volume of futures trading. It is the giant of the energy sector. However, people often overlook the many other types of energy products, how they are created, where they are used, and the types of investment opportunities they present.
- A Brief History: Black Gold, Texas T
- The Big Picture: Energy, the Biggest Market Sector
- The Many Uses of Energy Products
- Opportunities and Risks
- Trading in Energy Futures
- Energy Stocks
- ETFs and Index Funds
- Knowing Your Risk Tolerance
- Using a Broker versus Going on Your Own
- Fundamental Analysis of the Energy Market
- Technical Analysis of the Energy Market
- How Energy Trades Are Taxed
- Ten Mistakes Investors and Traders Make
- Ten Myths of the Energy Industry and Futures Market
- Ten Ideas to Launch Your Investment Plan
Investing in Energy: Creating a New Investment Strategy to Maximize Your Portfolio's Return By Michael C. Thomsett pdf