Buy UCO (oil ETF)??? Help Novice trader

[sweetjones55]

Hello, this is my first time posting on this forum. I am 23 years old and
just did my first trade about a month ago. I bought around 550 shares of UCO
at $8.53 and sold at around $10.50. I am again looking to buy back into UCO
now that it has dipped below the $9 mark.

Here is my question for you guys, everything I am reading makes it sound
like buying into UCO right now is a HORRIBLE idea. All these articles talk
about how high the oil inventories are and how the demand for oil is very
low. Oil has been following the DJ a lot as of late which has also been
taking a hit lately. Projections are talking about oil going down to about
$70 a barrel in the near future. Basically these articles to me make it
sound like EASY money to just short the oil market. I am a pretty successful
sports handicapper and have noticed that when a team sounds like easy money,
they usually aren't and I am wondering if this is the case also for oil
right now.

Do you think buying into UCO at $8.90 is a bad idea with the intent of
selling in the next two months in the $10 range? I know the graphs are
nothing but history but buying in the $8's has been a good investment
lately. Thanks in advance for any responses.

 

[sweetjones55]

Come onnn no one has any insight on oil?

 

[Coaster]

IMHO
Oil ain't going up in the short term.
Low consumtion in the US this summer and high world wide inventories.
But sweetjones is right......who really knows?

 

[SmallDaddy]

On a slightly related note. Since you are so young, you should think about putting money in a Roth IRA and buy stocks with high yields (like MLPs and telecoms)

5k a year at 8% would make you a millionaire by the time you retire

 

[sweetjones55]

IMHO
Oil ain't going up in the short term.
Low consumtion in the US this summer and high world wide inventories.
But sweetjones is right......who really knows?

Ok here's my next question. Knowing all of this negative information about oil, why aren't you shorting the oil market? I've asked a few people on their thoughts amd most tell me oil looks bad for the obvious reasons but no one can tell me why they aren't taking the info amd shorting it

 

[sweetjones55]

I went ahead and bought in at an average of $8.98 a share. Responses are still welcomed.

 

[1nvestor]

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