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Swing Trading the Stock Market

When Oil Goes Negative

Swing Trading the Stock Market

Ryan Mallory

Business, Investing

4.7828 Ratings

🗓️ 21 April 2020

⏱️ 14 minutes

🧾️ Download transcript

Summary

Something happened in the stock market that has never happened before and that is the price of oil crashing and going below zero into negative territory. Everyone was immediately excited by this thinking, "I can get paid to buy oil", or "gas at the pump is going to be free". All of these fallacies couldn't be further from the truth. In this podcast I detail what oil contracts are, why, negative oil prices only lasted for a day, and why you take on infinite downside risk when you start buying oil thinking you might get paid for doing so.


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*Disclaimer: Ryan Mallory is not a financial adviser and this podcast is for entertainment purposes only. Consult your financial adviser before making any decisions.

Transcript

Click on a timestamp to play from that location

0:00.0

Hey, I'm Ryan Mallory, and this is my swing trading, the stock market podcast.

0:11.3

I'm here to teach you how to trade in a complex, ever-changing role to finance.

0:16.2

Learn what it means to trade profitably and consistently, managing risk, avoiding the pitfalls of trading,

0:22.1

and most importantly, to let those winners run wild. You can succeed at the stock market,

0:27.4

and I'm ready to show you how. Hey, everybody. This is Ryan Mallory with Swing Trading the Stock

0:31.9

Market, and today we're going to talk about oil and when it goes negative, and what does that

0:35.9

mean? Can you just go and get paid for buying

0:38.8

somebody else's oil are you going to be going to the gas station and filling up your tank and

0:45.1

telling the gas intent hey give me $50 no is this really not going to work that way guys it really

0:52.1

is and in fact right now oil carries more risk for the buyer than ever before and if you're going to get into that kind of a market

0:59.8

you really really need to know what you're dealing with here and again i'm not a i'm not a financial

1:04.2

advisor so don't take what i'm saying for the gospel this is these are my opinions if you're going

1:09.7

to get into it you need to consult consult your financial advisor and weigh the risks

1:13.3

behind it.

1:14.0

But I'm going to talk to you about it just from my own personal perspective, understanding

1:18.3

the futures contracts that's, you know, the drive behind this whole thing.

1:22.6

Because it's not like you just, it's not a stock that you're buying.

1:25.8

It's a futures contract so if you logged on to

1:27.8

facebook yesterday i'm sure you saw just gobs people talking about oil went negative oil went negative

1:32.2

hey how can i how can i get paid to buy some oil you know it's a well first of all you're not

1:36.6

you're not buying like a couple of gallons of oil here you're not just buying a barrel if you

1:41.2

buy a contract for the futures you're buying a 1,000 barrels of oil. Where are you

...

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