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Oil Prices and Stock Options

Oil prices have continued to go up in recent months and it seems that the days of filling up your tank for under $20 are long gone. Perhaps gas prices will never come down to the way they were back in the mid-90`s, but it seems irrational that anyone other than the big oil companies are benefiting from these price increases. While those who are on line buying gasoline express outrage at Exxon-Mobil`s $36 billion profits for 2005, the largest annual profits ever reported by a public company, those who are, online trading stock are looking for a way to capitalize on what appears to be a sure thing in 2006.

Whether it is the War in Iraq, Muslim riots across Europe and the Middle East, or the inevitable confrontation with Iran over its nuclear weapons program, it seems a good investment for, stock trading or commodity trading to take a position to profit from increased oil prices. But before investing in a sure thing, it is important to note the timeless wisdom of Jesse Livermore. In the fictionalized account of his life and philosophy, Reminiscences of A Stock Operator, Livermore reminds us that ?among the hazards of speculation the happening of the unexpected -- I might even say of the unexpectable - ranks high?.?

In taking his position in Coffee in 1917, he noted that, ?the rise was so sure, so logical, that I figured that I simply couldn`t help making several millions of dollars. But I didn`t.? Livermore tells the story of his commodity trading in the coffee markets in 1917. With consumers howling over $2.50 to $3.00 gas, and Congressional elections on the way, perhaps in 2006 it might benefit those trading stocks or commodities to remember another quote from that 1923 classic: "There is nothing new in Wall Street.".
Reminiscences of A Stock Operator has been studied by successful investors and traders in the markets for more than 80 years. It is cited by more successful traders as the single book most influential in their success.