Oil stocks trading is now available for the smaller investor. While the large oil companies are integrated fully, and smaller oil companies do exploration for the oil and refine it, the consumer benefits from the end product. And with the technology of today, it is easy to trade the oil stocks.

You should know some facts about crude oil before you begin to invest, such as exactly what it is. It is a sticky, dark liquid, classified as hydrocarbon. That is, it contains carbon and hydrogen. It is highly flammable and is burned to create energy. Derived from this is an excellent source of fuel.

It is the most actively traded commodity in the world today, therefore offering liquidity. Trading is done in barrels. The reason for the preference to light sweet crude oils is because they have a low sulfur content and high value products, as well, yielding gasoline, jet fuel, heating and diesel fuels. A contract unit for crude is 1,000 barrels. There are about 42 gallons in one barrel.

There are many countries today producing oil, but among the top ten are: Russia, United States, Mexico, Saudi Arabia, Iran, Norway, Kuwait, Venezuela, Canada, and China. Russia consumes much less than it produces, and in contrast the United States consumes a third more than it produces.

Once only for the wealthy investor, these days the average and small investor has the chance to trade crude oil, due to new technology. NYMEX requires only a 5% investment or less. This allows for others, less wealthy, to invest in this exciting market.

Once you establish a trading account, whether with a brokerage company or online, you are ready to trade. However, do your homework. Make sure you know everything you can about the oil company in which you plan to invest. Then, plan on how much money you will be investing, and how many shares or barrels you intend to invest in. If you are relatively new at this type of trading, you may want to temporarily use a financial advisor or stock broker to assist in your trades. At the very least, educate yourself as best you can with financial newspapers and daily news information from other sources. And when you are ready, you can responsibly begin trading oil stocks for profit.

For more on the stock market subscribe to our freestock trading newsletter.