In recent years, we have seen a remarkable increase in investment in oil and gas. The main reason for this may be the tragic scenario in stock markets around the world, which has forced many investors, to look for alternative investment avenues.
Therefore, investments in oil and gas require a sharp assessment on the part of the investor in determining the oil and gas stocks that he must invest.
Now, before you decide to invest in certain stocks, such as oil sands, or Canadian oil stocks, you need to take care of several aspects. The following are some aspects, which you need to consider before you continue your investment:
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First and foremost, your decision must be based on facts rather than market sentiment. That in no way implies that you must oppose popular views; but it's always better to go with logical analysis, rather than mood swings.
It is advisable to diversify your portfolio and not hang all your expectations in certain areas. This will not only help you get in the long run but will also reduce risk factors. The more diversified your portfolio is, the lower your chances of losing.
A common mistake that you should always avoid is investing your cash reserves, all at once. You must always have a backup, to guarantee you get out of difficult times. Backups can also play a big role in maximizing your returns as well.