Hi all, what would your favourite instrument be for a long natural gas position trade/ investment. Im looking for 1 or 2 ETFs that I could hold as an investment and one I could trade in and out of. I am considering UNG and BOIL but have noticed some decent looking canadian products HNU. Does anyone know any others. Dont like UGAZ.
I don't think you want to hold a natural gas ETF. Or any energy ETF for that matter. The roll-costs kill em. These things are NOT designed to "buy and hold". For example: from the bottom in Jan 2016 to the top in Jan 2018, spot oil was up 110% roughly. In that same period.... USO (the oil ETF) was up like 27%. The fact that you would ask, and I mean no disrespect, I would also perhaps suggest you didn't try to short term trade any of these instruments either. You'll get clobbered. Edit: A quick Google search provides the following article. https://www.moneyshow.com/articles/videotranstr-27048/ This chart shows USO in only 3 months:
You can consider trading NG futures. volume is big. so it is rather tradable especially during winter time.
dgaz is the most liquid stock in the pre-market. it typically trades 5M+ shares before 9:30am. it is a great trading tool , but only if you are a good trader.