Why You Should Invest In the Natural Gas ETF by Jay McGee

A wise investor knows that in order to succeed and to make money investing, they must diversify their investment portfolio. Take a look at one of the greatest investors ever, Warren Buffet. Look at the number of companies that are under his direction at Berkshire Hathaway.
Owning a Natural Gas ETF can help you diversify your portfolio. You can think of Natural Gas ETF as a Natural Gas Mutual Fund.The world needs energy. Increasing populations and the raising of living standards will create new demands for energy. Natural gas is used to generate electricity at power plants. Do you think energy usage will be going down with today's electronic needs?

You can easily trade the Gas ETFs. These ETFs are traded like stocks. You and enter buy and sell orders, stop and market orders. You can trade the ETF through your stockbroker. There are several Natural Gas ETFs to trade. Some are based on the natural gas futures contract on the New York Mercantile Exchange. Others are based on various oil and gas exploration and production companies.

Since they trade like stocks, you can use your existing stock account to trade them. You can even trade them in your IRA account and your SEP-IRA account. You can enter orders as you normally do with stocks. You can enter market orders and limits orders. You should also use a what is known as a stop-loss order to automatically get your out of the market when the price goes down and you want to sell it out without having to watch the market minute by minute.
This is a great vehicle to invest in the energy sector of the market. The world is expanding and with the recession seeming to end soon, you know demand will be up again. You won't want to be caught out of this market when it heats up again.

Simply put, to round out your investment portfolio you should include a Natural Gas ETF.

About the Author
Jay McGee has been a writer and investor in the energy markets for over 25 years.