I guess you didn't go short in oil

Don't wanna say "I told you so!" ... :)

Some months ago I anticipated that the Oil price will go down (see Why you should go short in Oil!). Everyone (like me) who listened to me would have bought some put options in oil and just waited. That's what I did and you should have done this too. I made some fluffy 40+% profit in the past months which could have shown on your bank account as well. It was actually pretty easy to anticipate a decline in oil prices. As I described in the article I mentioned before you had too many optimists in the market who were all saying things like: "The price is gonna rise.", "A barrel oil is gonna cost $200 soon.", "We will never go back under the $100 barrier - that one is gone forever.", and so on.

The fact that there was no pessimist in the market anymore made me a pessimist. One of the greatest investors in stock market history is André Kostolany who once said:

"When the last pessimist turns optimist you need to sell!"
(not literally, but I think you get the meaning)

This exactly happened.

In addition to the missing pessimists we had a general market environment which made declining prices more than possible (keywords: financial crisis, mortgage, lehman brothers, etc.). So all kind of got together and just finalized in the correct conclusion that the oil prices needed to fall.

The last time for today: Told you so! :)

OK, enough with that. How do we get out of this mess now? Most people must have lost some money in their long positions but I hope you still got some cash at hand. Stay tuned for the next article when I tell you how you can make millions out of the current situation.