As Effie Trinket states in The Hunger Games: "If you put enough pressure on coal, it turns into pearls!"
Although a completely inaccurate statement, I do agree with the message.
Today, I jumped from the deep negatives to making a profit-a miracle in and of itself-much due to the success of my energy stocks.
As I stated yesterday, I purchased PDC (Pioneer Drilling Company) and PCX (Patriot Coal Company) at very low prices, and I have since made $650 and $332 from each stock, respectively.
Thank you District 12!
Although I was quite skeptical of my new volatility strategy around noon, my new stocks have made me $2,846.65 (without taking into account my losses from selling my old stocks).
So, as I sat, calculating my earnings, I couldn't help but ask myself: why are commodities so volatile?
I speculate that there are several reasons. Commodities are very dependent upon demand, so speculation and optimism contribute greatly to the value of the stock. Furthermore, many uncontrollable events, such as mines collapsing, natural disasters, etc, may disrupt the supply.
Well, here's hoping that pearl-making conditions are optimal tomorrow and that King Coal still reigns.
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