I'm a total beginner in investing (I know very, very, very, very little). I did some investing in crypto but that's it.
I want to start learning to invest and I want to start with investing in oil. I have some capital to start on this journey. Since I'm at the beginning and everything is very confusing to me I expect to lose this but my goals for the moment are to learn, not to get rich. That will come later :).
My learning plan is this: buy some oil CFD/ETF/etc and see what happens to the cash that I invest and try to understand why my investment goes up/down (I know a demo account is best for this but I also want to invest some cash in oil as I think that will be productive short term - that is just a feeling of mine)
I have spent the last two days reading online materials and I have a few questions (I apologise to you, the more experienced traders to whom these questions might seem odd):
What would be a good trading platform for me to start trading? I mention again that I'm a total beginner in this. I will start by investing in oil a bit and also my plan for the future is to follow the energy segment. I'm located in eastern Europe (Romania) if that is of any relevance. I have an account on eToro. You can also create a virtual account and practice here which is good and I plan to do. Is this platform a good place for a beginner like me to start. Do you recommend a better one for what I want to do? (starting with investing in oil a bit, learning to trade, investing in the energy market later, etc).
Browsing eToro I looked around and found these things I can buy. This here is described as a CFD (contracts for difference). I have actually two questions about this.
2.1. Here in the description of this it only says that it tracks 'Oil'. It does not however say which type of oil (WTI, Brent, etc) it tracks. I did some searching on the internet for the symbol 'OIL' and found out that is 'Light Sweet Crude Oil Futures'. What does this mean? What causes the value of this instrument to go up/down? For example for USO symbol I understand that it tracks the price of WTI so if the price of WTI oil goes up the price for USO should go up as well. But for the OIL instrument I donot understand what will cause it to go up/down.
2.2. This is a more generic question about CFDs. From what I read and understood about CFDs they track something such as a commodity without you owning the actual instrument. If I think the prices for CFDs will go up I can buy some or if I have some and think the price will go low I can sell them and therefore make profit. I have read somewhere that with CFDs as opposed to ETFs you can lose more than your original investment. But if I buy a CFD at a price now(at price A) and sell it alter at a lower price(price B) then I obviously have a los(price of A - price of B) which is lower than the price of A. So how can you possibly lose more than your original investment?
About USO: USO is listed under ETFs on eToro. I understand it tracks the price of WTI oil. I was interested in this but I see the market is closed and I cannot buy this. How can I find out what are the market hours for this instrument? Do I have to find out on which market it trades or does it trade on different markets and I have to find out from which one of those markets eToro gets them from? How does this work?
Please help me clear this concepts by answering my questions and also please feel free to add any extra information you think might help me :D