A Guide to Risky Investments
A risky investment means something different to everyone. Some people won’t even invest in health insurance, believing that they’ll never get sick and thus the money invested isn’t worth it. Others are willing to risk hundreds of thousands of dollars to speculate or investing in an HYIP. Your idea of risk probably falls somewhere between these—you are probably willing to pay to gain, but probably not when the odds are far against you.
Risky investing usually means that you have more money on the line and the odds of losing it are higher. The downsides of that are obvious, but the benefits are what make it worth it. Usually a high-risk investment also comes with high profits.
You Can Play the Odds
If you’re willing, then risky investing is sometimes the best way to “get rich quick”. As long as you’re taking precautions and handling the situation with sufficient thought, care, and wisdom, risky investments can actually be a better choice. The more risk you take (up to a certain point) the better the payoff will be if you win. It’s up to you to decide whether it’s worth it or not.
Risky Investments 101
What are some of the investments that fall under this category? Here are some examples:
- A hedge fund. A hedge fund is a private investment club that is free from any government regulations. Hedge funds are high risk because they make quick turnovers and sudden investments, and they are constantly playing the markets. With a few unwise decisions, you could lose all your money and gain nothing. The gain you could get from a hedge fund is also high, due to the same reasons that it can be risky.
- HYIPs. An HYIP is a program that promises higher levels of payouts than you could get normally. It accomplishes this by getting lots of investors to invest, then using the new investments to pay off the old investors. The problem with these is that there are a great many scams out there, and your payouts are often not guaranteed. But if you use HYIP monitoring and make sure that your chosen programs have proven themselves, HYIPs can actually be quite lucrative. Always check with your HYIP monitor to stay updated on new and current HYIPs if you want to be safe.
- Speculating. Speculating is the closest thing to gambling in the investing world. You’re speculating on the outcome, and because there are so many possible outcomes, the odds that you’ll lose are very high. But if you win, you win big, so for some people the risk is worth it. Unlike most forms of gambling, speculation can be researched and the field studied, so that mots speculators can actually have a large chance of winning if they play their cards right.
These are just three of the high risk options around. Risky investing is best left to the pros, and if you’re just starting out, you would do well to stick with something simple and safe. Once you learn to invest and gain experience in the field, then you can start to flex your muscles in these more dangerous yet profitable fields.