The thing with getting into stocks, shares, and investments of any kind is, they all come with a degree of risk attached. Sure, some investments can be classified as safer than others, but that doesn’t mean success is going to be guaranteed. Unfortunately, any investor that hopes to achieve high rates of return must be more than willing to absorb the high-risk factor attached; this could even mean they lose their principal funds.
It could be that you are attracted to this level of risk because of the returns, or it could be that you want to do all you can to avoid these risky investments; the choice is yours. That is why we have pulled together a list of the riskiest investment opportunities out there.
Binary Options
What makes these so risky is the turbulence of the market. The prices of listed options rise and fall quicker than a pneumatic drill, and they do so completely unpredictably. In short, it is a turbulent form of investment. As a sort of golden rule, and one that will ensure you don’t fail as a binary trader, is to get serious experience in trading first, and then see if you can handle the pace. After all, it is one of the few investment opportunities that can see you win or lose huge sums of money in an incredibly short space of time.
Futures Contracts
Futures have a big similarity to binary options in that they can be extremely high-risk investments for those who are inexperienced, uneducated and emotional. In fact, if you talk to a group of financial experts, most of them will tell you that trading in futures contracts is just another way of gambling, you just get to do it in a suit and at an office. The reason they will say this is because you are essentially pitting yourself against institutional investors who have far more control and understanding of the contracts they purchase than you will have.
Penny Stocks
This is all about finding the right company with stocks that trade for less than a dollar because, if you do, you can find yourself reeling in huge profits. But finding the goose that will lay a golden egg is no easy feat. In fact, a huge majority of companies that fall under the penny stock bell curve will leave you with an investment volatile and unpredictable, and possible licking your wounds after a big financial loss. Something worth noting about this realm of the industry is that the majority of financial fraud happens among penny stock companies. That is because they often don’t have the capital necessary to move forward or attract investment, and so they provide false information to investors and regulators. So do your Due Diligence and be thorough, super thorough.
Initial Public Offering
These are one of those investments that almost always seem to be promising. However, in truth, these companies very rarely deliver what they promise. Of course, you can find absolute gold with the right company but, as a sort of unwritten rule, try and avoid any company that has no current outstanding shares. The reason for this is there will be no data for you to analyze, and that means everything falls on the projected business model. Risky.
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