If you are seriously considering getting involved in investing you need to make an appoint to stay away from needlessly risky investments. When investing in anything there is always going to be some risk involved. If this weren't the case we would all be rich. You want to keep on the straight and narrow and stay away from the volatile investments in order to have a better chance of getting a good return.
There are many types of investments that look like a type of gambling situation. These definitely need to be avoided at all costs. The risks with these types of investments are huge and you could end up losing a lot of money before you even know it.
Lotteries and casinos are designed to make money. They operate by paying only cents on the dollar. By looking at the numbers it is proven that if you play by their rules you are going to lose money in the long run. The system is engineered to make sure that you will lose.
Two definite type of investments are as follows:
Futures: Investing in futures is simply trying to make money by predicting the future. No one has this information. An example is investing in oil because you think that with the approaching winter oil use will go up and you foolishly assume that will be able to make a profit.
What happens if the opposite of what you had predicted is the reality. Maybe the winter is very mild and the need for heat is lower than you expected. What if a new form of heat is made available to people and they no longer are using oil as you had planned. These to situations just caused you to lose your investment money.
Day Trading: Day trading is a very attractive prospect to many people. The thought of making thousands a day by just making a couple choices would be attractive to anyone.
The truth is that you will most likely never beat the market average and will lose money in the long run.
There are many types of investments that look like a type of gambling situation. These definitely need to be avoided at all costs. The risks with these types of investments are huge and you could end up losing a lot of money before you even know it.
Lotteries and casinos are designed to make money. They operate by paying only cents on the dollar. By looking at the numbers it is proven that if you play by their rules you are going to lose money in the long run. The system is engineered to make sure that you will lose.
Two definite type of investments are as follows:
Futures: Investing in futures is simply trying to make money by predicting the future. No one has this information. An example is investing in oil because you think that with the approaching winter oil use will go up and you foolishly assume that will be able to make a profit.
What happens if the opposite of what you had predicted is the reality. Maybe the winter is very mild and the need for heat is lower than you expected. What if a new form of heat is made available to people and they no longer are using oil as you had planned. These to situations just caused you to lose your investment money.
Day Trading: Day trading is a very attractive prospect to many people. The thought of making thousands a day by just making a couple choices would be attractive to anyone.
The truth is that you will most likely never beat the market average and will lose money in the long run.
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