Top High-Risk Investments that Can Grow Your Money Fast
“Risks” is no alien term when it comes to investments; it’s just a word that naturally goes with it. This is perhaps the reason why most people feared in investing their money, which is entirely understandable. However, just recently, the number of individuals, who have taken an interest in the potential of investment as a way to grow their fortune, has significantly increased. Some have ventured in the much preferred low-risk investments while those who have a brave heart chose to dip their toes in some high-risk investments.
Listed below are some of these investments that have high risks but can grow your money in a breeze:
Venture Capital Trusts
Venture Capital Trusts or VCTs refer to those companies that aim to help small and starting businesses through considerable investments. This is a noble thing to do, and a refreshing thought, especially since the business world is known to be a place where money sharks are dwelling. However, for someone who wants to secure a good profit from his investment, VCTs is not a smart choice.
VCTs are often unstable businesses that haven’t established customer trust and loyalty yet, so it’s quite hard to predict whether your ROI is what you have expected. Because of the tight competition in the market, most startup businesses fail. However, if these startups have a great business advantage and are manage properly, the possibility of your ROI going ten folds is not far from reality.
Forex trading is a form of business wherein currencies are the subject of the trades instead of stocks and shares. While others are successful in this field, most people are having a hard time gaining a consistent profit. Hence, this form of investment may be best handled by professional traders.
What makes currency trading a high-risk investment is its highly volatile nature. Changes can happen in just a matter of seconds, so it’s quite difficult to keep up. Furthermore, currency trading is not solely focused on one currency but rather in several currencies worldwide. Imagine having to track these currencies all at once; it’s certainly a headache for beginner traders. Professional and seasoned traders have their own tested and proven strategies and tactics to cope with these high-paced changes.
Contract for Difference
The Contract for Difference has been one of the most profitable forms of investment these past years. Its flexibility, accessible, and cost-effective nature lures many hopeful investors to buy an interest in the price movement. CFD investors usually work with a trusted trader/broker to do the trading for them. What’s more, CFD allows you to trade stocks worldwide, which seems like an excellent opportunity to boost your profit.
Of course, just like any other high-profile investments, CFD also has its own risks. One of the obvious risks is the market risk. Since the whole point of CFD lies on the price movement, you have to watch often for the price change, regularly monitor your account, and keen on closing your position once the market moves against you. The bottom line is that CFD trading is not meant for beginners. If you want to play your card in this form of high-risk investment, you have to be ready to lose as well; it’s all part of the risk.