Another type of investing that has gained a lot of attention is day trading. And, unfortunately not all of the attention has been positive. There are those that view day trading as a kind of adventure, a type of game. A rather expensive high stake game if not properly researched and enough attention isn’t devoted to learning the best way to enter this risky investment method. From a standpoint of most other investment vehicles, day trading isn’t investing at all, but rather a way of buying and quickly selling for handsome profits. You can compare it to a one night stand as opposed to a long-term commitment.
Another risky investment vehicle is penny stocks. Trading these have won and lost millions. A lot of the large big name businesses you know today got their start as penny stocks. Many of them unfortunately become penny stocks again when they fall from fame to infamy. Fraud is another land mine to navigate through when dealing with penny stocks. You must make sure you watch your step because one bad move could be disastrous.
As far as bonds go, you are basically loaning money to a business or agency and they have agreed to reimburse you at a mutually agreed upon time. This may not be as risky as some of the types we’ve discussed here, but it is not quite a zero on the risk scale either. On one side of the coin there’s a lot of people out there who would swear by bonds, then on the other side of that same coin they’ll tell you to avoid it like it’s poison.
At least for those of us who have investing in our blood or have recently caught the investing bug there are a wide variety of options at our disposal. And because of that, making the choice itself can be the biggest obstacle in pursuing a sound and secure financial future.
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Sunday, March 29, 2009
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