As hard as we work to provide for our families, it’s completely natural that many of us have some money making endeavours on the side of our day jobs. Some of us download money making apps and use them every time we go about our shopping, our exercise routine and daily activities to make a little extra here and there. Every little helps, right? Some of us even take on a second job or have a fledgling enterprise going on the side. Yet others choose to enter the realm of investment.
When you’re new to the investment game, it can look like a digital las vegas with website after website making promises of big gains with little initial financial outlay. Surely, you think, this must be too good to be true. Here we’ll look at some investments that may be too good to be true, how they could go wrong for you but also how they could be made to work with the right strategy. After all…
There are more bad investments than bad investors
Unless you fall afoul of investment fraud or a ponzi scheme an investment is rarely inherently good or bad, but your investment strategy, or lack thereof, certainly can be. Incidentally, here’s a useful guide to identifying a ponzi scheme. While few investments are inherently bad, it’s never a bad idea to go in with your eyes wide open and invest smart. Let’s look at some investments that typically give neophytes pause.
This is a wily one, and topical too! Recently bitcoin hit an all time high before falling by 20% in mid December 2017. Does this mean that the bitcoin bubble is about to burst? Not necessarily. While there are many within the financial services industry who decry the cryptocurrency, it’s proponents counter, “Well, they would”. As it’s unregulated and not tied into any nation’s economy nor to the value of (for example) precious metals, it’s little surprise that it would make the banking industry nervous. Despite the recent dip there are some heavy hitters in the investment world making a lot of money from it.
Bitcoin is one of the clearest illustration of treading carefully. Invest small while the market is in a clearly tumultuous state.
Forex sounds complicated but it’s essentially the strategic trading of foreign currencies (foreign exchange) in order to make a profit. Be very wary of anyone who tries to make Forex trading sound simple, because it isn’t (if it were everyone would be doing it). Find a reliable broker like these guys at http://trustedforexbroker.com/ and be wary of anyone who wants you to invest bigger than you feel comfortable with.
The value of gold and silver is currently at a low, and there are two ways of looking at this. It’s either a red flag or a temporary slump. Many seasoned investors plump for the latter. After all, precious metals have been valuable commodities throughout human history. Precious metals are a decent investment that many hardcore investors use to hedge against inflation since they, unlike, currency, are insulated from the highs and lows of the 21st century economy.
However you choose to invest, do so through a trusted broker or financial advisor. They’ll generally save or generate more than they cost!