Investing is never a sure thing there are always going to be risks involved. You need to avoid these needlessly risky investments. While there is always going to be some level of risk in whatever investment you choose, choosing to go the straight and narrow instead of going with a volatile investment is always a safer bet for getting a return on your money.
There are quite a few investments that resemble gambling. These investment choices are to be seriously avoided at all costs. You could end up losing all of you money by making this one bad decision. It’s not worth 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 types of investments to stay away from are futures and day trading.
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: It sounds glamorous to many people. They think that by watching the stock market all day and buying and selling according to the rises and falls of the stocks they will make thousands of dollars a day. Wouldn’t that be nice if it were true?