10 Investment Markets Worth Trying

Some investors have a higher propensity for risk than others. This makes certain markets good for this group while those who are more risk-averse should stick to other alternatives. We provide five options for each category.

Patient investors may double their initial investment. However, some prefer a swift gain. The danger of losses (or profit) is greater, so investors need to obtain the advice of a broker.

The all-around riskiest investment is margin forex trading. The private investor is advised to read up on what is forex trading and how does it work and to get expert advice from a broker. Although you can loan money to trade, all losses are for your account, and this may be higher than what you put in.

When you consider buying options, you are likely to receive a warning that it is speculative. An option consists of a contract signifying that you may want to sell or buy a commodity before the contract terminates and includes a fixed price. You are not obliged to take action. It is the time factor that makes it risky.

Companies are required to be transparent in the information they disclose on their IPOs. This does not mean that management will act correctly to ensure that the business succeeds. Low-profile IPOs may lead to significant gains.

You can invest in a start-up venture. As a new company and product, it hasn’t been tested in the marketplace. Thus, it may fail, in which case you would lose your investment but have no other liability.

Investment in bonds or stocks of an emerging country offer the potential to benefit from its growth spurt. However, this may be short-lived. Politics often derails these markets.

Short-term investments may suit the timid investor. You lose out on the higher potential gains of long-term markets. But you steer clear of the hazards they pose.

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Make comparisons at various credit unions or banks to get the best interest rate. You won’t lose your initial investment, nor the interest earned. But you may not keep pace with inflation.

Corporate bond funds are issued by companies to pay for their expansion. They are low-risk and interest is paid out two to four times per annum. Because you invest in a basket of businesses, poorly performing businesses won’t have a major effect on your returns, but losses are possible.

This form of bank deposit offers a better interest rate than other savings accounts. However, you are required to invest a bigger amount. Inflation tends not to affect them in the short term.

Similar to bank accounts, these are provided by brokers. They operate much the same as savings and checking accounts. There is no monthly limit on how often you can withdraw cash.

A CD provides you with higher returns than other bank options. You are required to keep money in the account for an agreed period. The option exists to withdraw your investment and place it where you can earn more interest.

Once you are clear about the level of risk you are willing to take (high or low), you can start investing in one of the five options for that level.