5 Dangerous Investments in the World
Good investors must know what are the most dangerous investments in the world. Here is the list.
Investments are riskier for investors who do not know what is doing. However, there are certain investments that is always risky for all investors. High risk and high return will not work with this investments forever.
Here is the list of “Top 5 most dangerous investments in the world” that every investors must avoid:
1. Stock trading
Stock trading is top in my dangerous investment list as stock trading is not at all investing! It’s a greed driven activity to become rich in a fortnight! Trading can be considered as gambling with the stock market and a very dangerous activity. Beginners who do not have any idea about stock market and investing, is the major victims of trading activities!
To understand the dangers behind stock trading, just search and find the name of any stock trader who became super rich through trading!
2. Penny stock investing
What is “Penny Stocks” or “Shell Stocks”? Penny stocks are those that trade at a very low price, have no fundamentals, very low market capitalization, mostly illiquid and the business, management financial performance would be absolutely hopeless.
Major danger associated with the penny stocks or shell stocks are it’s liquidity! “Penny stocks are highly illiquid” and difficult for investors to find a buyer.
Also, no one can predict when these stocks would disappear from the stock market because such companies are either startups or with failed businesses.
3. Digital currencies
Investing in digital currencies add risks to the investors in various ways. Major risk with the digital currencies, such as Bitcoin are, it is not approved or backed by any government authorities or regulators. It also have no guarantee to the investors.
No major companies accepting digital currencies as a payment method and public acceptance to the digital currencies are limited. Also the price volatility is very high to add more risks to the investors.
Computer hackers can steel the currencies if it doesn’t have a secure place to store. Thus, it doesn’t have enough protection with investors hand.
4. Commodity and binary options trading
Options and Binary Trading carries various level of risks. When approaching commodity options speculatively, the capital erosion risks will shoot up!.
However the real risk of commodities and binary options are for those who don’t understand them well and making incorrect assumptions.
Like to trade in the commodity market? First learn how to do it or hire a professional.
5. Buying unlisted or delisted shares
Buying unlisted and delisted shares add up risks to the capital. People buy such shares with speculation of listing the companies to the stock exchange later in the near future. It’s another types of dangerous gambling because of liquidity.
People buying a delisted or unlisted company shares with a speculation on the future listing possibility. Bit, if not listing, the entire investments lost!