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A golden idea for investment adventurers

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If you like risky investment, the following ideas will make your investment interesting without taking great risks.

  • 1. Pragmatic: Try to be an investor competing with Wall Street in a short time. What you have to do is take risks actively. You may be able to surpass the overall market performance for a year or two in a row, but it will be very difficult to surpass it for a long time. It will be very interesting to try to play. After a long time, your ability will also improve. Keep going. Never risk all your money.
  • 2. Diversity: Even if you are willing to take risks, you are unlikely to be rewarded after every risk. The market is large, and assets are priced as part of the whole market. If you put all your eggs in one basket, you may lose more than you gain. We will further diversify investment into different areas and reduce unnecessary risks.
  • 3. Isolate risk: For some investors, taking risks is really interesting; Investment has become a hobby. This hobby has more returns than many other hobbies, which is not bad. It is better to separate the money that has been carefully invested for a long time from the money that is interested in investing. If you can invest 80% to 90% of your money cautiously, and then save your income in the same proportion, no matter what risks your investment faces, your savings will continue to increase.
  • 4. Watch out for options: In the long run, the expected return of investment options is negative. Options belong to zero sum game – one investor’s victory comes at the expense of another’s failure. To make matters worse, the rules of the game are very unfair: the middleman will charge a commission, and you can’t expect to get the money back. Investing in unsecured off take options may seem like an easy way to make money, but it will make you bankrupt. (If you don’t even know this, you can’t do it well.) As expected returns are the same, options are as exciting as gambling. The company always wins.
  • 5. Short selling: The operation of short selling stocks (or other assets) is very dangerous. It means that you expect the stock price to fall, so you can borrow others’ shares to sell them, buy them when the stock price falls, pay off debts and make a profit. Keep in mind that buying stocks with the old method has infinite appreciation potential. There is no absolute limit to how high the share price can rise. Unless you buy a stock with all your money, you may suffer 100% loss. But if you short the stock, you will definitely lose. You will lose endless money – more than you own, and the price of the stocks you short is capped.
  • 6. Private investment: Maybe you have some money on hand and want to invest in emerging industries or real estate. Many experts in these fields have lost a lot of money due to investment failure. If you are new to investing, find someone who doesn’t make you money and help you make wise investment decisions.

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If you are an investment adventurer, the above ideas will help you. Even if you invest some money for fun, you will not lose a lot of money. Remember: your family will have to rely on your investment to retire or go to college. It is your responsibility to ensure the safety of the money.