For many people, the appeal of investing lies in its versatility. It has the ability to complement almost everyone, because irrespective of your financial goals or approach to risk, it is entirely possible to build a portfolio to meet your needs.
For those in search of the biggest pay outs, this means adopting a high-risk strategy, for the more you stand to lose, the more you stand to gain. Certain asset classes fit this criterion far better than others, and it is these that you need to be looking at if you’re on the hunt for profits.
Here, we explore three types of investments that pot hunters might want to consider making…
#1: Spread Betting
Spread betting is often likened to gambling, and this says a lot about the nature of the risks that are attached to it. Those who choose to give it a go are essentially placing a bet on whether they believe the value of an asset will go up or down, and the greater the market fluctuation, the more they stand to win or lose. Such bets can be placed on almost anything, from stock performances to sports, politics, and even reality television. When it goes right, it can be incredibly lucrative; when it goes wrong, losses can be phenomenal.
#2: Contracts for Difference (CFDs)
CFDs are another option that those with a high-risk approach to investing might like to try. They work in a similar manner to spread betting, with the basic idea being to correctly predict whether the worth of an asset will rise or fall. The difference is that rather than betting on this, you buy an interest in it. Should your prediction prove correct, you stand to make some very attractive profits; should it prove incorrect, you could lose far more than you initially invested.
Foreign exchange trading, or forex, is another investment that high-risk traders might want to trust their capital to. Famed for being fast-paced, volatile, and tempestuous, the currency markets are a place where fortunes can be made and lost, and only the most skilled and intelligent traders will succeed. Although there are those who have made their millions here, there are also many who have been left severely out of pocket. However, provided that you have the skill and tenacity to trade successfully, this is one market where hard work really can pay off.
Which assets will you add to your portfolio?