When the investment becomes a bet

When we think of investing, consider getting a return at the end of our operation. When we think of bet, we expect a return like that in the investment, only that it has a low degree of security and less dependent on us.

investment becomes bet

When you go to a playroom, you can win one or two times in your table, but most likely lose most times. The fact is this: the game room is a business, and made for the house to win. In the field of investment, we must never act as if we were gamblers. And there are financial assets that are closer to the classic slots to profitable assets in the future.

Consider some of these financial assets, perhaps known or unknown to you:

Financial Futures
A future is a commitment in the bag between two parties, a buyer and a seller, who set a future agreement to buy or sell goods or values, but with the prices of these today. Therefore, you can earn as you may lose. You do not know what will happen in the future with the price of good. Perhaps end up by selling a value at given price. This may be the worst financial decision if not familiar with the market in which it moves.

There’s more dangerous in terms of investment in future. The futures are leveraged products. The leverage of these assets produces, in the long run, a greater risk of loss and gain for the contracting parties. It is not recommended for a novice or intermediate investor.

Financial Options
Like futures, options are a kind of contract in which one party acquires the right, but not the obligation, to offer or sell asset at a certain price at a future time. The price is determined at the time of the agreement between the parties, rather than on the future price fluctuations of the asset. Currency or face, the chances of winning or losing are equal for those who decide to invest in options.

There is always a sure way to win with the options. And this is: know in advance the movement in prices of those assets. And to do this, you would need for privileged information given by the stock market sectors in question. Sure, that we need not tell you that it is a completely illegal operation.

So keep this in mind: investing is not risk your money. You have to take risks intelligently and sparingly. Find out what other financial instruments depend on less random and more stock market knowledge, and invest in them.

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