There are investment that comes with huge risk and such investment must be avoided.
Toxic Investments Investors must avoid
- Thread starter Starmix
- Start date
Any company that you can't with the back of your hands point out to the value they offer is not worth investing in. Any company that has not done 5 successful financially profitable years with reasonable profit margins is not worth investing in.
Well the main problem of penny stocks are that it is difficult to obtain information about them, how they work, their debt and other things that can be useful, it is true that it is very risky to invest in them, but remember that Tesla, Apple, Microsoft, amazon and many more one day were penny stocks.
Most people don't have large amounts of cash on hand, so they are forced to buy a property or a car with mortgages and installments, even though the total price of the loan will be double the actual price. Bonds that provide high interest rates are generally long-term bonds, which are difficult to predict and the default risk will be higher, so buy short-term bonds. Currently penny stocks are widely used for short-term investments or trading, and not all penny stocks are bad or considered toxic, but for very aggressive penny stock investors it is a challenge and to test their skills in analyzing stocks.
- Thread starter
- #25
Oh yes, gambling is delicate. One may get addicted to it and if experience series of losses the gambler may turn broke. There's so many became homeless because they sold their property just to have a capital to gamble.
You are right sis, there are lots of crypto, stock and forex traders who stop or fail before 2 years, they generally lack discipline and cannot control their emotions. Even though the types of trading in stocks, crypto and forex carry a high risk, they cannot be classified as gambling, because trading has a basis for both technical, fundamental and sentiment analysis as a reference for traders, while gambling only relies on luck.
