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What are some of the riskiest investments that you can invest in? What gets the most on returns and the least?


What are some of the riskiest investments that you can invest in? What gets the most on returns and the least?

I have to agree with the 1st responder. Commodities are extremely risky. The reason they are is because they are purchased as futures on very low margin requirements--10%. And such events as a droubt or a freeze in Florida or Russia buying up the entire soy bean crop can cause prices to advance dramatically. Or in the recent case of oil and natural gas, prices can fall dramatically. In either case if one is caught on the wrong side of a position, the results can be catistropic, as a hedge fund recently discovered with their natural gas positions. Currency trading on the Forex falls also into that category as margin requirements are similar.

Similarly commodities and currencies and also yield the highest returns. Anyone who shorted oil back in June made a ton of money. In fact could have easily become a millionaire overnight. Similarly anyone who had shorted the dollar 3 years ago would also have done very well or bought gold contracts.

Someone mentioned selling naked calls as being very risky. That is a common belief but is not supported by the facts. There are instances, very few instances, where that strategy does yield large losses but in general it is a very rewarding strategy, yielding good returns about 85% of the time.

T-bills yield about the least returns of the sophisticated investments. Savings accounts by far yield the least returns of the un-sophisticated investments. And perhaps whole life policies. And social security contributions. ROI on social security contributions is about a negative 5 to 25%.

Commodities.

commodities are definately very risky. you should not consider futures, as they are not for the average investor.

any stock that sells for under $5 is a risky investment. they are priced that way for a reason, contrary to some people's beliefs.

as of last week, the industries with the highest % of stocks making new highs are:
oil and gas (50%)
chemicals - fertilizers (27%)
banks - money centers (25%)

i would probably avoid the airline industry until they get their act together...

hedge funds are the riskiest in my opinion

The more risk the more your expected return but the key word there is expected. You don't always get it.

Online HYIP's and Paid to surf programs are the riskiest investments online that I have come across.

The riskiest HYYIP's are those with no contact details. The next riskiest are those paying unsustainable returns. Anything over about 15% a month gets difficult to maintain on a consistant basis for any length of time. Up to 15% is achievable IF the admin investing in industries like Forex or Sports betting with SUCCESSFUL traders or Sports betting experts handling it for them.

I can consistantly get returns of around 20% a month trading Forex myself, and I know of one particular trader who achieves an average of well over 50% profit a month, month in month out, but he is possibly one of the best traders in the world.

Even more risky are the "Paid To Surf" programs. They promise returns of 5 to 15% a day for 10 to 20 days, in exchange for you watching a series of website ads each day. They claim that this is legitamite advertising, but in reality its all based on a Ponzi principle, with new money paying previous investors each day.

Selling a naked call (that is really the term, really) is very risky.

RISK and RETURN go hand-in-hand. The greater the risk an individual is willing to take, the more his expected return to compensate for that risk. Expected return is simply the average return one should receive based on market statistics and risk measures--CAPM. (Expected Return= Risk free rate + (Market Return - Risk free rate)*Beta of stock) This evaluates what you should receive for a given stock.

Now, speaking in terms of typical investments into the equity market, "penny stocks" are by far the most risky. I am not talking about stocks under $5 (because even a few NYSE stocks are under $5), rather speaking of the stocks that trade for pennies on the dollar on the PINKs. They are far more risky because they don't have to fully report to the securities and exchange committe and don't have to submit all fiancial statements. Also, because one may trade at $.01, a move of another penny comes out to a 100% gain/loss!

Speaking outside equities, foreign exchange markets are the most risky due to their highly leveraged trading. There are some places where an investor could receive 200 to 1 leverage. So if you utilized all leverage on say, a $1,000 account---you actually would lose $200,000 if you went bust!

penny stock bullitin board stock anything that you get in any email, or anything that just whent through the roof in value. any investment that you just can't pass up or can't think about and decide tomorrow

Invest in wildcat drilling, if they find oil you make a lot but chances are they won't...

The riskiest stuff I've ever dealt in is the FOREX (Foreign Currency Exchange). Quick rewards, or quick losses. I suggest you take a look at some of the articles in 'Investing' and 'Currency Trading' at http://www.hammocksurvivalguide.com/
You should find some useful advice there.

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