High Risk-High Reward Methods for Earning Money
Any kind of investment that offers an incredibly high amount of return in a brief period of time, tends to be quite risky. However, the higher the risk, higher the reward. Despite the probability of back breaking losses, the allure of the high reward always attracts investors to the high-risk high reward methods of earning money. There are definitely no guaranteed methods of earning copious amounts of money in a short period of time but there are some kinds of investments which can help you do that, combined with significant risks obviously. Always remember, for every high risk-high reward investment method that worked, hundreds didn’t. So while the returns might be astronomical, the chances of loss are also very high. Before you invest in any of the investment tools that we have discussed in this article, you must build a solid combination of experience, risk management, and education. Once you have that, treading the path of high risk-high reward investments is going to be a lot safer and easier.
High Risk-High Reward Methods of Earning Money: Get Started With These
Investing in Options
Options are wonderful for investors trying to time the market. When investors buy options, they purchase a stock or commodity equity at a specified price within a future date range. In case the price doesn’t end up as predicted, the investor won’t have to sell/purchase the option security.
The time requirements placed on the sale/purchase of the securities makes it very risky. Timing the market is risky, but it can also be extremely rewarding if you manage to predict correctly.
Investing in Cryptocurrency
Cryptocurrencies have already created a few millionaires. Based on available research, this is a field that can help you make a lot of money but it isn’t easy or without risk. To make money through cryptocurrency, you need to buy some and hope that it increases in value. However, cryptocurrencies aren’t guaranteed to increase in value. In fact, the value of cryptocurrencies fluctuates much more dramatically than regular currencies do.
Initial Public Offerings
Some initial public offerings (IPOs), such as Snapchat’s in mid-2017, attract a lot of attention that can skew valuations and the judgments professionals offer on short-term returns. However, a lot of IPOs from smaller firms tend to be more low profile and allow investors the chance to buy some nice undervalued stocks. This leads to high short and long term returns once the company’s value is corrected. A lot of IPOs fail to generate significant returns (like SNAP) but some do, like Twilio Inc. (TWLO), a cloud communications company that went public in June of 2016, raised $150 million at an IPO offer price of $15 a share. In just its third trading day, it shot up by 90% and by the end of the year, it went up by 101%. The risk in IPO investment comes from the uncertainty associated with the company, and if the management is going to take the necessary steps to take the company forward.
Many startups are fueled by great ideas by people who are not business-minded. Venture capital investors need to do additional research to securely assess the viability of a brand new company. Venture capital investments tend to come with very high minimums, which can prove to be challenging for many investors. Venture capital is a high risk-high reward way to earn money but ensure that you do your due diligence before putting any money in the field.
Foreign Emerging Markets
Countries with fast rising economies are great for investment. Investors can put money in government bonds, stocks or sectors with that country experiencing hyper-growth or ETFs that represent a growing sector of stocks. One of the best examples of that is China between 2010 and 2018. While furious economic growth in the short term is a rare occurrence in the global economy, sometimes, it can prove to be a great source of income for investors. One of the biggest risks associated with this is that the expected growth period might conclude before it was expected. The country’s politics can also change suddenly and bring a drastic change into the country’s economic growth and investment policies.
Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs) give high dividends in exchange for tax breaks. The investment is carried out in commercial or residential real estate.
Due to the underlying interest in real estate ventures, REITs are prone to swings based on developments in an overall economy, levels of interest rates and the current state of the real estate market, which is known to flourish or experience depression. The real estate market fluctuates quite a bit, and results in REITS being quite risky. REITs that offer the highest dividends of 10% to 15% are also at times the riskiest.
High Yield Bonds
High yield bonds have the capacity to offer investors a large chunk of money with the risk of a potential loss of principal. These instruments can be particularly attractive when compared to the current bonds offered by a government in a low-interest-rate environment.
However, investors should remember that high yield bonds that offer 15 to 20% may be junk. The initial consideration that multiple instances of reinvestment will double a principal should be tested against the potential for a total loss of investment dollars. Most high yield bonds don’t fail though, so they can prove to be lucrative.
Online betting is extremely popular across the globe. The number of bookmakers who offer great sports betting odds online and casino games is increasing every day. While a lot of betting sites are only for users to have some fun with a small amount of money, there are a lot of bettors who also take it very seriously and earn enough money to make a comfortable living through the world of online betting. It is definitely one of the high risk-high reward methods of earning money. While difficult, it is possible to generate long term profit in the world of online betting. The world of sports can also be unpredictable at times, so be prepared for some unexpected shocks at times. However, online betting is definitely a great high risk-high reward method of earning money and if you are looking to start, these brief tips will help you set the ball rolling.
- Focus on skill rather than luck – Don’t bet blindly and expect to get rich off a stroke of luck. Betting is essentially guesswork, but the guesses have to be educated, not blind ones.
- Know your sport inside out – Needless to say, unless you know everything about the sport you are betting on, the chances of generating any significant amount of money by betting on it are quite slim. Don’t place bets on sports which you have no idea of. Even if the odds seem lucrative, don’t place money on things you are unaware of.
- Shop around for the best odds – Different betting websites offer different odds for different sporting events. Let’s say you want to place your bet on the Super Bowl, look around different websites to find the best odds and then place your bets. Don’t do it at the first website that you can come across (you can come back to it later if it happens to have the best odds). Sites like betopin.com offer best odds, predictions and Betting 1×2 tips.
- Claim betting offers – Most online bookmakers have amazing betting offers and promotions for users. Make sure you go through them and try to claim the benefits for yourself. It’s free money essentially, no need to leave it on the table
- Maintain your discipline – This is an incredibly important aspect of online betting. It will protect you from making reckless bets or betting too much of your fortune. Even if you have been winning constantly, don’t start placing blind and irresponsible bets, believing that you have some incredible “good luck” phase going on. If you win a lot in a row, you shouldn’t suddenly start upping the stakes. And if you lose a few, don’t start trying to recoup the money by placing silly wagers. Just be patient, trust in your carefully constructed betting strategy and bet accordingly. You will manage to pull through eventually.
So these were some of the best high risk-high reward methods of earning money. These are very lucrative but they also carry a very large amount of risk. So don’t put your hard earned money in these recklessly. Take your time to learn and understand these methods and then go ahead. Taking some risks is good, but don’t ignore safety altogether.