Lesser-known investment options (that could make you a fortune)
More traditional types of investing not float your boat? Well, there are others to consider if you are looking to grow your money. In fact, there is a whole raft of lesser-known and more usual types of investment that could make you some serious cash. The most profitable of which you can read about in more detail below.
The first lesser-known investment option we will examine here is that of penny stocks. These differ from the more traditional stocks and bonds because they are usually not held for a long time. In fact, the idea behind winning at this form of investing is fast turnaround. That is, you buy as stocks are on the up. Then sell once they have reached their peak to maximize profit. Conversely, to minimize loss, you sell shares as they start to fall, aiming to get in quick enough that you reduce the amount of profit you can lose.
However, if you think that investing in the regular stock market is complicated, then penny stocks may not be the option for you. This is because there are all sorts of additional rules that you need to adhere to if you don’t want to be penalized, that is.
What that means is you need to be aware of how many sales and purchases you can make in a day or week legally. Otherwise, you could face having your assets frozen. Additionally, there is a significant issue around pumping and dumping of penny stocks that any investor in this area needs to be aware of.
Pumping and dumping is a scam whereby unscrupulous dealers and brokers create a lot of hype around one stock in particular. This forces the value of this stock to go up as everyone behind buying it. Of course, what most people don’t realize is that those that are creating the hullabaloo around the stock in the first place are the ones that hold it. Therefore, they profit as the value and demand goes up. Unfortunately making it hard for those selling on the stocks, once the bubble has burst. Something that often results in major losses.
Of course, this situation isn’t helped by the fact that unlike regular stocks and shares penny ones aren’t floated on the more prominent exchanges. That means the information about the companies that the stock relates to can be hard to come by. Something that can make a bad buying decision seems like a good one and vice versa.
To that end, if you are looking for a lesser-known investment option, proceed with caution when investing in penny stocks. Additionally, do bear in mind that unlike how it is often marketed, it will not be a get rich scheme.
Another lesser-known investment option to consider is binary trading. This is a type of timed investment that works on a binary result. That is if the investment finishes in profit, you get a payout, but if it doesn’t, you get a loss.
Now, this may seem like a more transparent and straightforward way of investing your money. In fact, it is a method that can help limit your losses, as you can only lose the amount you originally put in. You will also automatically be credited with your return if your trade is successful. Something that makes it a reasonably low effort type of investment.
However, there are some complications and risks associated with this type of investment that you need to know about. The first is that while binary trading comes under the banner of investment, it is the most akin to gambling with your money that you can get in this area. This is because you essentially bet an amount on the fact that your investment will win. That is, it will be in profit when the deadline expires.
However, just because there is an element of risk, doesn’t mean that this type of investment cannot prove profitable. In fact, if you make sure that you minimize the risks involved, it can be an excellent option.
Fortunately, there are several ways of safeguarding your money in a binary investment. The first is by looking for binary options brokers that have a high return rate and an excellent customer rating. In fact, using the experience of those in a situation similar to you to guide your choice can be a very smart option here.
Additionally, be sure to check out the payout percentage on each binary investment you make. This is because you won’t necessarily get 100% of what you put in back. Although you will lose this if it’s not successful. In fact, a payout percentage of around 70% is usually considered a good return.
Of course, just like any other type, the more research about the market and the individual investment you can do to inform your decision the better. The problem with this is just like penny stocks the binary trade market is less regulated. In fact, you will find a few binary trading options in the SEC, which means the potential for fraud and scams is high. Something that means you need to do your due diligence and work with a broker that is as safe and secure as possible.
Another less common, but quite popular investment option is property. One that many see as much more sensible than putting their money in intangible assets on the stock market. Not least because of the tax breaks associated with it. Something that means you end up seeing more of the profit that your money makes.
In fact, there is a range of ways that you can invest in this type of asset. The first is to find a property company to invest in. One that builds, or develops properties or even one that finds and purchases land. One way of doing this is to use REITs or real estate investment trust. That is you buy shares in the REIT. Then benefit from payout and the increase of the value of the shares.
Alternatively, you may wish to consider a real estate limited partnership instead. This is where you group together with others and invest in commercial property or land. The advantage of this being that it can not only be very profitable but potential losses are also limited.
Thirdly, you may choose to invest in property more traditionally. That is to buy it at a low price and sell it on for a higher one known as capital appreciation. Of course, you can choose to do this over several years, or as if the fashion right now over the short term. The latter choice is known as flipping. Additionally, there is nothing to stop you combining the second and third options to further maximize your potential for profit.
Finally, and perhaps the most unique investment option of all is to put your money in collectables. Yes, that’s right anything that is coveted by others can be a sound investment, including the more whimsical and lighthearted things like comic books and trainers.
For example, a current issue of a Spiderman comic may set you back from around £10-20s depending on the platform you buy it. While The Amazing Spider-man #1, the first issue, can command a cool £2,700 a copy!
The same goes for the right trainers as well, with limited editions that are no longer being manufactured going for thousands to the right buyer.
Of course, there are a few issues that anyone considering investing in collectables needs to know about. The first is that tracking down hard to find items, at a price that you can afford can be a challenge. While finding a place to store them (so they stay in mint condition) can be difficult to.
Finally, when it comes to collectables, providence is everything. That means even if you have something that seems authentic, getting an expert opinion is usually required to sell it on. This being something that will cost you money and eat into your profit.
Although for those looking for a tangible asset, and one that they are able to get passionate about collections can be a good option.
If you don’t want to put your money in traditional stocks and shares, there are a number of other options to consider. These include penny stocks, binary trading, property, and collectables.
Although just like in traditional stocks and shares, there are risks and pitfalls that you need to make yourself aware of. If you are to maximize the chances of these lesser-known investment options paying off.