Avoid These Risky Investment Ideas

To quote Merriam-Webster, the definition of investing is “to commit money in order to earn a financial return”.

To quote it again, the definition of speculating is “to form a theory or conjecture about a subject without firm evidence”.

While a lot of us feel confident in our investing skills, a lot of people’s actions don’t always fall into investing, but rather speculating. In the world of money, it’s actually not that surprising to see people speculating more than investing. But why is that? Why do we think we’re investing in something when we’re actually speculating?

Any skilled investor will know that the best kind of investments you want to look out for are transparent, reasonably liquid (i.e. you can easily turn the item into cash), have intrinsic value to it, and it has a track record.

But even when you’re looking at that criteria, it’s not all that clear what is a good investment or not. Some “hot” investments can look great on the surface, but looking deeper, they’re all gambles. On top of that, you’ve also got some investments turning out to be more like bets if you haven’t done enough research.

Without a doubt though, the investment ideas we share below will not do you good in the long term and here is why.