High Risk Investment Vs. Low Risk Investment

Mika

VIP Contributor
On the forums, I participate, a lot of people talk about high risk investment. Some people say cryto currency investment is high risk investment, some say forex is high risky investment, some say investing in share is high risk investment. Basically what they are trying to say is every investment is high risk investment.

I always wonder what exactly high risk investment is. Is it related to how much money you have invested? When you talk about high risk investment, you must also acknowledge that there is also a low risk investment?

If you have invested lot of money, does it make your investment a high risk investment?

In your opinion, what is too risky investment and what is no so risky investment?
 
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Sammyesx

Active member
From my own point of view, high risk investment are investment in which the probability of the investment being a success is low, in such investment you are likely to lose your money, there is no guarantee e.g forex while a low risk investment is one that pose a low risk, the probability of the investment being successful is high e.g real estate
 

Alexandoy

VIP Contributor
A risky investment is one that has a volatile price and the value is not stable. One example is a stock that is not a blue chip that will rise today and the price will be down tomorrow. Crypto coin is another high risk investment while real estate can be considered a low risk but slow in earnings.
 

Setho

VIP Contributor
The definition of high-risk investment or loan is investment is actually on the person that is investing the money. If you are investing any money and believe that the chances of it pulling out is low but then the turnover is going to be high then that is a high-risk investment. But whenever you are investing and you believe that the choice is a high then that is a low-risk investment.
 

Mika

VIP Contributor
What is the difference between high risk investment and low risk investment? I invested $100 on X and $1000 on Y. Do you think X is low risk investment and Y is high risk investment? What are the criteria that define high risk investment and low risk investment? I think answer depends on how a person views investment.
 

Jasmine

VIP Contributor
People like Jeff Bezos, Elon Musks, Richard Branson have invested billions of dollars in Space technology, that's not high risk investment because they can afford to lose that money. But for me investing even $1000 in an online store is high risk investment because I cannot afford to lose that amount.
 

Abigael

Valued Contributor
A high risk investment in my own opinion is a type of investment whose legitimacy is not fully trusted. Such high risk investments usually promise high returns within a short period of time. Many times, they end up stop paying within a short period of time. While the low risk investments are those that are known to be legitimate and gives you profits after a while.
 

Jasmine

VIP Contributor
High risk investment does not mean investing in something "whose legitimacy is not fully trusted." High risk investment means investing in something that is very volatile, crypto currencies or forex market for example. Real estate on the other hand is not high risk investment because market is some what stable.
 

Suba

Moderator
Staff member
In my opinion, high risk investment and low risk investment will differ by measuring:
First, the level of risk, the higher the profit, the higher the level of risk. because the benefits and risks will always be directly proportional. Second, a high risk yield amount will always offer a high return and vice versa. Third, the type of instrument, examples of low-risk investment instruments are bank deposits, mutual funds, government bonds, property, while high-risk instruments are cryptocurrencies, stocks, high yield bonds, venture capital etc. Fourth is the investment period, generally high risk is for short-term investment, and low risk for long-term investment, whether investing in crypto or stocks.
 
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Deleted member 28127

Guest
The investor wants to win big but they do not know the sad reality of high risk investment because just they hear that some people becomes rich in few months they wants to be the same however these people are a minority compared to the big majority that they lose funds rapidly in such opportunity of earning.
 

Mataracy

VIP Contributor
High investment can be describe as an investment that prone to high risk. It can be an investment that the chance of loosing is very high and risky.
Low risk can be describe as an investment that one can see has having low risk and one can really move to invest in it because the chance of loosing is very low
 

Jasmine

VIP Contributor
Even a small business can be high risk. Let say, you burrowed from a bank to set up the business. If you fail, you will have to payback the loan from your own pockets, you might even have to pay the outstanding credits in the market, this will incur more financial obligations.
 

Mika

VIP Contributor
If you end up making a loss and you have a lot of outstanding debts to clear, even a business that you started with $100 can be a high-risk investment. The result will show whether you have invested in high-risk business or low-risk business. Your financial conditions will determine whether your business is high-risk or low-risk.
 

Good luck

Verified member
Every business has its own risk but when you talk about a low risk investment then the business will not yield a big return or profit at the end.A high risk business will bring more profit that is why it is risky to invest on because you may loss your capital and at same time if the market is good,you may gain.
 
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