What is the least risky and potentially most predictable financial market to invest or day trade in and why?
by on Tuesday, July 30th, 2013 | 4 Comments
Question by splatterchew: What is the least risky and potentially most predictable financial market to invest or day trade in and why?
I’m looking at the Forex, Stock, Options, Commodity markets and anything else I can think of. Exactly what are the pros and cons of each and where is a knowledgeable trader most likely to make gains?
Best answer:
Answer by yaz20100
“land” and that DOESN’T include buildings. just plain land. this is the only thing that have a price rising and never falls.
What do you think? Answer below!
risk is directly proportional to the individuals knowledge of that market. there is always risk, but you don’t have to be risky.
First off, you should know that “predicable” and “day trade” should never be used in the same sentence. If there was a predictable way to profit by day trading, a lot more people would be doing it.
That being said, if your looking to investing something that is the “least risky” and “most predictable” you should look at a low cost fund that tracks a broad market index . Check out VFINX, Vanguards mutual fund that tracks the S&P 500. If you looking for pure predictability, try a bond fund.
The others you mention Forex, Options and Commodities, are the MOST risky and LEAST predictable. And while they can be quite profitable for a professional trader, they are not suitable for the average/rookie investor.
If you have the discipline to buy and hold dividend-paying stocks over the long term, you’ll do better than most. If you have the time and ability to study and manage real estate rentals of single-family homes, you will do better than stocks, but it takes more time and much more study. The other things you mention are far more risky and far fewer people succeed at them. What makes you think you’re going to be the knowledgeable trader?
Stocks – American stocks. Check out these videos I’ve been watching lately:
http://www.daytradingfreedom.com/videos
I’ve been getting into this trading, and like you, am looking for something predictable and low risk. These videos have convinced me that stocks are the way to go.
Good luck,
SJ