5 risky games investors play

Investors often make big bets in hopes of getting outsize rewards. These strategies require confidence and cash, but the payoff can be enormous.

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VIDEO ON MSN MONEY

14Comments
Nov 10, 2012 12:40PM
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Well the welfare mentality on wall street thinking that the tax payer will bailout them again is stupid. Short sells should not be allowed ! Wall street should not have margin buys at all ! They should be cash and carry only.. The Glass Steagal act should be put back in place ! The too big to fail mantra on banks should be broken up ! The FEDs should raise int rates to 1.5% at the fed window on wall street! Stop all teh qe1, qe2 , qe3 BS NOW.. If wall street falls let the free market system rule the strong lives the weak die.. Thats the way wall street should be today .THATS CAPITALISM ..The Bush tax cuts expiring will only bring the rates to where they were ! They were to create jobs from the rich right? WELL a decade latter and guess what no jobs by the so called job creators ! If tax cuts work ? We would have unemployment at 2% TODAY.. THE FISCAL CLIFF NEEDS TO COME AND CONGRESS SHOULD not raise THE DEBT LIMIT! THAT WILL PUT THE BREAKS ON THE FEDS RUNNING THE PRINTING PRESSES FOR WALL STREETS FREE MONEY! And Congress out of control spending .And stop the devaluation of the US$ . Its time for wall street AND CONGRESS to live within its means like the rest of America. 16 trillion was good enough for 2012 ! It truly good enough for 2013.. Thats whay they call it a debt LIMIT people ! Do not listen to the pundits on the news and wall street pukes ! They just hate the thought of using their money!!!! And living in a truly free market ! What we have today on wall street is socialized wall street looking for a government bailout at every turn! Thats and this the way they have ran is NOT CAPITALISM folks its pure socialism on wall street! READ YOUR CONSTITUTION PEOPLE ! CONGRESS IS THE ONLY POWER TO TAX AND SPEND . ITS IN THE US CONSTITUTION READ IT YOU IDIOTS... TAKE A CIVICS CLASS AND LEARN AMERICA... STOP BELIEVING THE B.S.FROM FOX NEWS AND ALL THE OTHER IDIOTS OUT THERE..
Nov 11, 2012 3:01AM
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Only 5? Stock investing involves many risks. In order to minimize them, an investor needs the patience to research and research again.

A casual look at a stock before buying is a sure trip to the poorhouse for anyone with limited funds; that's a no-brainer.

Nov 19, 2012 10:03AM
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The article does have a flaw that is the focus on the stock market a THE investment.  Sometime back a man wrote for advice.  He wanted to "retire", but not so much, and wanted to keep going and wanted more income..  The advisor spoke of mutual funds and baskets of stocks.  The man was a contractor, and had the skill and tools to remodel real estate.  Not one word of "buying the worst house in the neighborhood" for a rental.  I was not a carpenter, but I started doing this in school, now retired at 79.  Sometimes a lot of "sweat equity" went into the places, but the has unsold has paid back every cent, is still valued at more than I paid, and is still returning money.  Wish I had done more.

Nov 19, 2012 10:13AM
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Short selling should be illegal! If you can't afford it upfront, don't buy it. Not to mention the ethics questions involved with betting against an investment. The money has to come from somewhere, it happens to come from investors who are betting FOR the investment.
Nov 19, 2012 11:13AM
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The day trading situation presented in the article will not work in terms of the time frame given.   The reason it will not work is that you can not trade that total ten thousand dollars every trading day available.   If you buy one day and sell the same day, you can buy again, but then you must wait 3 days before you can sell again.   A broker can't stop you from selling before the 3 days is up, but they can restrict your account so that you will not be able to do that again.

 

Personally, I've never understood why one must wait 3 days for anything to "settle".  We are in an age of instant electronic transfers.   If you buy, they don't wait 3 days before getting the money, so I've never understood why it is that I must wait 3 days before I can trade again.   I can see why that might have been back in the day before electronic trading, but I see no valid reason for it today.

Nov 19, 2012 10:54AM
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Another risk with commodity trading is you might have to take ownership of the real stuff.  That incurs costs of delivery and storage, as well as delivery again when you finally do sell.  I've had friends who bought commodities, saw the price fall to where they didn't want to sell (wanted to wait for prices to rise again), only to run out of time and get killed on delivery and storage.

 

The "going off on your own" is probably the least risky of all of these, as long as you make a good plan and stay within your competencies.  It can include upgrading your education, which will usually pay off as long as you don't incur a mountain of debt doing it.

 

Nov 9, 2012 2:30PM
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When the Bush tax cuts expire on Dec31st you will see just what you voted for.  Each household with 2 children will get a $4,00.00 tax increase, $4,700.00 for 3 kids, plust 2% on their paychecks.  This is all before "Obamacare" even dips into your pocket.  That Fiscal Cliff everyone is talking about, we will fall off that cliff the 2nd of January 2013.  Economists are expecting the Stock Market to collapse & rocket ship us into another recession.  These tax increases are just awesome for this nations middle class!  OH WAIT!  Thats right, we are only going after the rich.  Thats the BS & lies that you fell for.  Good luck!
Nov 9, 2012 10:52PM
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BRIAN BOLTON:The truth is there will be a compromise.The Repubs will have to cave in on some issues.Don`t believe the far right lies about the class getting screwed over.Idiots like Rush,

Hannity and the like have been throwing that mud on the walls hoping those lies will stick.By about Dec.18th there will be a compromise so they won`t miss their vacation.It makes me sick that the far right

tries to scare people with their lies.

Nov 9, 2012 1:46PM
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The Market is up today, where are all the Romney supporters with their 'end of America' nonsense???
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