The old adage “without risk, there is no reward” greatly applies to the life of a trader, regardless of which market a trader chooses to trade in. Still, there are investments that are considered safer because of their likelihood to produce steady, albeit slower, returns. Meanwhile, expectations for other investments—like trading futures—are seen as riskier.
Take a peek at a quick snapshot of both sides:
- Fixed Annuities
- Equity Index Annuities
- Permanent Life Insurance – Cash Value
- Savings Accounts
- Money Markets
- Government Savings Bonds
Higher Risk Investments
- Mutual Funds or Exchange Traded Funds (ETF’s)
- Variable Annuities
- Stocks, Corporate Bonds or Municipal Bonds
- Physical Assets (Gold, Silver, etc.)
- Real Estate
So, why trade futures?
Simply put, when you choose to make safer traditional investments, the returns you might expect typically take a much longer time to receive. If you’re willing to take some risk, however, you have a much greater chance of achieving your investment goals more quickly. The best advice when evaluating what you want to trade, or when debating between slow and steady vs. fast and finicky is this: education is vital! It simply can’t be said enough—the best way to prepare and reach consistency in your trading is through trading education.