Three investment "instruments" to avoid

1. Forex Trading.
2. Sport betting.
3. Crypto-currencies.

1. FOREX

1. Let's say I have a model for gaining 5% or more return per month. And this model is a zero sum game (like Forex trading). Why in the world would I teach anyone else my model? That's the question you need to ask before signing up for a Forex trading class. 

Why is this person selling a book/teaching course if they can make 60% return per annum? It's because they don't make 60% a year. Nobody does. Someone said 90% of Forex traders make a loss 90% of the time. Don't be deceived. Most traders lose money in the long run. 

Here's a deep dive into why Forex trading as a path to financial security is a mirage.

2. CRYPTO

Money is:
1. A means of exchange.
2. A store of value.

Crypto currencies fail both tests.
1. I can't exchange it for most things.
2. It changes value arbitrarily.

Maybe it will become valuable in the future; maybe it won't. It's NOT an investment. It's speculation.

I could write a thesis on the flaws of cryptocurrency "investing" but it won't be as good as this absolute takedown of the madness by Mr. Money Moustache.

Read it. Why Bitcoin is Stupid
 

Read also : Why I started speaking out against sport betting.

3. Sport betting

The ONLY people who get rich from gambling are casino owners. The ONLY people who get rich from sport betting are platform owners. 

If you live in Africa or the Caribbeans, walk around your neighborhood. It's filled with sport betting addicts in tattered cloths and betting platform owners in BMWs.

Sport betting steals money from the most vulnerable to top up the pockets of millionaires. Please. Don't even bet for fun.

It's a cancer that is destroying communities and neighborhoods. Why i started speaking against sport betting

Bottom line.

Avoid:

1. Forex Trading.
2. Sport betting.
3. Crypto-currencies.

They are not good models for investing for your future.

We will talk about investments to consider instead on Thursday.

Author

Read also : 3 Bad trading psychology you should stay away from.