ZedNeon: Where, as an Individual Trader, can you potentially realize the HIGHEST return?
In principle, would that be Stocks, Options, Futures, Forex, Hedge Funds or what? I’m not necessarily concerned about the inherent RISKS involved, but the highest potential in terms of return on investment (i.e. money at risk). Please justify your answer.
Answers and Views:
Answer by arun v
Individul trader can get best return in Futures and options..Follow simple and tested techniques instead going for complicated , difficult techniques..Just one or two trades per month will do.But good entry and exit..
Hi – I’m a trader…Highest Return?
Stocks won’t because they require you to put forward the full amount of capital. Hedge Funds – you have little control over what they invest in – and i doubt they can match any professional trader’s returns!
You’re left with futures/forex and options. I don’t have experience with futures so I can’t comment but forex dealers give you a leverage of 100:1. You only need to put in 1% of capital in your trading. What does that mean?? well percentage wise your returns will be phenonemal. You can achieve the same leveraged affect with options as well as this instrument called CFDs.
Answer by sinclairagIf you’re looking for out of the park returns, futures and options are the only way. You need to fully master the underlying securities before you can successfully trade derivatives. With opportunity for high returns comes more risk, you must have a plan to manage this risk or you will quickly go broke.
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