From my point of view investing in ETF's is something very risky, but it is really worth it, I want to mention that currently there are many other investment opportunities in cryptocurrencies that can be little more profitable and above all less risky.
Any short term investment carries a lot of risk of losing money and that is something we have to take into account before investing in any financial asset.
Today I want to talk a little bit about the risks of investing in ETF's and I believe that the most common risks are not having a broad knowledge of the subject and above all not having a diversified investment portfolio.
We need to understand how to invest effectively and for me investments are something really risky from my point of view investments should be long-term and think about investing in the short term, short-term investments such as the FOREX market carry a lot of risk of losing your investment money.
A lot of traders lose money trading short term and that is something you should be aware of. Many people want to trade short term and I think the mental state of the person has a lot to do with this.
Most common risks in ETF investments
The most common risks may be the following.
- Buying at a bad time
- Fear of losing money
- Doing things without tools for trading, such as technical indicators
- Not having a broad knowledge of what you are doing
- Not having a diversified portfolio
ETF's investments are developed to invest in the short term because it is not very profitable to invest in the long term if we have in mind the harsh reality of inflation in the USA, also many people talk about the new world order and this is something that can affect investing in EFT's in the long term because it is simply not profitable, because ETF's have a historical annual return of 10% and sometimes 5% or even some losses can be noticed if you buy at a bad time.
Conclusion
Short-term investments are always high risk and I recommend taking this into account for the simple reason that we can not tolerate the losses and enter into a very serious psychological state, as was the case of Terra Luna investors at the time, many people lost their savings and entered into a very serious depression and even had to attend psychologists and lose time and money on this.
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