There are two prime considerations during the process of making an investment decision and they are the potential risk and the potential return. These two directives make up most of the considerations required to establish, if an investment has quality. Depending on your investment goals an individual can make confident decisions if they allow themselves the time to define these two directives.
Most investors hope for a return of around 20% to 30% but even at these levels it is ambitious because most institutional investors are very prudent with the capital they are in charge of. Fast cycle investments are typically designed more for private investors with discretionary investment capital. This type of capital is typically a segregated 5% of their entire funds with the bulk of it put in blue chips or government cd’s.
This discretionary proportion of a private investors capital can be applied to more aggressive forms of investment with typically much higher returns. Some private investors target fast cycle investments that turn around in under a month or even a week. This type of investment is a perfect vehicle for managing huge annual returns if the risk consideration is thoroughly assessed.
Risk is not as difficult to arrest as is thought. When you hand over your funds to a bank all you receive in return is a small ticket that prints out how much you deposited. In a way this sounds risky to me, but of course it’s not because a bank deposit is considered the safest investment of all. But still, from my perspective and my strategies for risk control, I consider the best possible investment is one where I receive in return an asset of value equal to the money I put into it. This type of investment is the best possible investment because you have in your possession a tangible object that has an intrinsic value equal to the money you spent. A very safe investment.