Investment is like gambling, you may win, you may lose, but, you have to know that not all the time your investment loses is because of the market’s movement but there as there are some instances when loses are because of someone’s negligence. GPB Capital for instance faced a case because of fraud. Good news to investors as they were able to find a way to win their case.
As they always say, prevention is better than cure, hence, it is best if instead of fighting for the money you invested, you avoid investing to possible fraud investments.
So, how can you avoid this from happening? Here are a few things that you have to keep in mind:
- Do not believe in too good to be true promises
If they claim that you are assured of returns, then best to step back and run away. There is no assurance in any form of investment, so, if they commit you with hundreds to thousands of returns, best not to believe them and not invest on them even a few centavos.
Too many exaggerated promises are obviously a way to persuade you to invest. Be very careful when listening to promises, as there are some instances when even how hard you try, you will get persuaded because of promises that are too sweet to the ear.
- Keep yourself away from pressure
If they are pushing you very hard to invest very fast, then there is something wrong with it. They need to give their investors enough time to think especially that there is money involved when they invest.
Pressuring you to do something is a huge no. To whatever it is related to money, you have to take everything very carefully or else, you might end up getting involved to fraud activities.
If they are too pushy, thinking about their real intention is a must.
- Avoid unsolicited offers
If you received a call from someone out of the blue, thinking from where they got your number is a must. Unsolicited offers from strangers are something you have to avoid, but not completely of course.
You have to check their offer, and see how genuine it is. You never know, that anonymous caller can give you the investment you have been longing to consider.
- Talk to a pro
Talking to a pro is also something you can consider. A pro does not need to be a real professional but someone who has been in the investment industry for quite a long time. Talking to an investment management pro is highly recommended especially if it is your first time investing. They should be able to help you in determining which stocks to invest and which you have to avoid.
But of course, you only have to get help from someone who has a sincere desire to help you get more on your investment. There are some who are there not to help but actually to earn from your innocence.
- Know who you are talking to
To avoid being victimized by fraudulent activities, make sure that you know who you are talking to. Ask their name, the company they are working with, and other information that can help you determine the integrity of the person you are currently talking to.
Do not believe on anyone especially if you just talked to them the first time. Give yourself enough time knowing a person before you entrust them your hard-earned money.
As much as you want things to be fast and easy, there is definitely no shortcut when investing, you need to spend time and effort to ensure that fraudulent activities will never come your way.