Easy money everyone wants. But there is no free lunch. The number of financial scams in the square has been increasing in recent years. The estimate is that about 10% of Americans have already fallen into some type of coup.
In general, the victims want something that does not exist: exorbitant profits in a short time.
Let’s discuss tips for avoiding financial scams, and to invest money safely. See below:
1) Beware of greed
Greed is the main factor that leads the investor to fall into scams. Don’t expect to get rich suddenly – wealth builds up little by little. Especially now, that interest rates in the country are at historic lows, it is not possible to expect very high returns in a short time.
2) Overconfidence is risk
People with more self-confidence are more susceptible to scams. Those who are more suspicious, more cautious and more cautious, have less chance because they will take precautions. Do not believe in “with me it will not happen”.
3) Be wary of promises of very high, easy and fast earnings
Be wary of big promises – they are the strongest indication that the investment offer could be a scam. If it was that good, he would keep it for him and not offer it to you.
4) Don’t rush
Watch out for slogans as a unique opportunity, exclusive offer and last chance. They give investors the feeling that they are missing out on a great opportunity, and can be misleading. Stay tuned and research before making your investment decision.
5) Pyramid is not an investment!
The so-called pyramids are models in which the new participants go on paying the older ones, and that is why it is always necessary to have more people participating so that it does not fall apart. It is a model that is not sustained for a long time, since the money is not being effectively invested.
These types of forex trading scams are very quick: when they go public, it is too late. Be wary if the strategy asks to invite friends and family. It is possible that it is a pyramid, and not a legitimate investment.
6) Study before
The first investment is to invest in knowing what you are doing. Do some research and invest time. It is better than investing time to get money back later.
7) Look for information on the official channels
Institutions working in the financial market need to be authorized to do so. Look for information on official channels. The stock exchange also offers useful information.