Many people refuse to invest (especially in the stock market) because of the ‘risk’ it carries. Warren Buffett, the world-renowned Investor, billionaire, and philanthropist said “Risk comes from not knowing what you’re doing.”
If you invest into things that you don’t understand, then you are just saying that by some luck you will profit from the stock market. That’s not the right way to invest – you might as well be gambling; and I do not advice that.
When I was in primary school, I used to get injured a lot while playing sports so I found it easier to just stay out of the way of any contact sport for fear of injuries (and read novels instead). I have learned a lot since those days.
“Courage isn’t absence of fear, it is the awareness that something else is important” – Stephen R. Covey
The above is an excerpt from my book “Financial Legacy: 8 Lessons My Father Taught Me About Money”. My reason for bringing this to your attention is because of a call I got from a friend last week. This lady clicked on an advert (which promised quick gains from trading on the Stock Market) of Facebook.
After she completed their form and paid them an initial £200, these scammers went ahead and withdrew another £200 from her account within one hour without her authorisation. This was when she called me. So I advised her to contact the bank and put a stop to the payments but the bank could only refund the second payment because she had authorised the first one. She also had to cancel the debit card she used in paying them her initial deposit. Since then over 5 different people have called her from this company, PWRTrade; each calling himself her account manager and requesting for personal details – so she could continue trading. A quick online search will tell more about this company.
When I asked her why the fell for these people’s trick, she said the offer looked too good to pass up … and that she wanted to make some quick money to surprise her husband with. Well, he was surprised alright but not in the way she wanted!
When an offer seems too good to be true, that may just be it – it is not true. Investigate before you invest.