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Red Flags All Investors Should Look Out For

There are a lot of investment opportunities nowadays which is a good thing but the bad side is that people use the fact that people trust in these investment scams to make their own gain. Just as much as there are investment opportunities, there are also now a lot of scams posed as investments.
Some telltale red flags you should keep an eye out for include:

  • If it looks unbelievable, it  probably is. Investments that promise huge returns in a short time are probably a scam. You need detailed information about any business you want to put your money in so as not to fall victim to a scam.
  • Investment offers from people you just met or barely know are to be avoided. You don’t know them and unlike you, the investor they have nothing to loose. 
  • If you feel pressured to invest its probably a bad call. Legit investments should not make you feel like you’ll be the only one gaining, because you’re not. The business owners always have a cut and if their cut is not well explained you should not go into it.
  • If you do not see any financial statements and documents that better explain the nature of the business. There should be a paper trail because if there isn’t, it is probably a scam. 

It should be noted that money doubling schemes are not investments but scams. No investment pays as quickly as most of these doubling schemes claim to pay.
Lastly follow your gut. Your gut is mostly right about any decision you are about to take.

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