A former Fortune 100 executive explains investment warning flags to avoid.
PETER KOMOLAFE, a former Fortune 100 executive, financial advisor, and the founder of Conversation of Money, has outlined some investment mistakes and frauds to avoid.
There are a plethora of ways for scammers to appear quite legitimate in the digital age, and online investment scams cost the UK £50 million in 2018.
While investing may appear to a novice to be a minefield, there are some red flags and hazards to avoid at all costs.
The first is, as Mr. Komolafe mentioned, moving too quickly through the research steps before making an investment.
During an exclusive interview with This website, he remarked, “There is so much material indicating you should be doing this now, this is the opportunity right now.”
“It feels like I’m going to miss out if I don’t do it now.”
“The stock market will always be there, and investment opportunities will always be there.”
Understanding the dangers connected with certain investments is a common error that many people fall into unintentionally.
“When it comes to money, we often consider what we stand to gain rather than what we stand to lose.
“Because there isn’t enough discussion on danger, social media emphasizes the benefits.
“Most people don’t want to know you can lose money until you lose money and realize, ‘I wish someone had told me this,'” says the author.
Mr Komolafe also issued a general cautionary statement about social media:
“Think about who you follow on social media.”
Many first-time investors are influenced by social media, and it’s important to remember the reality behind what they’re seeing and look at the big picture.
He warned that investors who are looking for big, quick returns will be led down the incorrect route in terms of research and, eventually, what social media will promote to them.
“That thinking effectively puts you in front of content or trading schemes that are solely there to tell you what you want to hear and support the view that you already have,” Mr. Komolafe explained.
When an investment opportunity presents itself, Mr Komolafe also cautioned that there are important factors that might inform an investor if it is coming from a legitimate source or a scam artist.
He began, “If they’re a credible organization, you should be able to ask them questions and expect pretty decent responses.”
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