By: Eastern Eye Staff
The online trader belongs to one of the most vulnerable groups of people. Why are investors at a much higher risk when participating in online trading? First, and foremost, online investing is risky within itself. However, when you add unawareness and cluelessness to the picture, you have a potentially major financial disaster on your hands. It is unfortunate when traders approach an online investment opportunity obliviously. What they do not know is scam artists prey on vulnerable investors by offering enticing investment opportunities. One example is an online investment program, with no risks. As you and everyone else should know is all online trading programs come with some risks, some more than others.
What is every online investor’s goal? A substantial return in a short period of time. Unfortunately, this is rarely how online investments work. In fact, most successful investors have a history of buying and holding. When you think about it, this investment strategy makes sense. Unless you are lucky enough to buy very low and sell significantly higher, the return will be nothing to brag about. This is why experts recommend buying and holding. In some cases, successful investors have reported a long-term holding period of up to one year.
A major red flag to be on the lookout for is the promise of a substantial yield of up to 100 percent. The kicker is the guaranteed return time of about 24 hours in many cases.
HYIP operators know how to ensure online investors take a bite. How is this possible? It is possible through an aggressive marketing tactic that online traders cannot ignore. One example is the promise of an investment portfolio that delivers constant long-term growth, with great returns and minimal risks.
When you begin researching possible investments, you may be contacted by a salesperson. Alternatively, you may reach out to the fund’s team to learn more about the possible investment. Doing so is wise because it can help you learn more about the pros and cons before investing. However, you should pay close attention to the salesperson and his or her behavior. Are they being too pushy? Are they unwilling to accept your rejection? You’ll also want to get a feel for the person.
Make sure they’re knowledgeable and responsive. If they don’t respond to your questions promptly and provide thorough answers, they might be hiding something. Talking to a representative will make it easier to minimize your losses.
Before choosing an investment, you should read its materials carefully. In some cases, you’ll find that the investment firm or fund offers certain guarantees and promises. Usually, it is impossible to guarantee anything. Markets change rapidly. Therefore, all investments will face some type of volatility. If they’re guaranteeing a certain return on your investment, you should be cautious. It is impossible to know whether the investment will meet those expectations. All investments pose several risks. Therefore, you should decide based solely on the investment’s guarantees.