When you’re keen on investing, there are moments when you find yourself bombarded with investment opportunities. Question is – do you bite for each and every chance that you encounter? Or do you rather sit back, and ask yourself if the opportunity is worth putting money on the table?
A good investor learns to look at each and every opportunity that comes along his way . When that happens, what questions do you ask when you scrutinize possible winning investments that come to your doorstep?
What are the Risks Involved?
There’s no investment without risks. There is always the risk factor involved when you put your money into something that has the potential to multiply your investment by a factor. You should take these risks into account, and decide whether the risks are worth the possible gains in the future.
Remember also that you should only invest money in amounts that you are willing to lose, so ask yourself, “Is the seed money required here too much for my finances or is it something I can recoup easily through other means?”
How Does the Opportunity Grow Itself?
This is self explanatory if you’re engaged in stock investments. Stocks grow through a variety of factors: changes in management, a possible project that has the potential to generate a considerable amount of revenue (and stock dividends) for the company, and any other news that could positively affect the issuer.
If you’re going to invest in a stock in the short-term, keep your eyes out for news. You’ll be amazed at how speculative investors can influence the movement of the stock price, by selling or buying at the right moment. By spending time to follow news regarding a specific stock, you can actually see what events drive the price of a stock upward or downward.
In other forms of investment, however, you’ll have to look at the scheme, particularly at how the company plans to use its investors’ money to grow its own revenue and thus increase the value of your investment. This is a very important step to take, especially when trying to protect yourself from Ponzi schemes.
Does It have Customer Support?
People, especially investors, sometimes take customer service or support for granted. This is actually very important, as you might come across problems or issues that you might not have noticed when you first weighed an investment opportunity. When that happens, does the company or broker have somebody to explain things to you or not?
The presence of a customer support system is a sign to look out for. If a company doesn’t have a customer service team to handle your inquiries, chances are, it’s a shady entity that you should avoid at all costs. If they are so ready to take your money but are not able to address your future concerns, how can such an investment be trustworthy in the long term?
A successful investor is able to look at stuff and weigh their risks and advantages accordingly. So, learn to take a deep breath, sit back and be scrutinizing with the opportunities that come along your way.
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