Posted on 05 July 2012.
An investor’s eyes often light up when they hear about short term investing plans that never fail; this is a part of the human condition. People feel that if they can get a guarantee that it is worth investing in. After all, they are going to be getting double or triple that money back in a short time right? Wrong. The fact is that the old phrase will always hold true, “If it sounds too good to be true, then it probably is.” Avoid being swindled by taking a moment to completely consider what the offer is and look for ways that could lead to get ripped off.
Conmen are smart people, but most of their tricks require speed and distraction to be successful. A savvy investor will always take time to look at a deal and often back out if there is an unnatural and unnecessary amount of pressure being placed on them. Some stockbrokers can be a bit dishonest and push products by providing faulty advice. Dishonest firms will often try to unload bad investments onto naïve investors by talking about the stock as gaining momentum, providing misleading trend analysis, and similar techniques.
The best thing for any investor is to work with a quality firm; one that has been in business for many years and has a track record of providing quality advice. Pressure is usually the best technique when it comes to a scam. If the con artist can get the mark to believe that he or she has to invest right now in order to make colossal profits, then he or she can often get the investor to buy any stock. Short term investing often requires quick action, in order to buy before the stock begins to make money, but always be on the lookout for false promises and blatant lies.
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