It’s very clear to see that certain investment strategies are becoming more and more talked about in recent months. From the GME stock situation that seemed to expose certain hedge funds shorting GameStop stock, to cryptocurrency taking on a life of its own with massive rises in value and proponents like Elon Musk pushing forward certain coins with passion, it’s hard not to think that we’re ‘missing out on the action’ if we’re not carefully chasing these opportunities.
Of course, investments are a wise use of your money, provided they are calculated and costed, and moreover, that you can AFFORD to invest in this money. Investments, while much more reliable, long term and potentially rewarding than gambling, do have the spirit of gambling within in that you can never be 100% guaranteed that the money is coming back to you.
For this reason, it’s important to use a few pointers to keep you disciplined before you get started. Let’s try to achieve this in the following ways:
Don’t Fall into Crypto Without Thinking
It’s true that cryptocurrencies offer possibilities and opportunities and are perhaps a great investment strategy for some people, but don’t dive in without thinking. Instead of being sold on the latest coin because a person of influence tells you to, or instead of simply trying to ‘get while you can’ by buying a dip, look at trends, understand the blockchain, and take time keeping up with the news of legislation surrounding Bitcoin and what that means. As the best financial risk managers such as Glen Clemans with CGC Financial can tell you, it’s always best to be as prepared as possible before accepting risk.
Avoid Get Rich Quick Schemes
Of course, it can seem as though get rich quick schemes are more than possible when it comes to setting up an airdropping business, or running a blog and using influencer clout to build your brand, or using the aforementioned crypto, or in chasing online routes of revenue, but it’s important to make sure that you avoid deals that look too good to be true, or thinking that you’re owed returns just because you focus on an investment before anyone else.
Even those who invest in resources like timber (which has risen in value recently), must do a cost-benefit analysis, and understand the risks and value involved before going forward. It’s easy to say this on the surface, but with our on-demand culture, it can be hard to resist the hype. Make sure you keep that in the back of your mind.
Ignore the Hucksters
Just as many trends are being chased and investments are being democratized, so-called gurus who hope to give you a motivational speech aimed at inspiring you to subscribe to their services, use their insight, or follow their strategy can often be a waste of time. It’s quite clear to say that, but it’s important to affirm this lesson in the face of Instagram entrepreneurial influencers, and even figureheads that weigh in with their opinion as a firm of earning revenue on every business talk show. This isn’t to say good advice doesn’t matter, but make sure you consider credentials and always take a guide with a pinch of salt.
With this advice, we hope you can invest money without being taken for a ride.