5. When the deal is too good, think twice.

This is paramount. It ranks high among the rules of investing.

When someone presents something too good to be true, there is a 99.9% probability that it is not true. Your instinct will tell you when something is too good to be true.

There was a fraudulent investment vehicle in our country a few years ago called DECI. They promised to give people 3 times the money they invest within a few weeks.

Many people invested everything they had to invest. They sold their land, cars, and houses to invest. For the first few months, people got 3 times what they invested.

The word spread and almost everyone in the region invested. After a few months, people walked to DECI offices and they were closed. This is where they realized that they had been conned.

Billions were lost through that fraudulent vehicle and that money has never been recovered. Many people killed themselves, others went bankrupt and many have never recovered from that financial setback to this day.

Always run away from investments that promise so much. They are mostly false. In any case they are true, they will fail because they are not economically sustainable.

6. Always do your due diligence

When someone presents an investment idea, do not just take it. You have to do your research to understand how it works.

This research will help you understand what was never said during the presentation. As people present ideas, they only give the sweet part of it and leave out many underlying negative things.

Due diligence will help you unearth these negative things that were never discussed. You will have an opportunity to question and get clarity.

7. Give your investment enough time to generate enough returns

Time has an amazing impact on investments. This is the power of compounding.

Many great investors take a long position in their investment. This means that they do not buy today to sell tomorrow. They allow the investment to make them millions over time.

You can get more on this on how to get a free asset to understand more on how to treat assets that you get freely over time.

Conclusion

You cannot afford not to invest but you can also not afford to invest blindly.

These 7 rules of investing will prepare you for the ever-competitive investment world. The world is full of many fraudsters and many who promise heaven but deliver hell.

You have to be on the lookout to avoid losing everything you have worked so hard for in one day.