Investment risks are inevitable when doing business. Normally, when giving money to someone or some organization to carry out an “investment project,” if you are a wise and sensitive person, you will be alert and suspicious when you see them having the following symptoms.
How to recognize investment risks
Firstly, everything looks inconsistent, undisciplined. The project does not see any uniformity between parts/structures; words/papers are not carefully stored; customers do not receive well-prepared, elaborate, and detailed status update notices; you want to cash out but not (easily).
Secondly, they give numbers that are so amazing, no investment risks, amazingly awesome that it’s unbelievable.
Thirdly, they are always looking to activate, hit on your desire to make a lot of money and quickly.
Fourthly, they always invite, advertise loudly with everyone, anytime, any time about their project with incredible invitations so that as many people join as possible.
… But, fifthly, only a few people know who they are.
If you do have doubts and stay away from such investment project owners, congratulations! You are and sure will be exit many pitfalls with a lot of investment risks, the kind of “getting rich is not difficult” that many people fall into.
But if you meet someone who is completely opposite?
If the owner of the project has the manifestations, there is an opposite approach to the above five things, then you will trust (completely) in him, right?
But if you believe in such a person, my condolences! You have so much “potential” to be the customer of another kind of Bernie Madoff!
At the best said on, Bernie Madoff did the opposite excellently, side by side yet. He even put out a long list of investment risks with monthly vulnerabilities that he said the client owned through his fund. All is that if you are hesitant and want to cross-check by adding up these detailed holes, you will find that it matches the general flaw that Madoff Company reports to the investor periodically! So if you are an amateur, do you have any doubts about Madoff’s reports being “fabricated”? Sure you don’t.
On the second point, Bernie Madoff knew well that people will immediately be skeptical of “too good to be true” things. Overall, Madoff’s investment results were just too great. But the year-by-year results did not look great. He simply added a compound interest of around 10% / year, year after year, into your investment, but that was enough for your investment to become “huge” over the years you “invested” with Madoff’s fund. He never claimed to be more profitable than that, even when the market was up to 20%. Only after years of “investing” did Madoff’s deception unfold; Madoff’s consistency eventually turned into statistically unbelievable, but that consistency itself was perfectly plausible if viewed year by year.
On the third point, Bernie Madoff behaved so exemplarily that most of his victims were not the people who want to get rich quickly. On the contrary, they often see investing with Madoff as a prudent and reliable way to ensure their savings grow evenly.
On the fourth point, Bernie Madoff cleverly created a personal impression of the victim. When his friend offered to contribute capital to his hedge fund, Madoff immediately said that the fund is enough and he can do nothing. But then he relented and said that maybe there is a way to help you. Under such circumstances, people felt blessed to participate and thought that what they buy is very special. Of course, the funds that people joined were not supervised by law and lack transparency. This is also how many hedge funds and private investment funds apply.
On the fifth spot, Bernie Madoff ran a brokerage and had climbed to the position of President of the Nasdaq exchange.
Thus, Bernie Madoff was able to deceive many people for many years (and probably will continue if the financial crisis of 2008 does not break out) because he understands how to let things go peacefully without aroused the warning signal of investment risks. The rational people would be wary of overly beautiful promises, so Madoff steadily moderated the results of his fund, creating a feeling that the fund is very careful and safe.
Reasonable people will appreciate their opportunities and Madoff is the one who gives you that opportunity, by “dedicated” to you the opportunity to invest in his careful business fund. Even though his business was a scam, he made it look like he was doing business seriously, really, with classy customer service. To ordinary people and wise people, everything looked reasonable, nothing suspicious.
Knowing and identifying the aforementioned tricks will help you get out of the investment risks with beautiful multilevel investment projects that are subtly disguised, in addition to the usual multi-level scams that are too obvious in everyday life.