“If you find yourself in a hole, stop digging.”
There are lots of ways investors get in trouble, and I certainly can’t warn you about all of them. But I want to alert you to a few potholes and sinkholes that lie on the road toward success. If you can recognize some characteristics of bad investments, perhaps somewhere inside your head warning bells will go off when you come upon something you should avoid.
Here are some of those warning signs:
• Everybody’s doing it.
• You can’t get your money back for a long time.
• A salesperson is very eager for you to do this.
• The salesperson tells you he or she has just put his or her mother’s money into it.
• It seems obviously too good to be true.
• You heard about it in an unsolicited ...