Monday, May 31, 2010

How to Tell Which Investments to Avoid

We all know we should be investing, but with so many products on the market, it can be tricky to figure out in what. Your first rule of thumb is that anything that is too complicated to understand should be avoided. Often, these types of investment are deliberately complex, as a means for the broker and product creator to confuse potential clients. That never ends well for the investor! Investing in stocks carries the same rule, although for different reasons – if you want to invest in stocks, you need to make the effort to learn how the markets work, how stocks work, and everything else. If you don't have the time, or just are not interested, you should avoid this type of investment.

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