There are a lot of investment possibilities out there. While everyone tells you it’s worth it to invest in them or in their products it doesn’t has to as they say.
All investments promise a certain percentage of profit. Even if you receive only half of it is worth it. But will it yield this percentage? The greatest example is when a stock has decreased 100% of it’s value. This will seem as a bargain, yet it may be the opposite of it. If the company bankrupts even the low cost stocks have drained all the money that you put into it.
Succesful investing is anticipating the anticipations of others. – John Maynard Keynes
When some investment looks extremely profitable it often doesn’t manage to live up to the hype. A second posibility is that everyone aims at the same investment, which can influence it in a bad way. The principle of supply and demand also applies on stocks and different investments. When everyone wants it the prices will increase fast, but once everyone has it people start selling some of it. In turn this will reduce the price of your investment.
You may be able to reasonably predict how some investments go, but you can never guess everything correct. This makes it wise to not always follow your gut, sometimes it is better to skip an investment and wait for another one. Just like it is essential to start investing it is important to keep some money on the side for future opportunities. Always look at all the possibilities you have and consider them one by one.