Why Most Investors Lose

INVESTING TO A LARGE EXTENT IS RISK MANAGEMENT Recently a man 51, who had conned investors out of tens of millions of dollars was sent to prison for proably the rest of his life. One of the investors he conned was an ederly man who lost his entire life savings of $150,000. The elderly man told the con man that all hell would break lose if he was being cheated. Do you really think the con man was concerned about the threats?
Instead of threatening the con man the older man should have done a little research. The con man had prior convictions that could have been found on the internet. The con man was recmonded to him by one of his church members who told him he was a good Christen. The return on the investment was a guarteed 9%. So even with out doing any research he should have suspected something was wrong. There is no such thing as a gurannteed investment. When the word guranteed is used to describe an investment its almost always synomous with fraud. The biggest mistake the old man made wasnt investing in the con man's scheme but putting all his money,his lifesavings into the scheme. The old man got greedy and that is what tripped him up. IF he had invested 5 or ten thousand dollars and the investment went bad it wouldnt have been a big deal. Most investments are going to fail. So investor must spread the risk among other types of investments. One of them could be the next Microsoft or the next Homestake Goldmine. That is how u make money without losing your shirt.