The effect of not doing your research before investing

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Before you invest in a company, you need to know how it is going to make money. You also need to know about the team and the experience of the CEO. Most importantly you should find out if it has a sustainable business model.
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This is called, 'DYOR', (doing your own research) before investing is so important. It will give you better insight into the long-term potential of that investment, which means that over time your money will grow more and stay safer.

Most people find it difficult to do research

Most people find it difficult to do research and that is why so many of them make the mistake of not doing their research before investing.

Many market trends will come up in the next few months or years. People will feel like they need to invest in trends that are already established because they're worried about missing out on other opportunities. In reality, however, these trends are often overpriced and there might be another opportunity coming up which is just as good as the old one.

They don't seem to understand that when they invest in a company that is not trustworthy or if the company has outdated policies and standards, they can lose what they invested, or worse - their money could be at risk.

For example, if they invest in a company with shady business practices, that company can go bankrupt and their investment is at risk of being lost. If they invest in a company that they don't know anything about, then there is no way of knowing what the future holds for their investment.

As investing can be risky, it's always a good idea to do your research before putting any money down for any opportunity.

You have to learn to pay attention to details

When you want to invest in stocks, for instance, it is necessary to do your research before you make a decision. Never rely solely on the research of others.

You have to learn to pay attention to details, such as the size of the company, its assets, and its financial health when making decisions on what stocks to invest in.

Investors should not rely solely on others' research when they are looking for stocks into which they can invest money. They should always do their research before they make a decision and only purchase stocks from companies that are trustworthy and large enough for them.

A good investor will therefore not just blindly invest in something. He or she will always do research on a company before investing in the company. This is because, in the long run, it is better to take a few minutes to do thorough research than take hours to find out that you made an investment mistake.

In many cases, people make investing mistakes because they don't take the time to do their research and end up trusting others instead of studying it themselves. This usually happens when working with someone else's advice or buying shares through a broker.

When investors don't invest in companies that they have researched, they are more likely to lose money than when they invest in companies that they have done their homework about and found out there are some things about them that would make them successful for investors.

Posted Using LeoFinance Beta



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Gosh... I had to recheck this notification when I saw buzzy bee cos today isn't the end of the week... Lol.

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You're welcome @iskafan, it's well deserved! Congrats on your constant involvement on Hive 😊👍

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Honestly, it is one of those event which I learned the hard way. Like after loosing thousands in crypto. You solely rely on others assessment and end up on loosing money. I wish people not do these sort of mistakes. As this stage of life in crypto is not a childs play. We are actually loosing money and that is even more tiring than we can say.

While nowadays, I would rather not invest in a project before my personal research. I maybe loosing some opportunity but it is still worth it. As I still have my money lol. Investing on trend might work on a bull run but it is something which will take all your profits in one sweep. believe me it is tiring!

Nice topic to discuss upon!

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Thanks for your contribution, I appreciate it. I am glad you agree that researching before investing is important. And that even though it might look like we are losing out on certain trends it's okay as long as we didn't jump into them without DYOR, and of course, we still have our money to put into other things.
Thanks again for visiting.

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You are right. It is best to invest a few hours Dyor. Then years of regret. No matter how little or much we invest, we deserve to have that knowledge. After all, we invest to make a profit.r

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Researching on something gives us confidence. And we can move in or out of that investment opportunity boldly. Thanks for reading.

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That term "DYOR" sounds more like the practical aspect of it and this helps shapes such entrepreneur into the right path..

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That's right. Entrepreneurs are often shaped into the right path when they practice DYOR. Thanks for reading.

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DYOR is a must and then of course if there is two of you...
then...
you can
DOOR!
Popped in tonight from dreemport Iska;)

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Hahaha.... Wait, why is this funny? Maybe, it's because I don't understand the 'then of course if there is two of you...then..You can DOOR!'

@tengolotodo, please, come back and explain for me 🥺🤲

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DOOR Do OUR Own Research not DYOR make sense now?

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Sometimes a lot of those investors trust the word of their friends or advisors @iskafan, and know that they have good results, I would probably do that if I had certain friends or advisors that I trusted. Why? Because I am not a financial wizard, nor did I go into education for it either. So I would do some research as far as I could go in researching the advisors I pick out. Make sense? But I am not an investor, so I don't worry about it too much!
Excellent advice on this post iska!
This post was obtained through Dreemport.

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Yeeeeesssssss, it makes perfect sense. And somehow, I can't help but agree. So, if I am getting this right, this is what you mean.... That if we can't do our investment research, but we can investigate and choose the right financial advisors, then we are good to go... I'm I correct?, @jamerussell

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