How to avoid losing money

Do not invest in what you have no experience and deliver savings to customers who offer exorbitant returns are some of the tips to avoid losing money.

While every investment has risks, there are some that can be catastrophic. Therefore recommendations should be followed relatively easy to apply, to avoid losing money on outlandish or excessive business risk.

Learning is expensive

It is unusual for someone to decide to establish a business over which they have sufficient knowledge, based simply on similar others have been very successful. The truth is that a company is not profitable only because the idea behind it. There is a set of details that affect you succeed or sink, as personnel management, production planning, among others.

If you want to avoid losing money but has not run a business like you want to take, ideally first competition work for a while, for details of the activity, and invest then moderately. Otherwise, we should learn from mistakes and this can mean big money losses.

Wary of "El Dorado"

Another typical bad investment is to pay or place funds with entrepreneurs offering incredible gains, to avoid losing money in these cases it is best to flee from such proposals. If a business is really a return of 100%, for example, any bank would lend the money to sponsor it.

If, however, it has to collect the funds from individuals, not on debenture controlled by the public entity responsible, but in the form of direct contributions or loans, is that the risk is too high or that the return not really levels is offered.

In any case it is recommended to invest in businesses where investors pay an amount or a percentage to attract others. Most likely it is a pyramid scam calls, and cannot avoid losing money, even all of the amount contributed. 'Exotic' or so such innovative projects which are more susceptible to failure are not recommended.