Friday, March 27, 2009

Rules of the game

All online investments should be considered high risk, and you should always keep in mind some cardinal rules, regardless of how tempting and great an opportunity may appear:

  1. Never, ever, risk more than you can afford to lose. Never play with your monthly household expense money (rent, mortgage, utilities, etc.).
  2. Don't get greedy. It is way too tempting to compound for a few cycles before starting to withdraw.
  3. Get your principal back in the shortest amount of time that is reasonable for the program. Then you're playing with their bank, and anything you get back is free money.
  4. Please invest wisely and prudently, and do your own due diligence before making any decisions.
  5. Diversify between a number of short term, high yield programs, and more sustainable, long-term returns. This limits your risk and broadens your income base.

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