4 Stock scam tips keep investing safe, fun, exciting, interesting and profitable. Follow 4 easy tips to keep money in your pocket.
Managing Investment Markets Risks, Lesson 6. In the White Top View post, Crooks steal $140 million – your defense against stock scams we discussed stock scams in the White Top Investor lessons, Scam Defense. This post, 4 tips to check for stock scams we cover easy ways to check up on scams and scammers.
Be Aware! Know 4 stock scam tips and how to check for stock scams
To keep investing safe, fun, exciting, interesting and profitable, we need to avoid scams. This post gives you four easy ways to check out the sales rep or promoter.
4 tips to check for stock scams – Being aware and watching minimizes your stock scam exposure
1. Avoid the OTC Market
2. Ignore any unsolicited contact
3. Turn on your greed control
4. Do a registration check
No OTC Deals
As discussed in earlier posts, just stay away from the dreadful OTC Market. The Over The Counter Market has many bad deals. Simply avoid that market to stay clear of those deals. That avoids most North American stock scams. But the scams are not all there. Here are other things you can do to avoid becoming a stock scam victim.
Unsolicited Hang Up
Skip all the drama and loss of most scams by simply refusing to deal with any unsolicited promotion. Be cautious of any phone call, email or social media contact from a stranger. An unsolicited call promoting a hot stock or an investment opportunity is a scam. There are many of them; there are no exceptions.
Just hang up. Do not respond. Delete, mark as spam and forget about it.
Greed Can Hurt Your Future
Your greed gland needs some talking to. We must keep our greed under control and expectations reasonable. Keep investment and profit-making expectations realistic. Do your homework. Get help from someone with experience. Seek professional advice.
Excellent returns are possible
Legitimate companies can produce excellent returns. Consider investing as an income play. Investing in an income stream works in all market environments. For me the income play always offers considerable upside.
At times the bumpy ride annoys but the dividends keep coming and growing. Dividend payers are real business operations and fundamental parts of market strength.
I never worry about coming late to the party. Getting paid to ride is always good. Just buy into legitimate businesses. There is no need to go to a gambling den. Instead find and invest in real companies to hold solid winners.
A quick easy scam check
When a promoter gets a friend or acquaintance to refer us, we are more vulnerable. Promoters seek referrals from trusted friends to avoid our natural caution with a stranger. To protect ourselves we need an easy way to check out any salesperson offering an investment.
The quick easy answer, do a quick easy registration check on their name.
Get the name of the sales rep and the firm. The name of the sales rep is enough to start. Running a check is quick, easy and instant.
Canadian Registration check
Click this link: Canadian Securities Administrators National Registration Search
Enter the name of the sales rep, take any “no records” return to mean scam.
American Registration check
Use the Financial Industry Regulatory Authority site link: FINRA BrokerCheck
Enter the name of the sales rep, take any “no results” return to mean scam.
Scammers are clever but with our brains in gear we can avoid a ripoff. Just say no and cut off contact with the scammer. Help others; tell your friends and family. Our very best defense against any scam is being aware and making the effort to become educated investors. Listen to your gut feelings. If it seems too good to be true, you are right.
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Make money work for you
Use White Top Investor lessons to learn investing. By doing that you can grow into a knowledgeable, comfortable and confident investor. To learn how, you can learn investing one small step at a time at your own pace. Do that and become the master of your financial security and independence. White top Investor never sells or shares our email list. Learn more.
Managing Investment Market Risks, lesson links:
Introduction to Managing Investing Market Risks Lesson 1
Dangerous dividend warning signs Lesson 2
Investor retirement saving dangers Lesson 3
Exotic ETFs blow-up portfolios Lesson 4
Stock scam awareness defense Lesson 5
4 Stock scam tips Lesson 6
Bitcoin fraud trust and psychology Lesson 7
Investors hold patient cash Lesson 8
3 Risk or opportunity signals Lesson 9
Option risks, dangers and opportunities Lesson 10
Cautious look at options Lesson 11
Selling low melts wealth Lesson 12
Next lesson 7:
Bitcoin fraud trust and psychology
Have a prosperous investor day!
Bryan
White Top Investor
[email protected] WhiteTopInvestor.com
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