Over the past week, the world has been transfixed by another Netflix film – The Tinder Swindler – the documentary about the man who swindled people of an estimated $10 million through the dating app.
Romance scams are nothing new, but have proliferated in the era of social media. They’re some of the most common types of fraud in the UK, according to Action Fraud, which has seen a surge in cases recently.
This Valentine’s Day isn’t all about hearts and flowers – my colleague Vikram Barhat has looked at the financial risks of separation.
Investing and romance seem to be unlikely bedfellows, one involving the head and the other the heart. But what if the rules for avoiding romance scams can be applied to investing sensibly? In essence – don’t scam yourself with these simple investing rules.
Less is More
Although there are plenty of exciting opportunities for a keen investor, and trading back and forth can seem attractive, overtrading could hinder you from achieving your desired outcome. Overtrading means you ditch decent prospects too quickly in the search for the “next big thing”. And that’s not considering the increased trading costs.
Expect Ups and Downs
Do you wake up every morning not knowing whether your portfolio is wildly profitable or if half of it is lost (looking at you, crypto bros)? A number one tip for investors is to not take on more volatility than they can afford or handle – and if it turns out the beta is higher than anticipated, an exit might be the…
