How To Avoid Tricky Oil And Gas Investments Pitfalls

By Kerri Stout


Handling money is tough. If you are not careful, you might end up getting trapped in frauds and cheated out of your money. You have to be particular with avoiding these frauds especially when you want to avoid losing money meant for your oil and gas investments. Here are the tips you can follow for avoiding fraud.

First, you should learn to ask questions. Do not just depend on whatever information you already have. Even if you already have those information, there might be a part there that you are unsure of. Thus, you need to ask the salesperson about these parts that you are unsure of. Unless you are satisfied, ask questions.

It is vital for you to do your very own research. If you do your very own research, then you should be able to get to know information that you normally would never come across if you just rely on the salesperson's help. The information you should research should be those that comes from the proper authorities.

It is also a given for you to know who your salesperson is. This means that you have to spend a bit of time checking out who you are dealing with when it comes to your investment before you actually let go of your money. Even if that person is someone you know socially, you have to figure out whether this salesperson is someone you really want to deal with.

When it comes to knowing the salesperson, you have to figure out whether this one is licensed to sell securities within your state. You also have to know whether the firms they represent have run-ins with other investors or with regulators. Their disciplinary history should be checked via SEC and FINRA too.

You should pay attention to offers too. There should be various offers that will come to you when you have plans of investing. Certainly, you have to be meticulous about it especially when those offers and pitches are unsolicited. Be sure to get a current financial information from an independent source when you go for this.

You have to protect yourself online. Remember that the Internet offers plenty of opportunities for the fraudsters. Thus, you have to be extremely wary when you are going online for your investment. You should learn of the right tips you can carry out to be able to protect yourself against online fraudsters.

If you are carefully investing, then you should learn what to look into when you are making the investment. You should know what red flags you should be wary of. There are really a number of fraud red flags when dealing with the investment. If you get to know these red flags, then making a choice should not be a difficult task for you then.

Phantom riches, guaranteed returns, and reciprocity are some of the red flags of investing. Of course, you also have to be wary of the halo effect, the bandwagon effect, and even the pressure put to you by your salesperson. If you are familiar with these red flags, then you should be able to make the most out of your investment.




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