Some investors are ready to invest on any project they come across just because they really want to make profit and some of this projects are considered to be a scam project which people invest reasonable amount of money. It is very painful when money is invest in this project and they end up becoming a failed one, but I think good reasoning before investing will really help investors from losing much money about projects they do not know about much. Investors needs to ask themselves before investing is "what if I lose my money investing it in this project? I think this question can help people to invest with the amount they can afford to lose or not to invest at all on project very sure about.
Investing without any reasoning can just make one to invest without considering the risk and the probability of making losing or making gain from the investment.