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 invested in this project and they end up becoming a failed one. 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 "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 not sure about.
Investing without any reasoning can just make one to invest without considering the risk and the probability of making lose or making gain from the investment.
Well, that question "what if I lose my money?" is really something that every investors need to ask themselves before putting everything to a certain project. The most suitable answer for that is to invest what you can afford to lose. It us a pretty common statement, but some may don't understand it yet.
Research, knowledge, experience, and anything along this line may help us find a better project than a plain scam, but it won't totally guarantee us a return especially when a project eventually fail or being dumped. But then again, that's still better than just investing mindlessly because of the mindset of becoming rich in a short period of time.