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.
Every investment is hold with it's shares of gain and lost hence, making an informed decisions could a hedge and a step to a successful investment, no one will want to get involved in to something he or she doesn't know about, . making proper analysis and risk assessment in terms of profitability and losses should be considered optimally as it makes you to be on top of your game plans as regards to working towards the success of your investment. However it is always advisable to invest only the money you can afford to lose Incase things happens in the opposite direction.