In investing there are many choices, some are good and some are not. There are good and bad people trying to ensure they have fees from you. It is easy to be in the sucker’s list and if people are honest they will admit to being sucker at least once (more often more than once). Reading an article about credit counseling a list came forth:
Always follow the crowd
Jump both feet into a situation you don’t understand
Fail to get the full story on what is motivating the perpetrator
Assume that the favorable conditions that are compelling your risk taking will continue forever
Be willing to help a dear friend or family member with sacrifices that go beyond what is reasonable or balanced
Become paralyzed during any short window that you have to escape a risky situation
Overestimate your skills as an investor
Jump into areas of investment where you lack experience
Succumb to social pressure (most exploitation will occur by people you already know)
Take all the risks in a transaction with a person who has nothing to lose and everything to gain

To combat the above, the first aspect is to take your time. If an opportunity is only happening today, then you have to learn to wait. One of the service clubs which I am member has a policy any expenditure over $5,000 needs to be approved at the next meeting which is every 2 weeks or it takes about a month to make a decision. Even so, the last one took 3 months from the time of idea, research and decision. Someone who is stringing you along likely will not wait 3 months. Therefore, on decisions ensure you establish a time frame of when you can and cannot make transactions. If you are on a budget deciding between needs and wants, give yourself a few days. There are always great opportunities today and tomorrow, you can not take advantage of all them.

Linking to dividend paying stocks, one of the reasons to buy them is the simple act of paying a dividend implies the company is making a profit. You can see is the company making a profit or not. Was the dividend increased over the years? If yes and you like the prospects for next year, then you can do your homework to make a decision.

There are more questions than answers, till the next time – to raising questions.