Experience shows that if you want to make more money you need to invest. When it comes to making an investment decision you need to get educated, do the research and plan your approach; there is no short cut to this. However, there are hundreds, maybe even thousands, of people who have thought they had found a quicker way to invest but later realised they have been ripped off with empty promises. I would like to share what I know so that you do not fall prey to spruikers selling the dream of easy money.
We often receive calls from people who have handed over thousands, if not tens of thousands, of dollars for what we call a ‘Black Box’ software program. Black Box software is the term given to computer programs that are touted as being able to pick winning stocks in the share market. The usual spin by these companies who promote such programs is that you press a few buttons on your keyboard and then watch the money come in. Obviously these claims are false however people get sucked into the scam.
We have done our own research into these spruikers and I have to say that what we found is disturbing. The people who have spoken to us believed the story they were sold, including how the software makes it seem easy to make a lot of money and all you have to do is push a few buttons and follow the buy and sell recommendations in the software and wait for the money to roll in. Sadly, what leaves people as prey for the spruikers is simply a person’s desire to be financially comfortable.
If you want to become independently wealthy you need to invest in yourself first. The best computer you will ever use to make your investment decisions is your educated brain, not a software program, and it will take a few years to get this knowledge.
The reality is that we all want quicker ways of doing things like learning, booking holidays, communicating with others. It means the idea of having a program tell you what to invest in is going to be tempting for some. The truth, however, is there are no short cuts and a software program should be no more than a tool used to apply your knowledge before making your own investment decisions.
The difficulty for the uneducated is that these companies selling the ‘Black Box’ use a sales script and high pressure selling techniques designed to pull at the emotions. As soon as a person finds out they’ve been taken for a ride it’s almost impossible to contact the company again as one company is closed and another opened to offer the scheme. This makes it very hard for those not happy with their purchase to get their money back.
If you receive a call from one of these companies here is what you can do:
- Make it clear you are not interested – they may continue to call you so just hang up.
- Do your research on the internet by searching for the company name as well as the word ‘scam’.
- Check on websites such as ASIC, Moneysmart and Consumer Affairs in your state for listed scams.
You can also make a complaint to be investigated by a government department if you have handed over your hard earned cash for such a program.
The problem is that many people still do not really understand how the share market works and this is why some fall prey to scammers offering to deliver riches. If you are serious about wanting to make more money through investing find out how to get educated. Once you have the knowledge you have it for life.