I have observed that most people who encounter fraud or investment failures can often be attributed to two main reasons: one is impulsive investment without full understanding, and the other is uncontrollable greed.
In many fraud cases, scammers often use emotions, morals or social relationships to win trust, thereby weakening your rational analysis of things. They take advantage of human weaknesses and, after gaining trust, induce you to make quick decisions under pressure by creating a sense of urgency and stimulating your greed. In this process, your original judgment is blinded by trust and greed, and eventually leads to falling into the scam.
Investment losses are often accompanied by similar psychological traps. Many people see others making money, and they envy and are eager to get rich quickly. As a result, they invest heavily without thinking, dreaming of getting rich overnight, but are often hit by market fluctuations, resulting in serious losses. Greed often makes people ignore potential risks, and ultimately leads to losses far exceeding expectations.
Therefore, the two key principles of investment and fraud prevention are: do not easily get involved in areas you don’t understand, always stay rational, and control your greed.
