Rule 1: Invest what you can afford to loose

Are you a beginner?  Do you want to earn some dollars from online investment?  Then this should be your RULE 1 - Invest what you can afford to loose.  You may think that there is nothing new in this Rule.  Because if you visit any blog or monitor sites disclaimer they will ask you to invest what you afford to loose (including mine ). 

But, the important point is - Most of the beginners are not following this rule .  I myself made this mistake when I was a beginner and I know few of my friends who made this same mistake. There are various reasons for this,

• Case 1: Investor may not be aware of this rule and thinking that the program admin is really investing in forex or other e-business to get the returns
  
• Case 2: Investor feel that the low-risk investments are boring.  He want to take risks to earn more and more.  So, he intentionally not following this rule
  
• Case 3: Investor think that a particular program is performing superb and want to invest more money in it. Here, he knows the rule but his greediness or his mind forces him to not follow this basic rule   

If you take Case 1 - Here, the investor is a new bie.  He don't know any rules in online investments.  After reading the content of a website, he thought that a team of investors are investing in Forex or Stock market to get good returns for him.  If the admin of a program knows how to earn 40% profit in 14 days then why the heck he need to open a site for his business.  He happily invest his money and get the returns right?  So, the advice for this investor is read more before you invest.  Refer to forums, blogs and spend good amount of your time. Understand how the programs are earning and then invest.  This category investors should invest very less money and should try to take the seed money as soon as possible

If you take Case 2 - Here, the investor may have some experience in online investments. But, he is greedy.  He feels that low-risk programs are boring.  He want to earn more and quick.  These type of investors always select and join get-rich programs.  These investors can be easily scammed.  May be the investor has lot of money and ready to take risk.  But, my advice is even if you are having more money don't take this type of cheap risks.  Take calculative risk.  Without hard work it is difficult to earn money.

If you take Case 3 - Here, the investor seems to be very sensitive.  These investors can be easily brain washed.  They usually take biased decision.  My advice to investors belonging to this category is "don't take decision based on minimum reading".  For example, don't follow only MMG forum or money-news-online blog.  Refer to atleast 3 forums and as much blog as possible.  Also do your own due deligence.  That is very important.  I will cover the methods to do due deligence in a seperate article

O.k. Next question. How much I can afford to loose? How can I calculate the money that I can afford to loose?  My answer to this question is - Don't invest more than 5% of your Monthly Salary in these high risk programs.  Set 5% as maximum limit and always stop your spending at 4%.  This is just my principle. If you have lot of commitments in your personal life then set the % even less.  Always consider these online investments as game and don't depend on the profit from these programs.

If you are unemployed or doing your schooling then don't even think about these programs.  But, most people are adamant   and they don't want to follow other's experience. If your character is like that then you will feel one day and come to my blog again.  My priorities in my blog is,

1. Alert new bies about the risk in these programs and give them all required guidance at free of cost
   
2. Give more information about my favorite programs and keep everyone up-to-date with daily happenings in this industry
   
3. Earn some referral commission and advertisement money for the valuable time I am spending in my blog

So, my first priority is to make sure that my readers are not losing much in these programs and to give guidance to new bies.  Of course, without taking risk you cannot earn money but your risk should be calculative.  

That's it for Rule 1.  Lot of other rules and strategies will be posted soon.  So, stay connected to my blog.  Let's invent smart way of making money together.......