Buffett has a famous saying: "The first principle of investing is never lose money, the second principle is never forget the first rule."

Every investor All money is hard-earned money, and preventing risks is always more important than gaining profits. If risk management is not done well, no matter how much wealth you accumulate, it may be in vain. It may take a lifetime to go from 10,000 to 100 million, but sometimes it only takes a moment to go from 100 million to 10,000.

Common types: eZubao, Shanlin Financial, Zhongrong Minxin, Qianbao.com, Tang Xiaoseng

In one sentence: Attract you on the Internet with the promise of high annual returns It is completely unclear whether to invest money or into products

How to avoid pitfalls: Don’t be greedy for high returns and make low-risk investments

P2P Internet lending platform is through The network lends money to the platform, and the platform lends it to the party in need of funds, realizing point-to-point financing, so it is called P2P. Fund financing is realized through the network, and the fund demander obtains funds, and the fund supply Isn’t this the best of both worlds if only one can get interest? But in reality, there are many opaque links, which are links where human nature does evil.

Since the birth of P2P, chaos has occurred in the industry because it has not been included in the existing regulatory system. The main reason is that many scam platforms use high returns as bait, fabricate project information, set up fund pools, and borrow new funds to repay old ones. Incidents ranging from radical business explosions to direct fraud and runaway incidents abound. Once-hyped institutions such as Ezubao, Xinliyuan, Campus Loan, and Moonlight Box have all gone out of business within a year or two of their existence.

The first investment trap is that the platform finances itself and protects itself. Self-financing means that the platform issues bids to finance itself, while self-insurance means that the platform provides principal and interest protection for investors. For example, Kuailu used its own film and television company, its own channel company, its own guarantee company, and its own P2P platform to finally invest in its own "Ip Man 3".

The second investment trap is borrowing new to pay back old. This kind of scam is a typical Ponzi scheme, mainly through borrowing new money to repay old money and repaying high interest. Once new funds slow down or stop entering, the entire system will collapse. Most P2P problematic platforms have the shadow of Ponzi schemes, such as Shanlin Financial, Zhongrong Minxin, Qianbao.com, Tang Xiaoseng, etc.

The third investment trap is to collect debts at a discount and harvest investors. The P2P platform is not only a disaster before investment, but also a problem even if there is a problem with the platform. Many P2P platforms will provide investors with an immediate exit option in the redemption plan after the explosion. However, if you choose this option, you will have to accept a discount on the claims held by investors. Generally speaking, the discount for those who are more honest and reliable is around 30% off, and the discount ratio for those with too big a hole that can only be paid out by harvesting investors is generally between 10% and 30% off.

Common types: stock trading groups, inside information, stock trading gurus

In one sentence: Be wary of online stock trading gurus, especially those who pull groups to recommend stocks to you.

How to avoid pitfalls: If you encounter anyone who recommends stocks or has inside information, block them decisively and report them

Most of the stock investors in our country are Chinese Elderly people, many of whom lack financial knowledge but have spare money, are targeting these wealthy, simple-minded uncles and aunts who want to make money.

I don’t know if you have ever encountered someone adding you on WeChat or calling you one day, saying that a certain stock trading guru has inside information, inviting you to join the group to listen and share, and then start sharing for a few days. , and finally recommended a few stocks for you to buy at high prices, but in the end they shipped at high prices, completing a wave of perfect harvest.

The reality of this kind of trap is to cooperate with the market maker to manipulate the stock price for harvesting.

There are various methods of stock price manipulation, but generally speaking, there are four main methods of operation.

The first is to simply raise the stock price through multi-account operations to attract retail investors to take orders at high prices and then ship.

The second type is to collude with the actual controllers of listed companies to raise the stock price through good news or hot topics such as "high transfers" and then ship the goods to make profits. The first two types of investors should have a deep understanding of this. A certain boss named Xu, who was fined more than 10 billion before, is good at this kind of operation.

The third method is to use one's own market influence to spread false news to recommend stocks to retail investors, raise the stock price and then ship at a high level. This usually deceives investors through various packages of expert stock recommendations and fake use of accounts similar to celebrities and experts.

The fourth type is the manipulation of overseas stocks, especially Hong Kong stocks. In recent years, many bookmakers have also gone abroad, and they are not limited to manipulating stock prices in the A-share market. There are also more and more cases of stock manipulation in overseas stock markets such as Hong Kong stocks.

The recommended stocks and insider information exchange groups we are talking about are mainly the third type of methods of manipulating stock prices.

Common type: XX original stock is about to be listed on NASDAQ in the United States, buy it quickly

In one sentence: Make wealth by investing in original stock listings Dreaming of cutting leeks

How to avoid pitfalls: Ordinary investors please trade in the regular secondary market

It is a cliché that people are not rich without equity. Equity. Investment, as a high-yield, high-risk investment product, will always have various myths about getting rich. However, various equity investment traps have also begun to gradually appear. In general, there are two main equity investment traps. Types:

The first type of investment trap is simple fraud by inviting investors to become partners of the company or falsely claiming to investors that the company has been or is about to be listed or sell original shares. To promote the dream of getting rich overnight to investors, in fact, they use investment funds to illegally raise funds.

The original equity investment trap was the so-called original stock scam. Now as everyone’s awareness of equity is increasing. As the market goes deeper, this type of trap is gradually decreasing, but there are still many such scams active in China's third- and fourth-tier cities. The stocks before the company is listed on the main board and GEM can be called original stocks compared to other investment methods. Said that compared with other investment products, original stocks have always been a scam-prone investment method.

This kind of scam generally sells equity of shell companies directly or indirectly, such as listing on the Shanghai Equity Custody Trading Center. Shanghai Yousuo Environmental Protection used targeted issuance of "original shares" to defraud investors, and once offered equity financing, promising investors an annual income of 48%, and illegally raised more than 200 million yuan, involving thousands of investors.

Or buy a company's stock in advance and transfer it to investors at a high price through the New Third Board agreement.

The second investment trap is to take over high-priced equity. The company that emerged is a good company, and the equity is also a good equity. The only problem is that the equity price is very expensive, far beyond the reasonable price. It is just a means for the previous holders to cash out. This trap is often seen in well-known unicorn companies. Some time before the listing, various equity investment funds took turns to hype up the unicorn's equity to a very high level, and they would face the risk of bankruptcy after the listing. Therefore, it is best to transfer this part of the equity to investors before the listing.

Common types: micro-trading, micro-plate trading, crude oil futures gold trading, buying up and down

In a word: by controlling the price of the operating platform , the early market pull will make you crazy, and then harvest

How to avoid pitfalls: Stay away from futures and foreign exchange trading platforms that manipulate prices

Exchange investment Traps usually contain certain physical objects and commodities, but they will illegally absorb funds by controlling the price of the operating platform, packaging certain businesses into financial products for sale to the public, and promising a higher fixed annual rate of return.

In fact, in China, there are only Shanghai Stock Exchange, Shenzhen Stock Exchange, National Equities Exchange and Quotations, Dalian Futures Exchange, Zhengzhou Futures Exchange, Shanghai Futures Exchange, and China Financial Futures The eight exchanges, including the Shanghai Gold Exchange and the Shanghai Gold Exchange, are formal exchanges approved by the State Council and the China Securities Regulatory Commission, while the others are all exchanges previously approved by local governments or the Ministry of Commerce. But now, some pheasant exchanges are popping up like mushrooms after a rain, claiming to be able to obtain ultra-high returns in the short term, but in fact they are devouring investors' wealth.

Among the illegal fund-raising cases at exchanges, the Kunming Pan-Asia Nonferrous Metals Exchange was the one involved in the largest scale and impact. Through the metal spot investment and trading platform, Kunming Pan Asia buys and sells itself, controls the platform price, maintains Pan Asia's price 25%-30% higher than the spot market price, and increases by about 20% every year, creating the illusion of booming transactions, and then borrows This package is called "Rijinbao" and other attractive high-yield products. But in fact, the price increase of 20% every year is just to keep Pan Asia's price always higher than the spot market price. Therefore, there will never be a real buyer, and it does not bring actual incremental funds; and the delivery provider does not need to make up for it. After paying the deposit, the investor's annualized 13.5% financial income from Rijinbao will be his or her own principal or the principal of new investors. When new capital slows down or stops coming in, the entire system collapses and investors basically lose their money. The Pan-Asia model uses the money of new investors to pay commission daily fees and short-term returns to old investors, creating the illusion of making money and thereby defrauding more investments. In December 2015, the Kunming Pan-Asia redemption crisis broke out, involving 220,000 people in 28 provinces, and the total amount of illegal funds raised exceeded 43 billion yuan. Thousands of Pan-Asia investors gathered in front of the China Securities Regulatory Commission to protest.

Common types: Five Elements coins, various MLM coins, to the moon

In one sentence: MLM fund disk using digital currency as a gimmick

How to avoid pitfalls: Stay away from counterfeit digital currencies and stay away from MLM coins that promote instant wealth

After Bitcoin surged tens of thousands of times in ten years, especially at the end of 2017 When Bitcoin approached US$20,000 in early 2018, people were full of fantasies about digital currencies. However, in fact, there are only a handful of digital currencies based on blockchain technology that have real application value, and most digital currencies have no practical application value. Ponzi scheme.

The first investment trap is air coins. Air currency is a digital currency issued in a blank slate without the support of actual projects, and does not have any actual value. The only two things it has implemented are a white paper and an exchange listing. White papers are for drawing the pie, and listing on the exchange is for selling the pie.

Generally, air coins have the following characteristics: First, the white paper focuses on storytelling rather than applications, and the project and technology roadmap cannot be implemented at all. The second is that the marketing ability is excellent, far exceeding its own technical ability, and the team even has no technical personnel at all. Third, the code is not open source, making it impossible to judge the progress of the project.

The second investment trap is pyramid schemes. There are endless traps in digital currency investment. In addition to the air coins we mentioned above, there is also a pyramid scheme disguised as digital currency. This scam is essentially a pyramid scheme and has nothing to do with digital currency. The scammers just replace the products in the original pyramid scheme with the most popular digital currencies. Some are even just named "digital currencies", but in fact there is no use area at all. Blockchain technology. Generally speaking, most of the MLMs in China are in the name of digital currency and are actually MLMs.

I personally believe in the law of cause and effect. Whatever you sow, you will get what you want. If you sow good causes, you will get good results. If you sow evil causes, you will get bad results.

Various financial investment traps, organizers and issuers of scams have created evil causes. Therefore, no matter how prosperous the early stage was, most people still entered. Those who have not yet entered, probably with their Money can only be spent in fear all day long.

If you have been defrauded on the investment journey, you can comment or send me a private message to teach you how to protect your rights and recover money.