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13 Red Flags You’re About To Make a Bad Investment

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You buy it with borrowed funds

Certain investors work with margins to leverage the potential returns of their investments. While this might work for high-risk investors, it’s not really the best option for everyone. Especially if you need to borrow money in order to be able to afford your investment.

If you’re investing on borrowed funds, you’re not only subjecting yourself to a higher risk, but you will also have to pay a certain interest on your margin loan to actually make the investment. So, think things through before taking such a decision!

RELATED: 14 Worst Mistakes You Could Make When Lending Money to Friends or Family

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