Investment is the act of using your money to commit to a specific endeavour and holding a certain position for a long period of time, it might seem like a really good and easy way to earn money but investing has it own demons and is not as easy as people say. Below will be listed 10 demons of investing.

    1. It takes time: Unless you are an excellent trader or a large investor making money by investing is a game of patience and takes a lot of time since the profit you make is directly linked to how well the company is doing hence to get a profit you might have to wait a while.
    2. Research and effort: For a good investment you will have to research different companies that you want to invest in along with learning technical analysis, how to read the price chart, financial reports and statements along with monitoring your stock and the market.
    3. High Risk: The stock market is very volatile and can crash anytime and the higher your investment is then the greater the risk of losing money, when the company goes down or the stock market crashes people tend to sell their shares and leave the market sending the stock price plummeting and making it harder for you to sell and you may lose a lot of money.
    4. Investing against trading: Trading is much more profitable and faster than investing since investing reuses the same capital and takes longer time to get a return in profits while you can make the same profit in a smaller time rate when trading .
    5. Scams and swindlers: Investment is dangerous and risky due to the numerous scams and scammers out there who try to swindle the investors out of their money and since most investors are not expert in investing or don’t have any prior knowledge about investment they are easy targets and at risk of being scammed
    6. Professional Competition: Most people who invest are just normal people who don’t really have much knowledge regarding investment and the stock market etc and are at a disadvantage against professional investors and traders, you can hire a professional to handle your investments but you will have to pay a fee and the person might scam you as well.
    7. Credit Risk: This is when the company or the government body that issued the bond is unable to pay the interest or the money when it matures to the holder or investor, always check the credit rating before you buy a bond or invest to make sure there is low credit risk.
    8. Liquidity: To get profit from an investment it takes a lot of time and at times when you are in need of money and want to liquidate your shares or bonds then you will have to sell them at a lower rate and if the investment has not gained any profit, the stock has not risen in value or has not matured enough you will lose money, in certain cases you won’t even be able to sell or liquidate your shares at all until after a certain period
    9. Longevity: Investment is a long term commitment and sometimes there is a risk of outliving your investment, this is especially the case for older investors.
    10. Horizon risk: In cases like when events like losing your job, loss of property etc forces you to sell your investments before the expected time period you can lose money and even more so if the market is done during that time.