Early last month, The North American Securities Administrators Association (NASAA) released a list of 10 financial traps that investors should avoid. The article also provides advices on the right course of action when shopping for financial products.

Among the advices, I found this one “If you don’t understand an investment, don’t invest,” can in fact be applied to many situations that don’t involve financial scams at all. Before making any investment decisions, a thorough research should be done in order to get all the facts, pros and cons, of the product involved. Without a full understanding of how it works, what actions are required, and possible consequences, your ill-advised investments will come back and bite you.