The First Principle

Benjamin Franklin was the founding father of the United States. There is a famous quote by him which says, "An investment in Knowledge pays the best Interest". Benjamin Franklin was a polymath - an individual whose knowledge spans a substantial number of subjects. But, if we speak of investments in just financial terms, the subjectivity of knowledge and it's importance is profound.    

I have come across many investors, who have lost far too much money due to investments in products that they don't understand. The first principle of a sound investment is to have a full understanding of the product and whether you are comfortable investing into it or not.  Yes, investors should take professional help. But still; they should never blindly invest anywhere and everywhere. It is ultimately their money and so they must understand in detail before making investment decisions. It is better to ignore a complicated product with a higher possible return. You rather should choose something which you can handle well. 

Remember; not losing money is the foundation of making money.