5 Ways to Ponzi proof your portfolio and sleep well at night.

I've been in the financial arena for over 30 years. I must say I that I am appalled to see scum like Bernie Madoff stealing money from honest people.  In many ways he's committing one of the most heinous of crimes. He's destroying the financial standings of  unsuspecting victims for his own selfish greed.

In my opinion, he should just go right to jail as he has already confessed to the crime. We've seen them throw people in the slammer for much lesser offenses, but that's just my opinion.

Okay, so how do you Ponzi proof your portfolio? The key here is to take control of your own financial future. This is not as difficult as you might think. Not to mention that the mistakes you may make are your mistakes, and not that of a crazy, old guy down in Florida who may run off with your money too. I'm just amazed that anyone thinks that they can actually get away with this garbage. Everyone knows a Ponzi scheme is doomed to failure; there is not enough money in the world to keep them going. By nature... it eventually has to collapse. But, if you take control of your own money... and remove it out of the hands of people like Madoff... then you can sleep more soundly at night.

Watch this short video on how to Ponzi proof your portfolio here:

Here is what you need to do:

# 1: Take control of your own destiny by learning how the financial markets work. They are not as complicated as everyone makes them out to be.

# 2: I believe that once you learn how the markets work, you must create a game plan to stay on track and to reach your individual objectives.

# 3: One of the easiest ways to tell if a market is going up or down is to use a simple technical analysis indicator, or our "Trade Triangle" technology, which literally points out the direction for you.

# 4: Following a proven approach in the markets is one of the easiest and fastest ways for you to accumulate wealth. Sometimes it is difficult to know who to trust. The key here is to trust in yourself. You don't have to hand over your money to someone who could potentially ruin your financial future. Don't give them that opportunity when you are capable of steering your own financial ship.

# 5: This is perhaps the most important element of Ponzi proofing your portfolio: discipline. You must be disciplined to take both profits and losses. By following a market proven system and your game plan, I think you will be happy with the results of your work. You will also have the satisfaction of knowing that you did it yourself... you stuck with a plan and made your final decisions.

Many people think you have to spend hours upon hours looking over and reading the financial press to find winning trades. Remember, that the financial press is old news and the real news is happening through price action movement. However, you can start yourself off by selecting stocks that are well financed, have good liquidity, and have a history of big swings. However, you need to ensure that your portfolio is diversified into several non-correlating markets. If you trade that diverse portfolio throughout the year, with a game plan and disciple, I believe you will see the results you are looking for. Once you do this, you have not only created a Ponzi proofed portfolio, but you have also made it practically bulletproof as well.

Okay, let's sum up what I've just said: First, you need to create and implement a game plan. Next, you need to use market proven strategies to help guide you in the correct direction of the market. Thirdly, you need to follow your game plan with discipline. Fourthly, you need to make sure that you are investing in a diverse group of holdings (stocks, bonds, real estate, futures).  Last, but not least... you can sleep well at night.

Every success in what promises to be an exciting future for all of us,

Adam Hewison
President, INO.com
Co-creator, MarketClub

This Stock Is Ready To Rock ... New Educational Trading Video

Yesterday, I made a video on gold - you can watch it here. Today, I have been looking at a market that has a lot of potential on the upside based on its relationship to the gold market and a classic chart formation. This particular chart formation is one of the most reliable in the arsenal of patterns that I watch. Making this pattern even more powerful was the fact that our "Trade Triangle" technology kicked in today for the first time in six months for this particular stock.

The chart formation we are talking about is called a "head and shoulders" formation. This formation is well-known to any serious market technician as it has proven to be one of the most powerful and reliable formations over the years. Another positive about this formation is that it actually measures how far a move will travel on the upside or downside. You can have a "head and shoulders" top which would indicate prices going lower, or you have a "head and shoulders" bottom indicating prices going higher.

In this short video, which lasts four minutes you'll see exactly how I analyzed this particular stock and what the upside potential is for this market. There is no charge for watching the video and no registration is required.

I highly recommend that you take four minutes to watch this educational training video and see how you can benefit from this particular formation.

Adam Hewison
President, INO.com
Co-creator, MarketClub

"Saturday Seminars" - Value Investing

Commodity trading involves a high degree of leverage. That leverage allows for large returns, but also large losses. Due to the high degree of risk involved in high leverage, anyone involved in commodity trading should be aware of the risks - and gain as much understanding of trading strategies as possible.

In this informative session, Hal Masover will discuss value investing in general and the specific technique of scale trading.

Value investing is an intermediate- to long-term investment method that takes advantage of supply/demand imbalances occurring in most physical commodity markets. Although this time-tested method has been around since at least 1975, it is not well known among traders. As a leading expert on the topic, Hal will provide you with in-depth, up-to-date information on this important technique.

Hal Masover, the author of Value Investing in Commodity Futures has built a company around commodity futures as a conservative intermediate to long term investment vehicle. Hal Masover has been licensed as a commodity broker since 1987. Over the past years he has learned a lot about what works and what doesn't work in commodity trading and investing.

---

Saturday Seminars are just a taste of the power of INO TV. The web’s only online video and audio library for trading education. So watch four videos in our free version of INO TV click here.

INO TV

This market is getting wound up ... so pay attention (New Gold Video)

I think that the gold market is getting wound up. If I'm right, we're going to see an explosion in gold to the upside.

Here's the reasoning behind my optimism for this market: Right now we're seeing gold in an accumulation phase. A move over the $875 level in the spot market will signal the first step to propelling gold in an accelerated upward trajectory.

Certainly a move over the $890 level, basis spot, will begin to bring in many new buyers. When this happens, I expect gold to go into a crisis mode as more and more people look to preserve their capital and seek haven in this yellow metal.

Watch video here:

I would not be surprised to see more backing and filling as the bull market regenerates itself for an upward move. What may create this is a further deterioration in the world equity and banking markets, and the potential of nationalizing the banks both in Europe and in the States.

While this seems extreme, we are living in difficult times. It even appears to be getting even more complicated and fragile. I do not see any fast turnaround, via the new Obama administration, and I think they have been given an impossible task.

There is no guarantee that spending ourselves out of this recession is going to work. It even sounds like a silly plan when you say it out loud, "Let's spend our way out of a crisis that started from spending what we don't have." We will be printing more money and devaluing the dollar and its purchasing power. This can only be reflected in higher gold prices as investors try to maintain their purchasing power.

I have given you the key levels to look for. If these levels are broken on the upside, I would ask that you seriously think about taking long positions in this market. Currently, the April electronic contract is the one that has the most liquidity and that's the one to look at if you're not trading in the spot gold market.

Every success in the markets and in life,

Adam Hewison
President, INO.com
Co-creator, MarketClub

The Cheetah & The Trader

Today we've asked Michael Bellafiore from SMB Training, to give us some advice for frustrated traders. Enjoy.

==================================================================

I had an interesting conversation with a young trader from another firm today. This young trader pops into my office from time to time and talks trading. He is a very bright and competitive young man. And he is struggling. He killed it in October, but over the past two months he has dug himself a huge P&L hole. I have been hearing a lot of stories like this lately.

A trading friend of SMB Capital told us that one of the best ten traders we know gave back his whole year last month. While I was getting breakfast today a few nervous young traders from another firm stopped me to ask how our guys were doing lately. They relayed that many in their firm were "decidedly negative". I have heard that a few Tier I day trading firms recently restricted trader losses going forward. I was at an awesome holiday party recently, with incredible views of the NYC skyline, and one of the best traders on the Street was practically crying to me about how badly he has been trading.  I felt bad for the guy.  I spoke with two energy traders this week at the Reebok Club who offered that they were probably going to be fired.  The reason for their likely termination: failure to cease losing great amounts of money. I know that for SMB, last month presented a challenge to some of our traders.

Personally, I don’t have a bad month. I have traded through enough markets that I have developed a trading system for myself that allows me to profit no matter what the market. Last month I was positive. And, I will share what I said to that young trader who was worried about his future. You need more experience. You need to see some more markets. You need to make some adjustments. You need to go back to the basics.

One of our bright new traders, a graduate of the best undergraduate business school in the country, who has been struggling, made a list of plays that he will focus on this month. Great work here… But there were a few plays on his list that I didn’t even understand. They were technical plays that I did not use. And I will share what I told him. Trading is about finding weak stocks and getting short at levels that offer an excellent risk/reward. Trading is about finding strong stocks and getting long at levels that offer an excellent risk/reward. Do not make things so complicated.

Continue reading "The Cheetah and the Trader" HERE