5 Ways to Ponzi Proof Your Portfolio
I’m sure by now you know about Bernie Madoff and how he scammed people out of billions of dollars with his slimy Ponzi schemes. At first glance you may think how could people fall for these tricks, but then you realize some of the bright and big names he managed to swindle. If it can happen to them, then why not you?
You don’t necessarily always have to be scammed by a physical person. Sometimes it can just be a type of trade or stock. That is why it is important to keep these 5 things in mind when managing your portfolio:
- Learn - Take some time to figure out how the markets really works.
- Game Plan – Figure out your goals and what needs to be done to achieve them.
- Indicators - Use a little technical analysis and consider where the market should be heading. If you know the market is going down, then be a little skeptical when somebody is promising you some type of positive return.
- Market Proven – Trust yourself in making the right decision. Don’t make somebody else convince you of something you are not sure of.
- Discipline – Stay true to all 4 steps above and be strong when it comes to losses and PROFITS. Just look at all the people who got messed up because they took some gambles in a booming market.
While you may not have the time to stay current with the financial market, start yourself off by selecting stocks that are well financed, have good liquidity, and have a history of big swings. 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 discipline, you should 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.
Watch the following video for a little more about “Ponzing Proofing” your portfolio.
