As an investor, which means I have more cash on hand than needed to pay for my day to day living, I’m somewhat conservative. For me ’savings’ - which its the money you accumulate monthly because you don’t want or need to spend it is very important - I’m old!

Look at a ’savings’ example from my point of view and experience. If your day job nets you $1000 per week and your rent, food, car and other expenses cost you $700, the amount you don’t spend which is left over may be labeled your savings.

Savings is what you put away for future use. This ’savings’ is what you should be using to invest, not your weekly income, rent gets paid first before investments. Its important for me to clarify that ’savings’ is money I don’t touch. I have a comfortable life and the amount left goes away into accounts I don’t have ATM ready access to so that it really becomes a nest egg.

Find out what you need to live on and then block off the rest as ‘ savings’ or investment’ capital. This will accomplish two things, first your bills are paid and you should be living a comfortable stress free life. Second it portions off the excess money, segregates it and labels it as savings/investment money. That money is different from your everyday expenses and you have to place it somewhere you will say, “Oh, I can’t spend that money today, that’s in my savings account.”

For the purpose of this post let’s simplify your amounts which are to be put into savings and invested. As an example, this week you end up with $300 in savings so don’t carry it around and spend it, place it somewhere you don’t have quick access to it for spending. Once you have some savings, you can objectively figure out what to do with your nest egg.

Primary Goal Number One

Preservation of capital. This means if you started the month off with $300 in saving, the worst balance you should ever finish a month should be no less than $300 in your savings.

Never go backwards with your investments, never lose money. That should be everyone’s number one goal when saving or investing, do not lose your hard earned money.

If you worked all week long to earn that cash, spending it means you have to work another stretch to earn it again. Saving it means that’s one less week of work in your life. Save save save, make sure that whatever you ‘invest’ in or place your funds in for the purpose of preserving and growing them, you will never end up at the end of the week with less than you started.

Take secure calculated risks with your investment dollars but always be sure, as your primary goal, that you are preserving your capital. If you start your week with $300 and end it with $300.01 you have accomplished your primary goal and you are half way to a wealthy future. The following week, if you earn only $1.00 and end the two weeks with $301.01, again you have achieved a very powerful goal. You are half way there…

Primary Goal Number Two

Make certain that in your daily saving program you account for rising costs and daily living expenses. If the cost of goods around you is rising, gas, food, clothing……you will want your saving to rise and keep up with the economy. The cost of a barrel of oil has gone up over $10 in just the past few weeks and that will translate into higher gas prices, higher home heating prices and even consumer goods costing more. So, if your savings is only earning 2% per month and the cost of everything around you has risen 10% in just a month, again you will be going backwards with your buying power.

In part 2 I’ll take a look at how investing in precious metals such as gold and silver could not only preserve your capital but achieve the growth you need in order to outpace rising costs.

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US Dollar Index

The major trend of the US Dollar Index is still down. On Tuesday, the index went to a high of 76.98 before settling at 76.72, which is down by 0.07 compared to the previous day. The low of the week is 76.69. Immediate resistance to the Index is 78.96 (13-Week Moving Average Line), […]

All the links below open in new window

• So here Jude goes, his new investment publication is now alive and pretty much active
• Mark believes that it is time to buy more gold
• There is a review of HY Markets on Forex Blog
• Fool.com asks Can Making Money Really Be This Easy?
• Do you know who are America’s Best Young Entrepreneurs 2007?
• Forbes explains the Anatomy Of A Market Crash
• Want to work from home? Check out these 8 Practices of a long term freelancer
• How the US crash will hurt more than the USSR collapse

This was one of the most searched and discussed programs on the old HYIP Blog (over 500 comments). I’d give my analogy, and you can bite me if everyone is paid $55,000.00 in the next 10 years.

What is Global Pension Plan?

As advertised, Global Pension Plan (or GPP for short) is a venture registered in Liechtenstein, offering a possible payout of $55,000.00+ when you join them with a membership fee of $35.00. With your money, it promises to cover everything, including administration of your membership, the website costs and hosting, the banking solution and all.

Quoted from GlobalPensionPlan.net

“The face value for each member’s pension plan contract is €200,000.

Of this amount 60% or €120,000 will be disbursed as follows:

Premium for the policy assuming an average age of 34: €41,000
Loyalty Program Rewards (€2,000 x 12 levels): €24,000
Compensation to each member under 66 years of age at
payout: €55,000
Total amount disbursed: €120,000”

The scheme promises to create a series of contracts for each of the 100,000 members, morgage them to release the funds.

A good warning then was from this UK biz Site, which everyone should read. Still $35.00 was nothing much to lose, and to everyone, it’s like trying for the lotto.

The number has since been reached, and the last that I heard, they’re still raising funds even after the magic number.

From ‘Stella’, whoever it is from GPP

Dear Members,

We have finally figured out the deadline for the program, and
here it comes! This is going to give the members a clear schedule how to work towards the rewards.

- program will be closed on the 31st of December 2007

- documents have to be provided during January 2008

- payout will be between the 15th and 29th of February 2008

To make the short story a little bit longer, we are going to close the program on the very last day of year 2007. This gives you all enough time to complete the profiles and recheck the information you have provided. Also, there is enough time to handle all the inactivation and downline modification requests (please see my earlier update).

The recently launched 250,000 Additional Policies campaign doesn’t have any effect on this closure date. If we only sold 10,000 Additional Policies, or all 250,000 of them, the program will be closed on the 31st of December 2007.

The ID copies and the agreements (latter will be downloadable in the member area starting on the first of January 2008) must be returned during January. There is one full month to send us what we need and that should be enough for every single member. Full instructions of how to complete this step will be available during December.

And the date that matters you the most is the payout date. The Trust Partner has worked with the insurance company to be able to shorten the policy handling time after all the members have provided the documents. The payout is projected to happen between 15th and 29th of February 2008.

I am sure this update clarifies a huge amount of confusion amongst the members. Please share the latest news with your group and assure them that we are on the track heading to the great success!

Thank you for your support and cooperation!

You’ll expect more delays in February. Simple maths,

$35.50 x 100,000 members = $3,550,000.00 (input)

To pay over $55,000.00 x 100,000 = $5,500,000,000 (output expected)

Just looking at the zeros behind makes it really daunting. You have your usual insurance policies or life policies that you get over the shelf with insurance agents like Great Eastern, Prudential giving you a premium after depositing monthly/ annually a sum with them after a stipulated period of time. The reason why they’re able to cough the guaranteed premium is that they do invest your funds somewhere and it does take awhile for your fund to mature (not to mention making a good sum for their own too)

When did GPP started? Late 2005, and till date it’s 2007. To cough over 154% over a magnitude of 3.5 million over 2 years will take the art and work of Warren Buffet or George Soros for that matter. Not to mention the fact that the magic number was reached only a few months back, which means they didn’t actually start with 3.5 million for any types of investment.

Oh, there’s this 2,000.00 bonus for each referral too. It doesn’t take rocket science to know that this wont work out.

What comes after this?

It’s just delays and delays, people will just forget about their $35.00 whilst some of them will still pray for it. With the 250,000 contracts just started, you can expect another 250,000 members being scammed in the process. Reminds me of FLO when we started out HYIPs.

You can share with me your thoughts via comments or discuss with our Global Pension Plan thread on Nobullshit Network Forum

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There’s alot of talk today about real estate. With sub-prime loans hitting the fan and trickling into the prime loan market, we have a rare opportunity right now, that may not be available again for a long, long time.
Hello, my name is John Mulhollem. I have been in the real estate market for […]

Clarence, Forex Club updates on technical views,
US Dollar Index

The major trend of the US Dollar Index is still down. On Monday, the index went to a high of 77.06 before settling at 76.78, which is down by 0.20 compared to the previous week. The low of the week is 76.77. Immediate resistance to the Index […]

by HYWD

Few months ago we published a series of articles about creating a real high yield investment program. Unfortunately HYWD has been a victim of severe DDOS attacks and these articles reached very few people. So I am doing this recap now for everyone who mailed me and said they were interested in reading the series. And for these who did not mail as well.

The HYIP Business - Is It Really A Hopeless Situation? - Why is it so hard to make money with HYIPs, why so many of them are scams and what is real high yield investing.

The Real HYIP Can Exist - There have been few attempts to create rel honest programs, most crashed. Howver there is huge market for real high yield opportunities and if you wish to take part of it, you can have a very profitable business.

Creating A Real HYIP - Set Your Basic Concepts - If you are goign to create a real HYIP, you should carefully plan.

Generating Profits For Real HYIP - Invest in Trading - Trading is how most high yield investment clubs start and there is good reason for that - it can be very profitable and does not require unique ideas

Create Profits For Real HYIP - Invest in Sport or Financial Betting - You could hunt even higher profits, if you are willing to take higher risks - gambling/sports betting can beat any other activity in terms of ROI.

Create Profits For Real HYIP - Invest in Real Estate - if you are slightly more conservative you could base your investment fund on real estate investing and flip/flopping. It can return fairly good results especially if you leverage with bank loans.

Create Profits For Real HYIP - Invest in Internet Business - There is a huge opportunity lying out there in front of everyone. You can create an investment fund based on internet projects - low risk and high rewards business especially if you buy and sell established websites which already make revenue.

Create Profits For Real HYIP - Invest in Real Business - And who said that money can be made only online? The thing that has always beaten any other investment is old like the money itself - it’s called business and is everywhere. By Angel Investing or startups funding you could make a ROI which other investment methods could never achieve. This is pretty risky stuff however, especially if you don’t know what you are doing.

Creating Real HYIP - Calculate The ROI - here you will see why fixed ROI always means scam and how a real investment can operate.

Creating A Real HYIP - Advertisement and Referrals - This guide will not let you fail. All you need is a good concept and some advertising. And it’s much better when other people (your affiliates) do that for you.

Essentially that’s most you need to know if you wish to start a profitable high yield investment opportunity yourself. I hope more investors will see the potential of becoming a honest “HYIP” admin and will significantly improve the image of this business.

Jose Leon has published an excellent article about Registering an investment company. Now I’d like to discuss the other part of the work - how you could actually create and managed a successful - and highly profitable - investment club.

Why would you create a real high yield investment program at first place?

Because there is a huge market for this. Look at how many millions the scams are able to collect. Now imagine how much funds you can attract if you can offer somethign real and long term.

How to start?

By taking action. Create a plan, set your basic concepts. Make sure you know what you are going to invest in, what will be your long term vision, what are the expected profits and risks, how and when you are going to redistribute the profits etc.

OK.. Profits… So I Should Trade Forex, Right?

You could - if you have experience in trading. But that’s not the only way. You can pool funds and invest them in managed accounts. You can hire trader(s) or invest based on profitable trading signal system. And forex is not everything - there are futures, options, stocks, metals… The opportunities are endless.

Actually Who Said You Should Trade?

What about sports or fixed odds/financial betting. Combine 3 socker matches with odds 1.5 (kind of low risk bet) and if you win you have 335% return for one day.

But That’s Damn Risky!

True, but no pain - no gain. Or is it? Proper investing in Real Estate can bring you 30% - 40% yearly profits with minor risks - provided that you don’t buy overpriced properties. Leveraged with bank loans these figures can increase.

Hmmm, Kind Of Low?

Then what about investing in websites? A profitable website can be bought for about 10 - 12 times of it’s monthly income. This means 10% return each and every month - and that can even increase if you improve the site’s profitability.

And Why Stay Online?

The real business have been offering the most profitable business opportunities ever. The richest people on the world have not made their money on the stocks market or forex (with 1-2 exceptions) - they are rich because of building real offline businesses. If you base your investment club on Angel investing/Venture capitalism, only sky will be the limit.

At The End Calculate The Returns

Just make sure everything is correct and your investors are happy. You can make a very profitable fortune in one of the very few business areas where demand is much higher than supply.

There is a lot to more be said, that’s why I have published an entire series of articles about creating a real investment club on HYWD. If you feel like reading more, make sure to check it. But I home even this short article gave you enough food for thoughts.

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By Dean T Whittingham

100 traders were subscribed to and given a stock pick from a highly reputable trader/advisor. The pick came with entry price, stop loss and method of trail. His accuracy in the past has made him second to none, however very few of his clients can make the sort of returns he does, even though they follow his stock picks religiously.

Of the 100 traders that entered the trade (all at roughly the same price), only 5 went on to make double digit returns, and only 1 went on to make a triple digit return. 50 broke even, 40 lost money and the remaining 14 had mixed results but all were less than double digit returns. So what happened?

The fact that one trader went on to make a triple digit return proved beyond a shadow of a doubt that the pick was a good pick. However the perception out there in the trading arena, especially for those with stars in their eyes, is that trading is all about picking winners and finding the ‘magic’ entry technique. This is a fallacy!

You may want to write this down and put it somewhere near your trading station.

‘The ability to maintain discipline and stick to the rules during winning trades is the hallmark of a successful trader’. It is not a magic formula or set of indicators for picking an entry, it is not insider trading, and it is not working for an investment bank.

Here’s what happened.

The 40% who lost money were trading in absolute fear. Their fear drives them to place their stop way too tight (this is also due to poor money management and not defining what they are prepared to risk per trade), and no sooner had they gone long, the stock took an initial dive, took their stops out and then headed in the called direction.

What is silly here is that they were already given a stop loss position to use. The fact that they chose to use a tighter stop is a perfect example of someone who is either trading with too small amount of capital, has no idea of the trading system’s long term performance and as such draw down, or is mathematically challenged. All of these factors should have been addressed before trading.

The reason 50% broke even was because they were in fear or were too impatient .They saw themselves in a profit and immediately moved their stop to break even. Because they don’t understand the functions of market psychology, they don’t fully understand why prices retrace. The price retraced after the first move up and took their stops out.

Again, what is silly here is that they were given a trailing stop process to use. Why did they not use it? Their impatience is certainly one reason, but another reason is their inability to accept losses. How come the trader offering the stock picks can handle losses but some of these traders can’t? The answer is because they don’t know enough about themselves. It’s like having a split personality where the dark side is controlling their every move.

The 14% who made single digit returns were either moving their stops too early, too tight, or simply unable to hold on to their trade when seeing a profit (a fear of losing it), and so would just close out their positions. The 5% did the same but on less of a scale.

And so, even with a complete set of rules given to them on how to trade it, most couldn’t. Put simply, all these traders were thinking about the money, and not trading a clearly defined system. Thinking about the money is what brings out the weaknesses in people and also the bad trading habits and traits. Is this you?

Trading is a 5 step process. Most jump in at step 5 without fully engaging in the other 4. This is not surprising however as most trading system sellers don’t teach or care to teach the other 4 steps. However when one does engage in the other 4 steps, they can clearly start to see cracks in their own personalities that result in bad trading. The great news is, once these cracks are exposed, they can be fixed. This is just a small part of the 5 step process.

Know thyself first and then learn trading and the markets.

Dean Whittingham is owner and co-founder of Pentagonal Trading. He is a professional trader and trading coach and has experience in stocks, options, forex, CFD’s, futures and commodities. His passion lies in changing the trading landscape to prevent the many novice traders being ripped off by marketers, brokers and many of the system sellers, but also to educate traders on the 5 essential steps of trading. If you’re looking to find the right education on trading and trading system development visit http://www.pentagonaltrading.com

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Hello forex fans!
Yes, I know its been awhile, but I have a dominate side for perfection.
For the past couple of weeks, as long as you have been trading against the dollar, you should have done somewhat well. Im here to tell you, this isnt going to end anytime soon.
AUD/USD is heading for parity and […]