After last week’s show where a caller inquired about an investment program that would guarantee good returns with no risk, I had many emails come in asking about other types of similar programs.
- Human nature is to gravitate towards the easy buck. There is a real tendency to gravitate towards a program that shows a secret easy way to make money without risk.
- The irresponsible marketers prey on these human emotions.
- Are these programs illegal in any way? While some are a part of scams that go undetected for a while, most of these are software programs that promise just a few minutes a day will make you a millionaire. The problem is that the stars would have to align for them to work as advertised. Unfortunately, the consumer is out big bucks before they realize it.
Here is a rule of thumb with any “money making program”:
- There is no slam dunk easy solution to making money in the stock market that doesn’t require risk.
- Risk and reward is a timeless principle that doesn’t go away.
- There is no investment model or program that works 100% of the time.
- If a program is offering a way to make an enormous amount of money with apparently little or no risk, then there is a catch.
Michael Covell in his book, Trend Following, interviewed the traders who are considered the best in the business. These were his conclusions:
- Even the best have bad years
- No one has it all figured out
- There is no holy grail
Here is the bottom line – If I had the secret to making money in the stock market that would guarantee I would make millions, I would keep it a secret. If everyone knew, it would cease to work. Don’t forget the laws of irresponsible marketing!
PLEASE BE CAREFUL ABOUT THESE PROGRAMS
Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.
