| Now as much as I endorse using ETFs as the | | | | only because of their potential liability, but they also |
| cornerstone to your portfolio, I acknowledge that | | | | don't want their clients losing money with some half |
| there is a demand from a few of you to use financial | | | | baked scheme. Auto trading is only for those who |
| newsletters as a guide for your portfolio. Realize that | | | | have a previous long term relationship with the |
| no stock picking newsletter or option picking | | | | newsletter, and can afford to take those risks. |
| newsletter has a golden key to profits, nor should | | | | 6. If you can, perform online research of the |
| any newsletter recommendation ever make up more | | | | newsletter to read independent reviews. Bear in mind |
| than a very small portion of your portfolio. | | | | that some independent reviews tout others in place |
| Remember, they are not showing you their secret | | | | of, so there are not really independent. |
| formula for a reason. But if you understand the risks | | | | 7. Costs for financial newsletters can range from $50 |
| and are committed to doing this, here are 10 | | | | to $150 a month. Don't pay for more than a month |
| unbreakable rules to follow before choosing a financial | | | | unless you have had an existing relationship and proof |
| newsletter: | | | | that the newsletter works for you. And if you are |
| 1. Look for or ask to have a free trial. A free trial is | | | | not making at least what you are paying, cancel |
| helpful in determining what you see, what you get, | | | | them immediately. |
| and is it for you. If they are that good, a few days | | | | 8. Read their cancellation policy. If you can't get your |
| to a month of free service is not going to kill them | | | | money back or a prorated portion within a few days |
| 2. Look for or ask for prior trades. If you decide to | | | | or by the end of the month, don't sign up. |
| purchase a newsletter, you want to know if they are | | | | 9. Fraud warning: There are some so called "financial |
| good. If they are not willing to give you proof of | | | | experts" who are paid by companies to push their |
| recent prior trades (and not just the winners, but all | | | | stock. They submit newsletters or spammed emails |
| trades), be wary.a. Long term past performance is | | | | glorifying a stock. Never trade off of a spammed |
| the NUMBER ONE consideration for your choice. If | | | | email. Never trade off of a newsletter that is paid to |
| you can't readily identify the month to month or year | | | | push a stock. Filtering out all bulletin board or penny |
| to date performance for several years, forget it.b. Be | | | | stocks eliminates 90% of these. |
| sure that their formula hasn't changed too much over | | | | - Another hint of these fraudulent newsletters is |
| time, which can significantly distort performancec. | | | | promising you a certain percentage, or worse, |
| Look at their performance during rough times too. | | | | glorifying a percentage through 408 testimonials. A |
| This will give you insight how they handle the bad | | | | few testimonials are fine, but if you feel that the |
| times as well as the good, and should signal whether | | | | only thing pushing a newsletter are the testimonial |
| you can stomach this. | | | | returns, be very wary. |
| 3. If you choose to use a newsletter, allocate only a | | | | 10. These days, their newsletters should be able to |
| small portion (less than 5% total in my opinion) of | | | | be accessed online. Your newsletter of choice should |
| your total portfolio to its recommendations. This | | | | have a phone number, email address and physical |
| amount should be no more than what you can afford | | | | address for you to contact them in case of a |
| to lose, and nor should you ever skip to another | | | | problem. In fact, you should contact them with a few |
| newsletter with another 5%. Draw a line in the sand. | | | | questions before you start using their service, and |
| - Read the disclaimer that these newsletters mention | | | | see what their response time is. Slow or no response |
| before purchasing. They are written not only for their | | | | to your query can signal potential danger. |
| protection, but for yours as well. | | | | Following these tips will hopefully filter out many of |
| 4. Look to see if the newsletter covers both sides of | | | | the financial newsletters that are simply not worth |
| the market (long and short). If a financial newsletter | | | | the aggravation. Don't become tempted by over |
| only goes long, then it's telling you their systems are | | | | stimulating yourself with outstanding past |
| set up for bull markets. If so, find out how they | | | | performance. I, too, can put together a list of |
| handle bear markets or trendless (flat) markets. | | | | wonderful returns that may or may not be true. |
| 5. Ask if they have an email alert system. Getting | | | | Remember that it is easier to sell shovels than dig for |
| emails is a lot easier than going to their site every | | | | gold. This is good reason to follow the entire list of |
| day. Some newsletters even offer an auto trade | | | | rules to catch yourself before you lose time and |
| service, by which your discount broker trades the | | | | money. I am always interested in hearing your |
| financial newsletter recommendations on your behalf | | | | opinions, reviews or thoughts. Are newsletters worth |
| without you physically putting in trades every time. | | | | the paper they are printed on? |
| Be warned! Most brokers don't allow this feature not | | | | |