Four Investing Rat Tales & 4 Safe Investing Tips Investing scams have a long
history. In 1919, as the stock market began to fall, an Italian immigrant named
Charles Ponzi claimed to strike gold in international postal-reply coupons.
Prices of postage varied from one country to another, so there appeared to be an
arbitrage opportunity buy postal coupons abroad, where they were cheap, and
redeem them in the United States, where they cost several times as much. Ponzi
started advertising his services, promising investors a 50% return in as little
as 45 days.Problem was, Ponzi didnt pay off his investors with actual profits.
He paid them with the money from other investors. When too many people tried to
cash in at once, the scheme collapsed. Victims were lucky to get back 30 cents
on the dollar. Asked to explain his actions, Ponzi reportedly said, The public
deserves exactly what it gets. No more, no less. Ponzis words may seem cruel and
remorseless, but theres an important lesson here: The only person you can really
count on to protect you from bad investments is you.In todays tough market,
people are more eager than ever to find safe ways to make and preserve money.
But that also means were more susceptible to pitches that seem and often are
too good to be true. These opportunities may range from outright fraud to a
legal financial product whose chances of success are stacked against you. Here
are some telltale signs of an investment rat and what you can do to pick up the
scent before you become a victim. Free Daily Traders Alert
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