Jake Bernstein Review

Jake Bernstein is a self-declared futures trader and expert market analyst with special references to economic cycles. He holds a president’s post in Bernstein Investments Inc. and MBH Commodity Advisors Inc.

Jake Bernstein attempts to convince inexperienced traders that making money in the market is easy and involves little risk. He points out that there are seasonal price patterns every year, and you will have to understand "the flow with the flood" to make money in futures trading. He also conducts seminars to would-be futures traders.

The truth is that none of Jake’s forecasts and methods of trading show convincing results. Very few experts get trade information from Bernstein's $895 newsletter.

Jake Bernstein's newsletter proves that his suggestions have lost money for 5 consecutive years. This clearly shows that he is one of those “gurus” who is only interested in making money by selling his course.

Jake Bernstein’s company was fined $200,000 for making untrue profit claims, misleading promotional material, and downplaying the risk involved with trading.

Also, the NFA has recently (May 11) barred Jake.

Forbes Magazine Article by William Green:

I'm TEACHING YOU SOMETHING that I know works," says Jake Bernstein. "It's real simple." Bernstein, 51, is in a Washington, D.C. hotel meeting room mesmerizing an audience of aspiring futures traders.

Want to make a killing trading futures? All you need to know, says Bernstein, is that many seasonal price patterns occur year after year. Buy live hog futures on Oct. 30 and sell on Nov. 27. That's a trade that would have made you money almost every year in recent decades, he claims. Bet on the S&P 500 March contract to rise from Jan. 12 through Jan. 18. For 15 years, he says, this trade was a winner 93%of the time.

Does anyone believe his nonsense? Unfortunately, yes. Intoxicated by the promise of easy money, audience members line up to buy Bernstein's products, among them his books, with titles like "The Seasonal Trader's Bible" and "The Best of Bernstein: A Treasure Chest of Jake Bernstein's Market Wisdom". His monthly newsletter costs $400 annually; his weekly newsletter costs $895 a year. He sells three other newsletters, plus video courses and a CD-ROM ($695) that lists 60,000 seasonal trades. He offers telephone hot lines, and charges up to $2,500 per person for his two-day seminars.

Yes, you can fool some of the people all of the time. Commodity Traders Consumer Report, a respected futures publication, tracks the trades Bernstein recommends in his $895 flagship newsletter. If you had acted on these weekly tips from 1988 through 1992, you would have lost money for five consecutive years (assuming typical transaction costs).

Let's say you set up a $20,000 trading account in 1992 and executed the newsletter's recommended trades for that year. Your account would have been wiped out. In 1996 you would have lost 95%of a $20,000 account. Bernstein's response: "There are always losing periods."

Jake Bernstein professes to be an expert on the psychology of trading. In registering with the Commodity Futures Trading Commission, the Montreal-raised Bernstein wrote that he held a master's degree in psychology from Chicago's Roosevelt University. In fact, he never completed his master's studies.

In the 1980's Bernstein hooked up with an outfit called Robbins Trading and helped to manage futures accounts for investors. James Roemer, who co-managed money with Bernstein, says: "Jake is brilliant, but he can't manage money to save his life.

He'd get scared, buy at highs and sell at lows. . . . Bernstein kept losing money." Jake Bernstein found an easier way to get rich. Instead of just trading futures he would trade on investor's gullibility.

In 1996 he starred in an infomercial that has aired on nearly 400 TV stations. It hypes a video course ($180) called, "Trade Your Way to Riches". In it, a farmer named Harold Henkel tells viewers how well Bernstein's approach has worked for him. Henkel, however, now admits that he lost money trading in 1996 and 1997 while using Bernstein's products.

On his Web site, Jake Bernstein offers to set up customers with his personal brokers at Fox Investments, a division of the Chicago brokerage firm Rosenthal Collins Group.

Suppose you take Bernstein's recommendation and set up an account at Fox with $5,000, the minimum that Bernstein says you need to become a trader. Your commissions would be $60 to $80 per trade, about three times more than savvy retail customers pay. Bernstein's weekly newsletter offered 195 recommended trades last year. At that rate, a small trader's commissions alone might amount to more than double his or her original investment. Needless to say, Jake Bernstein receives a slice of the brokerage's commissions. A Fox broker appeared in Bernstein's infomercial, touting his seasonal trading approach.

No wonder anybody will try to convince you that investing in futures and commodities is not a risky venture, but you can see here, that is  simply not the truth. Indeed investment in futures is risky, and there is no doubt a possibility of losing everything. Hence, I suggest you to avoid Jake Bernstein.

I have personally found a system which is much more profitable than this, so I don’t have time to waste with these fake market gurus.

Best Wishes,

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