Balance it level or just a tiny bit nose heavy. Balance point is right on the main spar.

Balance it with the tank empty.

Pick it up and put your finger tips right on the spar and right near the sides of the fuselage.

Thats how I balance my LT-40.

I do it with the nose pointing at myself. Just pick it up and put your index finger right in the middle of the spar. Nose should be pointing down about 2 or 3 degrees when your fingers are in the middle of the spar.

I actually like to fly mine a little on the tailheavy side. It's balanced about 1 or 2 degrees nose high with my fingertips right at the very back edge of the main spar. I actually have to land it with a little down elevator when the tank is empty.

You should balance it nose heavy for a beginner. If you balance it tail heavy and your a beginner--you can get into some major trouble. And once you get into trouble--your pretty much screwed. SPLAT!!!