Monday, April 23, 2012

Good And Bad HYIP

From what you are probably aware of; there are a lot of HYIP opportunities that can be considered good and bad. What you are probably wondering or not aware of, are ways to evaluate them before you go out and lose a lot of money on them. Everyone is probably aware that any type of hi yield investing poses risks, and these risks are always there.
Any type of HYIP will contain characteristics that will slant them in one direction or another. It is by evaluating those characteristics that are able to sort them out. Keep in mind that the HYIP proponents are keen to confuse and issue, and deflect attention, but you can dig through most of that if you know what you're looking for. Below, you find some examples that you will assist you in your decisions and research.
- Games of chance v investments: There are hundreds of games sites on the internet, many of which cost money to enjoy. While there is certainly nothing wrong with that, they obviously have no place in our consideration of hi yield type investments. They should be identified, and thrown out whenever they seep in.
- Recyclers' v generators: A lot of HYIP out there like to invest in the same thing. While this may be ok, there are a lot of traps; especially if this is hidden, or denied, and the expected results are overstated.
- Short term v long term: All HYIP's that offer excessively fast returns are almost always doomed. Because of this, you should beware of the excessively fast money merchants.
- Real v virtual money: A lot of the HYIP's pay your returns into their own accounts, and tell you that the money is there, often with restrictions on how you can get access to it. This method is very widespread, and is usually ok, but still needs to be tested before you invest a lot of money into it.
- Fixed interest v variable return: As you probably know already, fixed interest looks nice. Although it's usually not consistent with actual earning rates, it still raises a conflict and sometimes complete failure. A lot of the best HYIP's deal with the problem simply by offering low quotations of minimum return, although its better to be dealing with someone who meets those standards, than someone who repeatedly defaults on more optimistic targets.
With any type of HYIP, you should always consider them to be bad until you have proof that states otherwise. Don't get the wrong idea; there are a lot of these out there that can be very beneficial. Before you invest your money, you should make sure you know what a good and bad HYIP really is. 

Invest Efficiently

In this article we will describe how more effectively to invest in HYIPs. Beginners and some old investors often have situations in which they do not know how to proceed better and act blindfold. We will explain this with an example: there is profitable HYIP with attractive plans, it regularly pays you all percentage for a long time, but it is not actively advertised. The site does not update. What can make admin not to stop paying? Indeed nothing, but investors continue to invest and believe in the long work of this project.
Let's first be clear simple point is that every investor should understand all the principles of the HYIPs and immediately not to be in the clouds, dreaming of easy money. In the first place, each admin first pays for the costs of establishing HYIP program, its promotion through investors investments and only then begins to get profits. Over a long period this HYIP probably already has a net income. Consequently, the admin can close HYIP at any time when he understands that the time has come and he cannot get more money.
In the example above you should actively engage the analysis of this "sleeping" HYIP, search for any information that will enable you to understand the situation "inside" at least approximately. Therefore, your task is to find out in which situation HYIP is and predict its work plan. For example, we suppose that HYIP with plans 110% a day already pays during the month and it was advertised only during the first week. New HYIP with similar plans 109% a day appears and quickly gains popularity, also it is advertised everywhere. You should better abandon though paying HYIP but with unclear prospects, and go to the future, more new and active projects. In such case you will gain a perspective that will allow you to look up and look for new "stable" perspectives.
Yes, of course, there are cases that the new HYIP programs going to SCAM faster than the old sleeping ones. For example, an admin is too cautious or a beginner lacks confidence in himself, also HYIP can be simply under DDOS attack, but believe us, it is rather an exception to the rule which confirms it. In any case, do not panic and do not return to those old funds. Remember that nearly 100% of all online HYIP funds are ponzi or "future" ponzi and they will pay until the new investors come and eventually, without a competent advertising promotion, such fund slows down, gradually comes to zero.
You must understand the simple and obvious thing for all HYIP funds there are not enough investors, especially with large sums. Therefore, HYIPs have to compete and this means that if somewhere it has arrived, then in another place departed. Any active new HYIP will grab a piece of the old funds and will try to grab again and again. Any methods use: from the advertising as I wrote above, unto "black" methods such as slander on the monitors, forums and DDOS attacks.
Be clever and try to go from one good HYIP program to another, but don't limit yourself only one deposit. You should have deposits to different HYIPs. That will help you to minimize risk of losing money. Always keep in mind that the HYIP admin is just ordinary person with their own problems, fears and he has peculiar ways . For example, someone begins to denounce HYIP program for something on HYIP forums or draw parallel between known HYIP scams. The admin can have no bearing on the subject, but reading this he doubt if he needs to continue working and if new investors will come. So if you see that the HYIP is strongly attacked on the popular forums and monitors, it is better for you not to invest there.
We also do not recommend investing before and during holidays, and the most important holiday in all countries is a New Year. During holidays many HYIPs are being closed and new ones are being opened only to make fast money. So you should rest from investments in those days.
Hopefully, our first article in the updated site has been helpful. Thank you for taking the time to read it. If you have any questions, suggestions or additions, please, write to us via the contact form.

Investment Diversification

High Yield Investment programs usually involve in a variety of high risk and volatile field of investment such as Forex trading, Stock exchange, Sports betting, metal trading etc. There are also HYIPs that do not invest at all, scammers. From these facts, you can easily realize that there is always a risk associated with investment in HYIPs.
If you are not able to control these risks, you will lose your hard earned money badly. For that reason, you should be able to implement a mechanism to manage and minimize these risks to the smallest possible. The most effective way of minimizing these risks is Diversification.
What is Diversification as applied to HYIPs?
Diversification is a technique that reduces the risk by spreading your portfolio over many programs to avoid excessive risk imposed by HYIPs. In simple English this means " do not put all your eggs in one basket".
There are certain issues you should consider on how to diversify you portofolio over different programs. Let's see these issues one by one:
Determining how many Programs You should have
Obviously diversifying over 10 programs is better than investing into 2 programs. It is even better to have 20 programs instead of 10. But, it is hard to find 20 solid programs. There fore , The bottom line for diversification , as far as HYIPs is concerned is that , you have to diversify you portfolio over researched programs as maximum as possible. But, I want to clarify one thing; Diversification does not mean spreading your portfolio over scam programs. Always make a diligent research before you diversify you portfolio.
To put it briefly, diversify your portfolio to at least 5 to 10 well researched programs.
Mixing between Old and New Programs
You may have favorite programs performing well for long time, programs which you have more confidence, well researched and what you think are reliable. But there is a concern in HYIPs arena; there is always a calculated risk even with the most solid program. It is hard or impossible to exactly determine the age of a particular HYIP. For this reason, it is always recommended to mix your favorite HYIPs with new programs.
How much to Invest between each programs
It is obvious that you should spread your portfolio over different programs proportional to the programs credibility. But, you should be careful not to over invest in a particular program.
Let's see what does this mean, say you have 8 programs and your portofolio is $1,000. It is not advisable to put $450 in a single program while investing $50 each between the rest 7 programs. You should make a balanced investment. Balanced in a sense, spread your portfolio proportional to the credibility of the programs.
Let's how you can do this with your favorite 8 programs and $1,000.
To Star with, First group and grade your favorite programs based on their performance and credibility.
Say you have grouped your programs as follows:
- Class "A" (Top performers) programs - 3 Programs
- Class "B" (Good Choice) programs - 2 Programs
- Class "C" programs (Programs with less credibility than class "B") - 3 Programs
And your grading for each class is:
- Class "A" is 1.5
- Class "B" is 1.25
- Class "C" is 1
(3 x 1.5) + (2 x 1.25) + (3 x 1) = 10
Now, let's see how to distribute your portofolio over each class;
- For Class "A" programs: (1.5/10) x $1,000 = $150
- For Class "B" programs: (1.25/10) x $1,000 = $ 125
- For Class "C" Programs: (1/10) x $ 1,000= $ 100
Which means, invest $ 150 for each class "A" programs, $125 for Class "B" and $100 for Class "C" Programs.
Note that each number given is only for demonstration purposes; actual numbers are determined based on the number of your favorite programs and you grading.
You should also understand that the amount of investment for each program depends on other issues, such as the minimum investment of each program. Some programs have minimum investment of $10, $50, $100, $200; even there are programs with minimum investment of $1,000.
I would like to point out that you should always follow-up each of your favorite programs, make evaluations and adjust them accordingly.
In conclusion, there is no ideal diversification formula that is right for every investor- it depends on each program, your financial situation and tolerance of risk. But, if you diversify you portofolio over different programs, you money will always be safe even under the worst case.

Key Investment Strategies

Even though making money in HYIPs is not difficult, making a nice and consistent return on investment needs efficient and proven strategies. Here are four recommended strategies; every investor should practice in his daily activities to make nice returns on investments.
Here are the 4 Strategies you should practice in your daily HYIPs activities to Achieve Success.
Never invest unless you make a research
The first step you should take before investing your money into a high Yield Investment Programs is to find out the most profitable and stable programs that could bring a nice return on your investment.
1. Making research on popular search engine like google is the easiest way you can start you research.
2. Another tool for making a research is Forums. Forums are a great place to exchange ideas with people who have the same interest with you. There fore, as a research tool, you have to visit known, popular, trusted and professional forums and read what people are saying about different programs. You can also ask questions in these forums. But you should not believe every thing people are saying in forums. Because there are people answering your question, by posting their referral link, who are not interested in you but their commission.
One thing I would like to remind you is, you should never depend your research on a single forum.
3. Monitoring Sites are another place where you can make your research. But there are certain issues you should be aware of monitoring sites.
a) Do not depend on a single monitoring site
b) HYIP admins treat monitoring sites very well. Therefore, if you see paying status on monitoring site, it does not mean, the HYIP is paying all investors.
c) Read all rating given by the investors on the program you are making research.
Diversify Your Investment
High Yield Investment Programs are very high-risk programs .As a successful investor, one of the issues you should look seriously is to reduce the risks associated with these programs.
One of the effective strategies used to reduce the risk is through diversification. Investing your money into many programs.
Investing in a single program is risky, because if the program collapses, you lose all your money. But if you put your money into many programs, if one of the programs fails, you will still have money in other programs.
Always make a test Spend
Because As the risks associated with these Untried programs are high, always you should be cautious to join these programs. But if you decide to invest in untried programs always make a test spend, before investing big amount. After you make a successful repeated test spend, you can proceed into a series investment. But one thing you should be aware is some HYIPs pay you for a small spend but when it comes to large spend, they do not pay you.
Get your Original Spend back quickly and Make a regular withdrawal
As it is impossible to predict the age of HYIPs, it is always recommended to withdraw you money until you get your original spends back. Even after you get your original spend, it is always preferable to make a regular withdrawal. My Recommendation is withdraw 50% of the profit while investing 50% that is 50% compounding after you get your original spends back.
As you are responsible for your investment on HYIPs arena you should always implement these strategies to come up with a nice return on your investment.

Starting An Investment

When you begin starting an investment, you may find yourself wondering where you should begin. You may have heard friends or co workers talking about their investments, and decided you should give it a try. You may have also found yourself wondering where they got the money to start or how they knew what to invest in. Then again, there are a lot of people who don't know where to begin, so they never start at all.
The wide array of investment related choices, the vast amount of information about investing, and the risk alone is intimidating and may prevent you from taking those first steps towards starting an investment. Keep in mind that is doesn't have to be that way. Believe it or not, you only need to know a few basics in order to begin your career in the world of investing.
The first question most people have is where you get the money to invest. If you look around, you will find plenty of stock mutual funds that allow you to invest with 500 dollars or less. You could use your next bonus at work, your income tax refund, or simply put in some overtime for some extra cash. If you are unable to come up with 500 dollars to start your portfolio, many funds will allow you to skip the initial lump sum investment if you sign up for monthly withdrawals from your checking account.
When starting an investment, you are ready for some long term investments. The step in choosing is knowing what your goals are. The investment type you choose will depend on the amount of time available before you need the money. Most all stocks are considered long term investments, and therefore it's best to plan on holding stocks or stock mutual funds for five years or longer.
The next thing you will need to know when starting an investment is your risk tolerance. If you're the type of person that hides your money under your mattress because you don't trust the bank, you're probably not going to feel very comfortable investing in volatile technology stocks.
Now, you may be wondering how to choose an investment. Most investors and experts will recommend spreading your money over several different types of investments in order to reduce the risk, because one type of investment typically does well when another one doesn't. By having money in more than one type of fund, you're more likely to get a decent combined return in one category takes a downturn.
When you are ready to begin starting an investment, you should use caution and research everything that is available to you. The above will assist you in getting started; the rest is up to you.

Wednesday, April 11, 2012

What Is HYIP?

HYIP stands for High Yield Investment Program and is a way for people to invest money into high yield, high risk markets who couldn't normally do so on their own, usually because they lack the initial investment funds. A HYIP pools money from investors together and uses the funds to invest in these markets; investors receive a portion of the return on their investments over a pre-designated amount of time. Most HYIPs pay interest daily, weekly, or monthly over the Internet. While some HYIPs are valid investment tools, a majority are actually one form of a ponzi scheme.

Fraudulent HYIPs

A ponzi scheme is a fraudulent investment strategy that promises investors high returns with little or no risk. The scheme works by using money from new investors to pay existing investors; the criminal is always looking for new people to join in order to keep the cycle going. Investors are unaware that the money is not actually being invested; instead, it is being used for the criminal's personal use and to pay investors just enough to avoid being caught. Eventually the money runs out and the scheme is discovered. A HYIP can easily be a ponzi scheme because investors have no guarantee the funds are truly being invested.

Fraudulent HYIPs often have common similarities: many make false claims of secret banking systems and alternative financial networks, and most have websites that use financial jargon incorrectly and include fake testimonials, among other things, to convince investors that they are a valid company. In many fraudulent cases, not only are investors never paid any interest yield, they also never see their original investment again. False HYIPs became common enough that the Federal Bureau of Investigation (FBI) issued warnings about being taken in by the claims made in these fraudulent programs.

Examples of False HYIPs

Perhaps the most-heard-of HYIP scam is OSGold, a company founded by David Reed in 2001 that reportedly stole more than $250 million US Dollars (USD) from investors. Another large-scale scam is known as the PIPS scam, or People in Profit System. Started in 2004 by Bryan and Sharon Marsden, this false HYIP required investors to pay a $450 USD initial investment over an interest period of 180 days, for which they were promised a return of 2% per day.

Tips for Investing in HYIPs

When considering making an investment in a HYIP, it is best to do diligent research first. Any legitimate security that is sold to the public must be registered with the Security and Exchange Commission (SEC). If it is a trustworthy investment program, it will be searchable through the SEC.
Other things to consider include: whether the claims sounds to good to be true, and how the people running the program generate the high yield returns that are being promised. If the proponents of the HYIP cannot or will not explain how the returns are made, it may be best to avoid investing in the program.