The three kinds of HYIPs and our related investment strategy.
Generally, high yield investment program means any investment vehicle that returns more than an ordinary bank deposit does. More specifically, it refers to those investment programs that yield anywhere from 1-100% a month. Most HYIPs yield 7-60% a month, with the programs yielding above 60% questionable and those below 7% a bit unattractive. For that purpose, we focus our view to those programs that return 7-60%/month although we do recommend programs with returns outside that scope with an appropriate, particular strategy.Based on how the returns are achieved, there are primarily three kinds of HYIPs.
Low and stable payers (Pays between 2-7% per week, 8-30% per month).
The first kind of HYIPs achieve returns from trading financial markets, such as the stock markets, currency exchange markets (FOREX), commodity markets, futures and options markets, etc. The main features of the programs in this category is that yields are variable and, above all, based on the performance of trading, or even fixed-income (often a little less profitable as i.e. 0.3-0.5% per trading day). Most HYIPs in this category pay weekly or monthly returns with variable rates. Their lifespan is often longer then 2/3 year, so we suggest a strategy of compounding in these terms:
You can invest a sum of money as you want and then compound half of your returns until you get back your principle. Once you have recovered your principle continue to compound/reinvest but this time at a rate of 60-70% of your returns. If the program sticks around, you should be able to profit quite a bit. Once you receive 250% return we recommend that you stop compounding and you can also exit from the investment or reinvest based on terms of plans, program lifetime and other parameter as Alexa traffic, discussion and reference on forums and monitors, their announcement like conferences, become private, increased interest, etc.
Mid-range paying moderately secure program (Pays 8-15% per week, 30-60% per month).
The second type of HYIPs obtain returns from business activities, such as venture capital investments, sports betting, high yield loan arrangements, real estate investments, etc. Most of those programs pay daily returns and also weekly or monthly although and the rate of return can be variable or in most cases, fixed. We have found that some of these company are a mixture of both Pyramid scheme and investment program, or especially those who pay the highest returns, just a Ponzi's scheme. Their lifespan is shorter (1/2 year). In this case we recommend you compound only 20/30% of your returns until you get your principle back, then you simply stop compounding and you can reinvest 2/3 time based on terms of plans and then just let the program run it’s course. Of course is very important take into account the lifetime and other parameters as above.
High risk HYIPs (Pays Over 17% per week and over 65% per month).
The third type of HYIPs does not achieve any return on capital at all. They are able to pay members because they use new deposits to pay interests to old deposits. Those programs are generally known as Ponzi schemes. Since no investment or business activity is involved, no real profits are generated. The transactions are simply a matter of redistributing the capital from those invested later to those invested earlier. The main characteristics of this sort of programs is that it inevitably fails from several weeks to some months. Another characteristics is that the returns can be quite high (2% or more a day) and with many paying daily or weekly even in no trading days. Many investors prefer this types of HYIPs and in fact the overwhelming majority of HYIPs out there belong to the third type. Even those programs claiming to be in the first or second category and producing solid evidence to support their claims will be found out to be actually Ponzi schemes. However, you can invest and make money with these programs most of the time using the right strategy. We suggest this:
Successful Strategies for HYIP of high risk!
1: Get in Early. Given our stated belief that all High Yield Programs are based on the Ponzi model, therefore it makes sense to believe that every program already has a “use by date†fixed to it.. it will fail and every day that we are undecided to join and invest our money we are one day closer to losing our money! It becomes important therefore to consider the life of the program already at the point when you join.. Join too early before it has proven itself and you just leave yourself open to scam after scam.. yes, I have rushed to join new programs that on the surface met all my criteria to find the admin had no intention of paying out any money and all of us who rushed to join lost our shirts! The subject of when is not too early, or too late is full of conjecture.. so you must take the time to investigate all programs before you join to make sure.. the plans on offer make sense, they are paying, answering support tickets, attracting new paying members everyday.. again, be guided by what you know, what you feel, and what others in forums and blogs are saying.. but be careful of what I call the “$5 cowboysâ€, who never put in any real money and fill the forums with every cash out for 10 cents they receive.. these “$5 cowboys†are easy for admins to keep happy but that does not mean when you add your $1,000 to the program your cash out requests will be handled the same!
2: Get in Big. Once your decision is made to join and invest into your chosen program there is no point doing a test run.. why? because if you have completed your research then by doing a test run with a small amount that just takes you that many days closer to “fail dateâ€.. At the point of joining and upgrading with your already decided amount is critical.. in the HYIP world once a program goes down it goes down fast (overnight)!
3: Get your initial investment out as soon as possible. Cash out cash out cash out!! Should be your only thought until you are in profit.. DO NOT rethink and add more money to the program later because again you are just leaving yourself at greater risk each day as you come closer to “fail dayâ€!
4: After 3 points above re-invest a proportion of your profit. The reason you invest money into High Yield Programs is to make fast money.. once in profit now you consider your next step! If the program met your needs, did not have any major issues while you were cashing out and you believe that the program still has legs for weeks, maybe months to come then consider re-investing some of your profit (not putting back any of your original invest money) back into the program.. Some use the 50/50 model.. cash out 50% per period and re-invest 50% of your profit If you see the program lasting for the foreseeable future then consider the 80/20 rule.. Re-Invest 80% of your Profit.. Cash out the 20%.. and so on!!
5: Cash out as often as possible! Whatever you decide above make sure every cash out period.. daily, weekly or monthly that you are cashing out part or all of your profit back to your Payment Processor! Money looking back at you from inside any program is worthless unless it gets translated into Cash in your Alert pay, Liberty Reserve, Perfect Money etc. account.. only then can you say “I MADE MONEY in this Programâ€.. not before!
Follow the 5 simple truths above and you are ahead of 99.9% of everyone else involved with High Yield Programs!
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