Well the beginning of this week it seems has been pretty disappointing for many HYIP investors, particularly for the investors who prefer the high return short term HYI Programs. Understandably Extra Income, the short term program that had existed for almost 139 days has finally reached its eventuality, that is has scammed. And as always the case is, there are many worried investors who have lost their hard earned money.
Although we did not join this particular High-ROI Program, but surprisingly i had to reply to 8 mails from anxious investors regarding their pending payouts. The extreme uproar created by the scamming of Extra Income, probably incited me to publish this article with an aim to summarize what could be the best approach towards the high return short term programs specifically. [ Nothing new, probably these points have already been mentioned in our blog many times before, but i guess recapitulating the basic facts about high yield investment programs, once in a while never hurts]
Probably all of us, have some experiences of investments in our offline life. Do we ever come across, any real investments offering such high returns. ‘No’ friends we do not. Therefore please do not keep any misconception, most at least 99.99% of the HYI Programs are ‘Ponzi’ games where the ‘Cash Flow’ is probably the most important factor. The basic mode of their function is by paying previous investors,with the money invested by the new investors.
As mentioned in one of our previous post, i had lengthy discussions with real Forex traders regarding the issue that whether such high returns offered by the short term programs can be generated in a sustained fashion. The reply was unanimous that sustained high return in Forex Trading is almost an impossible goal to achieve.
Thereafter the question comes, whether its at all possible to be ‘in profit’ in the short term programs. Well, there are investors that i know who earn quite handsome profit by investing in the short term high return programs. But, definitely it has its own risks.
In this section, i would like to lay down few of the ‘Best Practises’ that i feel one should follow whenever considering investments in short term HYI Programs, for that matter in any high yield.
1. First and foremost, one should never ever forget the ‘Golden Rule’ that is ‘Do not invest,more than you can afford to loose’. However promising a HYI Program seems to be, an investor should never forget this primal rule.
2. Please do keep in mind, no matter how well a HYI Program has performed till today, anything can happen tomorrow.
3. Particularly important in case of the short term high return programs is to answer the question ‘ When to join? ‘ and more importantly ‘when to leave?‘. That is where the ‘Expenditure Analysis’ and the ‘follow Up’ of the HYI Programs may be beneficial.
By ‘ Expenditure Analysis’ what we mean is to create a rough idea about how much the concerned management has spent in order to create the HYI Program, in terms of the site template, the script used, the hosting, Ddos protection,SSL Encryption and lastly, but probably the most important the initial promotion. Here is where the review of the HYI Programs help.
The ‘follow Up’ of the HYI Programs probably can be useful to answer the extremely important question that is ‘When to leave ?’. By ‘follow Up’ what i mean is perception of other investors regarding that particular program, Newsletters issued by the concerned admin, comments in the forums, new promotional measures being undertaken etcetra.
Another important useful point may be the referral commission reports, to get an idea of the new deposits being made in a particular program.
Announcement of new high return plans, bizarre promotional plans should be dealt with caution.
4. As we have mentioned in our blog many a times, probably it is much more prudent to use payment processors like AlertPay particularly for short term programs, where at least the investors can file a dispute. .
5. Probably,it is much more rational to decide your volume of investment beforehand,that is the amount you decide to invest in HYIPs for a month. And make a point to yourself not to cross that limit. [This holds true for all high yield investment programs]
6. Personally,we prefer to divide the amount to be invested into two parts,the larger share for the long term programs,and the smaller portion for the short term programs.Well this should be adjusted according to your needs and preferences.
7. Although we are all looking for a high profit here,but there is still a need for being a little level-headed.Do not be too greedy.
8. Diversification of portfolio: Over the course of our journey through the HYIP world,we have came across several HYIP investors,who tend to develop a fondness and faith for a particular program,and tend to deposit their entire volume of investment,into that particular program,resulting in a massive loss.In our opinion,investing your total volume of investment in a particular HYIP,is absolutely contra-indicated.Much safer approach is to divide the decided volume of investment among several programs[May be 10 to 12],that is Diversification of your HYIP portfolio.The simple reason,we feel diversification is very important because.even if we look at the worst case scenario,where due to crisis in the HYIP industry a good half of the invested programs close,even in that critical situation,you will have at least 6 programs in hand,to compensate for the losses.
9. Amount to be invested in a particular HYIP: We believe, not more than 10%-20% of the pre-decided total volume of investment,should be deposited in any particular program.
That is probably all about the basic points that should be remembered before investing in high yield investment programs.
Hopefully, tomorrow will be brighter day. Probably i will never have to reply to so many mails of worried investors for a scam program, that we even did not join.
thanks Hyiping
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