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January 30 2014

hyipinvestment

What Are High Yield Investment Programs?





HYIPs are programs which pool together the funds of the members - hyip



to take advantage of investment opportunities, like stock trading



and forex (FOREX) trading amongst others. These HYIPs



attract funds from members (known as "deposits" or "principal") by



promising high rates of interest payments, which explain why they



are termed "High Yield Investment Programs". Naturally, the greater



the promised rate of interest, the greater the risk borne by the members.



This is simply because that HYIPs pay off their members from your



returns by themselves investments. Therefore, it really is feasible for the



payouts to exceed the HYIP's own returns, especially when the speed



of interest payment is high. If such a situation persists, the



closure from the program will be inevitable and members will stand



to shed their principals.



Scams



A scam is a fraudulent business scheme and also this is rampant among



HYIPs. Some HYIP owners abuse the trust of their members by



misrepresenting for them regarding their investment strategy, when they



have NONE. Consequently, they are going to eventually run out of money to



pay their members and most of them just disappear into cyberspace,



in addition to members' hard earned cash. Therefore, we hope to



educate readers by offering our humble advices on minimizing the



chance of being cheated.



Ponzi Schemes



This really is named after Charles Ponzi, an Italian who migrated to



the United States and became one of the greatest swindlers in



American history. His aliases include Charles Ponei, Charles P.



Bianchi, and Carlo. By paying off initial investors with money



obtained from the later investors, Charles Ponzi were able to



swindle $15 million from 40,000 investors from 1919 to 1920.



This is how the term "Ponzi Scheme" was coined. You ought to be



aware of the truth that some HYIPs are in fact pure Ponzi Schemes.



My Advice



1. Never join any HYIP that pays a lot more than 3% interest daily as



it really is next to impossible to purchase this type of high payout on a regular basis.



2. Always conduct a Homework review this program.



3. Pay attention to what fellow investors must say about the program



within the various hyip forums. Check if it really has been paying its members.



4. By making deposits in several reliabl, diversify your fundse



programs. This reduces the potential risk of loss you are bearing. Even though



one program shuts down, you still need other programs as back-ups



for you to recoup your losses from.



5. Determine the coherency of the program's investment strategy.



See if the owners know what they are talking about and if they have they hav, see if the owners really know what they are talking about ande



a solid strategic business plan.



6. It is far from preferable to enroll in a program that uses poor language



on its website. If the program has thousands of dollars of deposits,



they will be able to afford to spend a couple of hundred to employ a



professional publicist, or at least someone with a decent command



of English to instill confidence among investors.



7. Just because the program is paying does not mean they will likely



carry on and. Decide on your own how much time more this system can



sustain and whether it is likely for you to produce a profit.



8. Always read the FAQs as well as the terms of payment carefully.



You could discover some terms which may put you in a really unfavourable



position.



9. Invest only what you really are willing to lose. Expect the worst



but hope to find the best. Be conservative when calculating your profits.



Perform a scenario analysis. This can place you in the proper frame of



mind when deciding the total amount to deposit with a program.



10. Tend not to compound your interest till you have earned your deposit



back. This reduces the chance of you losing money as some



programs usually do not survive for too long, in particular those without sound



business plans. - hyip

Don't be the product, buy the product!

Schweinderl