Tumblelog by Soup.io
Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.

January 30 2014


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.


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


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!