HYIP Investment Strategies
Many of HYIP investors plan their own strategies by their experience. Experience makes them know the do's and don'ts of HYIP. Once people get well versed to play in the risky yet lucrative arena, they start multiplying their resources. While there can hardly be any universal strategy for all cases, there are certainly quite a few patterns to be followed. The preliminary step one has to take before investing is to identify the fallacious programs and get rid of them. Then the nature of the program is to be analyzed and then the investor should act accordingly. A few points or strategies worth adopting are listed below.
Frequency of Payouts
Key point to note is the frequency of payouts. Check whether your interest payouts are made on a daily, weekly or monthly basis. If they are made daily, you have got a better chance to have a lucrative sum. Your profit increases day by day with the existence of the program. Don't be in a misconception that a program is more stable if it is paying monthly. Many programs which payout monthly gets doomed within a couple of months and there are archetype programs which makes handful of clams within short durations, to be precise, in few weeks. As far as the influx of new funds is there, the interest is being paid. When it becomes extinct, the program closes and your interests as well.
Program Duration
There is a formula that helps to determine the approximate lifetime of a program.
Lifetime of a Program= [(SD + SH + KR) * (NO + NF + WD + GAR) * (NKI + SKW + SKR) *365] / [((KI / SV) * (KO + RT + 1) * (KS + STR)*100000)]
Where
- SD -- approximate cost of design;
- SH -- cost of hosting;
- KR -- advertisement expenses;
- NKI -- presence of contact information;
- SKW -- compliance of the indicated contact information with the information given by 'whois' service;
- SKR -- compliance of the indicated contact information with the real addresses and phone numbers;
- NF -- presence of forum, quality of its development;
- KO -- number of mistakes in web-sites content;
- RT -- deviations in text (if the content is stolen with different sites or written without giving any consideration, the text will have incompliance);
- KI -- dynamics of growth of investors number during the first week of projects existence;
- SV -- sums of investments;
- WD -- information on business activity the program gets incomes from; subjective evaluation of data adequacy;
- GAR -- presence of guarantees;
- KS -- number of persons engaged in projects maintenance and support;
- STR -- place of projects accommodation;
- NO -- presence of office.
Program duration or age is also a factor that one needs to focus on in order to make the investments fruitful. The situation gets more complicated because even the trustworthy projects fail sometimes. It happens, for example, when program leaders did not manage to promote their program right or played fair on the currency market risking all their funds.
Profit Rates
Investor will incur a huge loss if they are too greedy. Even if you regularly get the program's earnings during several months it is not the reason to mortgage your property or take a credit under unbearable interest. You may find yourself with nothing if you spend your money recklessly. A program which does well today might get closed tomorrow. The well doing of a program is always uncertain. Also, it is a common opinion that, any program which offers above 2% a day would vanish within a matter of days.
One more point worth taking into account is the interest rate being either fixed or variable. Through many years of study, it has been made clear that, programs offering variable interests are more likely to be involved in some actual trading than the ones with fixed interest rates.
Type of Account
Some program facilitates their clients by providing internal accounts. The client needs to submit a withdrawal request in order to get the money transferred to their e-currency account. Normally the case is different. The amount will be sent to the account directly without any internal accounts. The later one is better to choose because, you can identify whether the program actually pays or reports some bogus interests in your internal accounts.
Investment Demarcations
The most popular forms of fraudulence is Ponzi. It's a classical financial pyramid where the profit is generated mainly by attracting investments from new participants. Majority of programs have their minimum investment value as low as $1. Before investing, you must be aware of these kinds of programs which are available in abundance. You should use your sub conscious mind in order to think what such a program can do with such a minuscule investment from investors like you, regardless of number of people. Up to some moment it looks stable as the payments are provided with real money invested into the program by new members. However, the impression is false. At some point there comes the stagnation and new members stop joining the project and the pyramid breaks down. Programs involved in some real business do not accept deposits less than $50 (minimum). It is not that, investors should only invest in programs which requires huge some investments. But, moderate amount, say $100 per program will do.
Precautionary Measures
The following tips will help anyone who needs to invest safely and get an acceptable interest.
- Never invest more than you can afford to loose.
- Don't allow greediness to blind you.
- Check the originality of the program by visiting the site. Be more cautious if the site is free listed and/or copied from other sites.
- Before investing ensure that the program pays directly to your account, because, the programs which maintain internal accounts might report bogus details of your account in their site.
- Never trust HYIP that put fake info in 'whois' database. Invest in those who had passes the DD (Due Diligence) process.
Always have in mind that a program would be a potential scam unless or otherwise, you have a positive reason to support it. Be cautious in such a way that, you get profits from HYIP or else, HYIP will profit from you. Analysis of various risks involved before investing will definitely yield fruitful results.
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