One of the key errors investors make when putting money into a high yield program is not understanding the program itself and this leads to a loss.
There are three strategies an investor should be aware of in their daily dealings to get a good return from investments:
1. Always research before an investment.
2. Diversify your investments – never put everything into just one program.
3. Get your original investment back within a short time-frame and take money out regularly.
Let’s examine these tips individually.
Always research before making an investment.
Before putting money into an high yield program, the first thing you should do is find out which investment programs are most reliable and can make the most money based on your original investment. Using the internet is an easy way to do this research, you can find information out by using Google.
A second option for your research is to use internet forums. There are many hyip forums out there to provide information about the good hyip programs and the good hyip script. Forums are online message boards where people with similar interests discuss relevant topics and so they are a great tool for researching investment programs. To find out popular opinion about various programs take a look in professional, well-known forums. Asking questions in such a forum is also possible. Of course, do not believe everything you read in a forum. Some people who answer your queries may not actually be interested in helping you but may just be trying to promote their own links to earn a commission. It is worth remembering that you should never limit your research to just one forum.
Another option for research is to use a monitoring website. There are a few things you should know in relation to these sites:
1) Don’t just use one site, examine a few.2) If you notice a paying status on a monitoring site it does not necessarily mean the HYIP is paying all the investors because HYIP administrators treat these sites quite well.3) Read as many investor ratings on possible programs as you can.
To guarantee a genuine chance at a good investment, always do research first.
Never depend on just one program.
HYIP generally come with great risk and an unstable investment area such as stock exchange, metal trading, sports betting or other volatile fields. Then there are high yield investment programs that are simply scams, not actually investments. Based on this it is easy to see that there is almost always a high risk involved in putting your money in a high yield investment program.
You will lose your well-deserved money if you do not control such risks as best you can. You cannot totally avoid risks but you can minimize them and manage the ones you are aware of. The best mechanism for this is to diversify your investments.
Diversifying means that your portfolio is spread over more than just one or two programs and so the risk attached to HYIP is minimized. In other words, follow the advice of this familiar saying: don’t put all your eggs into one basket.
Get your first return quickly and withdraw often.
A major problem with high yield investment programs is that you cannot accurately predict the possible length of any specific HYIP. So it is imperative that you find a way to keep your investments as safe as you can. Using various compounding options is one possible way to do this.
Let’s examine what this means:
For example if you invest $1,000 into a high yield investment program that offers 30% monthly interest and comes with 100% compounding, there is a chance that that $1,000 invested for 1 year at 30% interest per month could grow to almost $23,300. There is also a chance, however, that the HYIP could go out of business within a few months. If that were to happen your hard-earned money would be lost. You can see based on this why you should have a technique to implement compounding in high yield investment programs.
It is advisable that you get your initial investment returned as soon as possible, e.g. keep compounding at 0% until your original investment is given back. After this you could keep the compounding to your shares while taking out half of the profit by limiting the compounding to 50%. Why 50%, you may wonder? This is simply a recommendation based on observations of high yield investment programs, rather than a set rule. You do not have to stick to this, use your own judgement and watch out for warning signs. If you spot something worrying in any HYIP continue setting the compounding option to 0% so you can withdraw your money.