Welcome Board Investors,
So you are an Investor and need to be more specific and more accurate on what you do & how you do. We are happy to see you here as you have realized at least now about the risk involved in HYIP.
On the whole the Risk Management in any industry have been classified in to two major types:
In case of HYIP Industry there is no room for Low Risk Management. All what we deal here are classified under the category "High Risk Management". Investors should follow certain rules & regulations in order to minimize the high risk that is involved in HYIP. This may be some of the senior investors already experienced but not many of them,
Rule 1: Beginner's Start
When ever you are in to a new program just give a beginners start. Do not involve with a large sum of money rather give a test drive of the program you are interested in. Observe the response and move for the next level with the satisfaction of the response you have obtained already that might have give a confidence about this program. Remember once again Only invest money which is affordable for you to loose and creates no financial shakes in your family.
Rule 2: Investment Criteria
The second & most important thing is about the setting up target and goal for invest criteria. Do not blindly invest money without any limitations or exemption. Just draw an investment criteria, for example: $100 for this month and $100+$10=$110 for the next month(already you might have earned some average profit 30% from the principle amount) rather to spend entire amount including interest payments, just take some percentage of about 20% for example from 30% of interest earning and reinvest. It is more good rather to be with empty hands when the program go to Not Paying status.
Rule 3: Diversification
Diversification yield to 75% of success factor in HYIP industry. "Putting all stuff in to a one big boat and let it sink faster rather divide and put it in number of big boats and let it reach the shore shortly"-this is what called diversification. Let me explain you with an example,
Man A & Man B have $100 in each of their hands,
Man A - Invest in one program that gives 1% daily for 30 days
Program pays him for 29 days and his interest payments will be $29 for principle $100 and goes not paying from the 30th day =$100-$29=$71.Therefore, Loss=$71
Man B - Split in to 10 equal shares and invest $10 in to each program
Let us assume that at least two programs being closed each month one after the other, his earnings for each month will be
At the end of month 1= $29+($0.80 on the 30th day by remaining 8 programs)=$29.50[with reference that 2 of the program turned scam at the end of 1st month and repeated for each month]
At the end of month 2= $23.20+($0.60 on 30th day by remaining 6 programs)=$23.80
At the end of month 3= $17.40+($0.40 on 30th day by remaining 4 programs)=$17.80
At the end of month 4= $11.60+($0.20 on 30th day by remaining 2 programs)=$11.80
At the end of month 5= $6(by 2 programs for 30 days) + $20 (Principle of $10 from 2 programs)=$26
Therefore,
For all five month(1+2+3+4+5) = $29.50+$23.80+$17.80+$11.80+$26 = $108. Hence, Loss=$0
We have calculated here the maximum probability of Loss & Profit but there may be a chance of undefined calculation that might overwhelm the current scenario.
Rule 4: Invest & Withdraw Mechanism
Never go for a higher ROI when you are risking a large sum of money. Get start with smaller & regular profits rather to expect big & receive nothing. Withdraw the interest as frequent as possible and do not compound unless you are sure about that particular program withstand capability in HYIP industry.
Rule 5: Program Motto & Website Security
Always make sure what is motto of the program or aim of the program with that of investor's money. An optimal program should be crystal clear in their aim and targeted reach of the invested money and manipulation of the same in order to pay its investors. Apart from this User information as a member of a certain program should encrypt proper security along with proper statement of Privacy & Terms Of Service. Website should be enabled proper Protection against hacking and other kind of third party malicious website attacks such as DDOS.
Good luck for all your endeavor in HYIP investments.
So you are an Investor and need to be more specific and more accurate on what you do & how you do. We are happy to see you here as you have realized at least now about the risk involved in HYIP.
On the whole the Risk Management in any industry have been classified in to two major types:
- Low Risk Management
- High Risk Management
In case of HYIP Industry there is no room for Low Risk Management. All what we deal here are classified under the category "High Risk Management". Investors should follow certain rules & regulations in order to minimize the high risk that is involved in HYIP. This may be some of the senior investors already experienced but not many of them,
Rule 1: Beginner's Start
When ever you are in to a new program just give a beginners start. Do not involve with a large sum of money rather give a test drive of the program you are interested in. Observe the response and move for the next level with the satisfaction of the response you have obtained already that might have give a confidence about this program. Remember once again Only invest money which is affordable for you to loose and creates no financial shakes in your family.
Rule 2: Investment Criteria
The second & most important thing is about the setting up target and goal for invest criteria. Do not blindly invest money without any limitations or exemption. Just draw an investment criteria, for example: $100 for this month and $100+$10=$110 for the next month(already you might have earned some average profit 30% from the principle amount) rather to spend entire amount including interest payments, just take some percentage of about 20% for example from 30% of interest earning and reinvest. It is more good rather to be with empty hands when the program go to Not Paying status.
Rule 3: Diversification
Diversification yield to 75% of success factor in HYIP industry. "Putting all stuff in to a one big boat and let it sink faster rather divide and put it in number of big boats and let it reach the shore shortly"-this is what called diversification. Let me explain you with an example,
Man A & Man B have $100 in each of their hands,
Man A - Invest in one program that gives 1% daily for 30 days
Program pays him for 29 days and his interest payments will be $29 for principle $100 and goes not paying from the 30th day =$100-$29=$71.Therefore, Loss=$71
Man B - Split in to 10 equal shares and invest $10 in to each program
Let us assume that at least two programs being closed each month one after the other, his earnings for each month will be
At the end of month 1= $29+($0.80 on the 30th day by remaining 8 programs)=$29.50[with reference that 2 of the program turned scam at the end of 1st month and repeated for each month]
At the end of month 2= $23.20+($0.60 on 30th day by remaining 6 programs)=$23.80
At the end of month 3= $17.40+($0.40 on 30th day by remaining 4 programs)=$17.80
At the end of month 4= $11.60+($0.20 on 30th day by remaining 2 programs)=$11.80
At the end of month 5= $6(by 2 programs for 30 days) + $20 (Principle of $10 from 2 programs)=$26
Therefore,
For all five month(1+2+3+4+5) = $29.50+$23.80+$17.80+$11.80+$26 = $108. Hence, Loss=$0
We have calculated here the maximum probability of Loss & Profit but there may be a chance of undefined calculation that might overwhelm the current scenario.
Rule 4: Invest & Withdraw Mechanism
Never go for a higher ROI when you are risking a large sum of money. Get start with smaller & regular profits rather to expect big & receive nothing. Withdraw the interest as frequent as possible and do not compound unless you are sure about that particular program withstand capability in HYIP industry.
Rule 5: Program Motto & Website Security
Always make sure what is motto of the program or aim of the program with that of investor's money. An optimal program should be crystal clear in their aim and targeted reach of the invested money and manipulation of the same in order to pay its investors. Apart from this User information as a member of a certain program should encrypt proper security along with proper statement of Privacy & Terms Of Service. Website should be enabled proper Protection against hacking and other kind of third party malicious website attacks such as DDOS.
Good luck for all your endeavor in HYIP investments.