Friday, February 03, 2006

Best HYIP - High Yield Investment Programs

HYIPs, or High Yield Investment Programs, like any other investment opportunity pay you a percentage (either constant or varying) of your investment. Most of the HYIPs pay certain daily or monthly interest, which can be withdrawn to a payment processor either every day, or once a month. The HYIP concept is very simple, HYIPs are the easiest passive income. You don't have to do anything, just invest some money and watch it grow. Every day or every month your e-gold account will be rewarded with the promised interest, which can be withdrawn or compounded.

HYIP programs usually use either automatic or semi-automatic payment scripts, that allow you to withdraw your interest at any time. It's also recommended to withdraw your interest frequently to minimize the risk. There are literally thousands and hundreds of million of dollars invested in HYIPs every year, and while most of newbie investors start their investing "career" with losses, more experienced HYIP traders are able even to make a living on HYIPs. To become a successful investor you need to learn a lot, read all the HYIP related articles, written by senior investors, visit forums and participate in HYIP discussions and, of course, invest.

Risks involved in HYIP Investing

HYIP Investment involves a great deal of risk. Investing in HYIPs you risk to lose your money every day - when a program closes it happens suddenly, at the moment when most investors don't expect it (though experienced HYIP traders usually know when they should take the money out the program, before it closes). If you've decided to invest in HYIPs, you should be ready for that kind of risk, but the risk here well worth the prize. You cannot expect to make any substantial return if you are not prepared to accept a certain amount of risk. Your gain is usually proportional to the risk - you can either earn very high daily interest with enormous amount of risk, or make the same interest but every month with a considerable risk level.

Estimating risk may be a difficult challenge mostly because finding the real information about the program is not easy, you can't completely trust anyone when dealing with HYIPs. But certain point should be considered, for example, new HYIPs present much higher risk than those that have already proven their long term intentions by at least a year of positive payout history. HYIP administrators should also explain how they intend to generate the quoted returns, unwillingness to disclose such information by the program owners doesn't add to the program's good reputation. Beware of any program that refuses to provide information about its investing strategy. When you know where the program is investing to gain high returns, you may use the knowledge to estimate potential risks by defining how real certain interest can be in the given market. For example a program trading at FOREX can hardly generate 5% daily, while 5-15% monthly can be achieved by an experienced trader with a reasonable amount of risk.
Another important factor in estimating a program's risk is an average lifetime of similar program. For expamle a program paying 3-4% daily, using a professional unique design and well advertised can last at least for several months, so it can still be safe to invest in it during its first or second month, but investing after the program has been online for over 3-4 months may be very dangerous. Nevertheless, programs paying around 1% daily may last for much longer time, even for several years.

Referral comissions and payment processors fees are also very important. Program paying very high referral comissions is not likely to run for a long time. All serious programs also have reasonable minimum investment thresholds (of around $50) and payment fees (up to 5%). Program website, which is updated frequently indicates a more professional attitude. Frequency of admin updates is usually proportional to the interest paid to members - programs paying high interest may provide their members updates several times a week, while others, paying lower returns may only update their members once a month.

Diversify to Minimize HYIP Risk

Maintaining a wide investment portfolio is the key to success in HYIP investments. You can never predict when a program will close and even the most solid HYIP programs were closed suddenly, when no one expected it. In HYIP arena there can be no program without risk, no stable investment can pay you so much, though there are more reliable programs and less reliable ones. The best strategy involves both of them. Choosing your investment portfolio is the most important stage of your investment strategy. Before you start spreading your money, stop and think about your strategy, try to answer this simple question: Are you willing to take risk and earn more or would you like to stick to more reliable programs, but earn less?

If you choose the last option, stick to programs paying near 1% daily or less. On the other hand, if risk is for you, invest in high percentage HYIPs too. The optimal strategy is to invest at least half of your money in few reliable program, with good payout history of at least a year and use the rest to get into every new and promising hyip, which can let you earn some money before it closes. The gold rule of managing a successful investment portfolio is simple: try to invest amount of money proportional to the programs credibility. If the HYIP seems solid to you (after you have done your own due diligence, of course) - make a serious investment, but if you don't have much confidence in the program you may just put in some money to see if you got paid, and if do - invest more