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    What Are High Yield Investment Programs?





HYIPs are programs which pool together the funds with their members - hyip monitor



to take advantage of investment opportunities, like stock trading



and foreign currency (FOREX) trading amongst others. These HYIPs



attract funds from members (called "deposits" or "principal") by



promising high rates appealing payments, which explain why they



are termed "High Yield Investment Programs". Naturally, the greater



the promised interest rate, the higher the risk borne through the members.



This is due to the fact that HYIPs pay off their members through the



returns by themselves investments. Therefore, it is feasible for the



payouts to exceed the HYIP's own returns, specially when the rate



of great interest payment is high. Th if such a situation persistse



closure from the program would be inevitable and members will stand



to shed their principals.



Scams



A scam is really 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, whenever they



have NONE. Consequently, they will eventually exhaust money to



pay their members and the majority of them just disappear into cyberspace,



along with members' money. Therefore, we hope to



educate readers by offering our humble advices on minimizing the



potential for being cheated.



Ponzi Schemes



This is named after Charles Ponzi, an Italian who migrated to



america and became one of the greatest swindlers in



American history. His aliases include Charles Ponei, Charles P.



Bianchi, and Carlo. If you are 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 phrase "Ponzi Scheme" was coined. You need to be



mindful of the reality that some HYIPs are in fact pure Ponzi Schemes.



My Advice



1. Never join any HYIP that pays more than 3% interest daily as



it is actually difficult to pay for such a high payout regularly.



2. Always conduct a Due Diligence check on this program.



3. Pay attention to what fellow investors need to say about the program - hyip monitor




within the various hyip forums. Check if it has been paying its members.



4. Diversify your funds by making deposits in several reliable



programs. This reduces the potential risk of loss you might be bearing. Even when



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.



If they hav, see if the owners understand what these are talking about ande



a sound business strategy.



6. It is really not wise to join a program that utilizes poor language



on its website. if the program has thousands of dollars of deposits



they must be able to afford to spend a few hundred to employ a



professional publicist, or at least someone with a decent command



of English to instill confidence among investors.



7. Simply because this system is paying does not necessarily mean they will



still. Decide on your own how long more this program can



sustain and be it likely so that you can make a profit.



8. Always read the FAQs as well as the terms of payment carefully.



You may discover some terms which may place you in a really unfavourable



position.



9. Invest only what you are actually prepared to lose. Expect the worst



but hope to get the best. Be conservative when calculating your profits.



Conduct a scenario analysis. This can place you in the right frame of



mind when deciding the total amount to deposit with a program.



10. Usually do not compound your interest till you have earned your deposit



back. This reduces the probability of you losing money as some



programs do not survive for long, in particular those without sound



business plans.
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