INTERNET INVESTING
There are many options for capital investing. You may put it into a bank, buy stock of some well-known company or buy a piece of art or real estate. However, many potential private investors do not have enough money to make an effective investment: real estate, art and stock of leading corporations are not very easy to afford. Bank interests from moderate sums will be ridiculous.
What shall the private investor do? He/she is isolated from the big game, and small investments do not promise anything but a headache and time waste. Here come HYIP (High Yield Income Programs) to help the prospective investor. Using special Internet services you invest a certain sum of money (entrance limit are very low as a rule) then during the determined term you get an interest from your investment. The interest is paid every day or every week, or monthly. The rates vary from 0.3% up to 3% per day. The investor gets back his/her investment very quickly and then he/she starts getting the pure profit.
Are HYIP profitable? Yes, sure. The private investor has almost no possibility to effectively invest small amount of money and regularly get some good profit out of it. A private person not having enough financial means, reputation, serious business partners, working schemes and contacts is almost completely isolated from serious investment activity and the big game on the stock exchange. By taking part in HYIP the private investor gets a kind of an agent who has the knowledge and possibilities the investor lacks and who makes the investment instead of the private investor.
Is HYIP participation risky? Yes, of course. As any other investment activity the High Yield Income Programs are risky venture. No one will ever guarantee that the money put by HYIP organizers into some project will actually bring the maximum profit. However, the qualified specialists developing the high-yield schemes always reinsure themselves. The part of the means is spent on financial instruments of maximum security that guarantees the investors some minimal safety of their investments.
How the profit is formed?
Many prospective participants of high yield income projects think about where the organizers take such big money that they can regularly pay very serious interests. Incomes, surely, do not come from nothing. In serious HYIP experiences managers, professionals developing and realizing many high income projects work over the effective investment schemes.
So the main sources of incomes in High Yield Income Programs are the following:
Investments in FOREX market.
Trading of stock of different companies on international stock exchanges.
Participation in different commercial sweepstakes.
Investing into high-yield business
Import and export of scarce goods.
That means, actually by accumulating money of the participants, the programs leaders use them as their floating assets. Then by investing in high-yield projects and actively using the off-shore status they create the profit not subject to taxation. As the result there are sums enough to support the HYIP activity and to pay charges to the investors, as well as to further expansion of the program.
People distant from complex economic processes may think it is unreal that over a month the amount of the investment may double or even triple. An experienced investor always may predict which investment will bring profit and which will not. Having wide knowledge and serious experience he/she is able to easily make profit from price fluctuations to some goods.
Many investors have made huge fortunes on the currencies rate fluctuations. Trader who knows the specifics of currency market over just few hours may double the invested capital. For example, trader has 100$ and he/she is going to speculate for Euro fall and long for Dollar. Trader takes 9900$ no-interest credit and sales 10000. Then he/she buys Euro at the rate 0.9755 and in a few hours resells it at the rate 0.9845. Then he/she pays off 9900 to the broker and the pure profit of the investor is 90$. So the deposit increases 90% less than in 24 hours.
Surely, for an inexperienced investor an attempt to play for currency rates fluctuations may result in financial crash. Instead of prospected profit he/she will bear significant damage. Actually, the role of all high yield income programs is to create some initial fund of money from investors contributions and then using various economic schemes to distribute it among profitable projects. Within HYIP there is no industrial processes, projects managers do not just manage your capital but help you to multiply it. HYIP is an agent between a private investor who does not have possibilities and knowledge to effectively play on the market fluctuations and high yield economic formations.
Of course, besides for the currency rate play there are many other effective methods to invest money, for example, buying securities of organizations which work well in the developing countries. Such financial instruments are risky but the risk is compensated by their high profitability. Besides the HYIP leaders prefer to reinsure and place the part of the invested funds into securities of the highly reliable companies.
Good HYIP will never lie to its clients because high yield income programs are an ideal example of mutually beneficial cooperation. By effective management of the investors capital the program organizers get enough income to pay interests to the investors and have profit on their own.
The rate of capital circulation, for example, on FOREX significantly increases the circulation rate during regular business activity. In 24 hours one can perform several high-yield transactions providing every-day or every-week payments.
However, you should not forget that the majority of projects organizers prefer keep information about their income sources secret, fearing unfair competition. That is why often the high yield income programs are not absolutely transparent. However, it does not influence the regularity of payment and programs trustworthiness. High Yield Income Programs leaders knowledge well the fact that the effectiveness of mutually beneficially cooperation are not likely to risk their investors trust.
Continuing Your Investment Campaign
One more important rule for private investor says: do not invest the earned capitals into the same program. Every day for the project is a new step to its inevitable closure. As we have said before even the most reliable projects will sooner or later end their activity. When a resource of the high yield income programs exhausts, it gets closed. Constant expansion of the project is impossible. It is an axiom. That is why try to invest the earned money as effectively as possible.
As a rule, disregard of this rule is the reason for financial loses. Many private investors get greedy and once they receive some incomes they invest it again and again. And they do it till the project spends all its capabilities. As the result the investor loses; it would be good if he manages to turn his initial investment back. Distributing the incomes among new programs is the most effective way to minimize the risk.
Study the new programs, hold their detailed analysis, select the most prospective and honest ones and then invest the parts of your gained profits into them. In case your initial program closes you will always have the investments in other programs and you will be able to turn the invested money back and gain profit. The investors desire to follow the old path and receive the profit in one project can be understood but it does not correspond with the economic reality. The project that sooner or later will get closed inevitably comes to an end someday. You have to do everything possible that the termination of the program brings you minimum damage.
There is no sense to turn to HYIP to those private investors who wish to get rich at no risk. High yield incomes are always connected with high risk. High yield income programs participants cannot avoid the risk, it is impossible. They shall try at their best to minimize the risk. You can minimize it only by investing your capitals into different projects.
Invest into different projects and distribute the gained profits among new programs, even when you start working with this HYIP. There is no sense for the beginners to risk all their capitals. Many programs have a fixed entrance minimum limited up to 1$, 10$ or 100$. At first understand the functioning of the high yield income programs by playing small. And only when you feel yourself comfortable in the HYIP world and learn how to invest and reinvest money right, you can start playing big.
Remember, nothing venture nothing have. However, do not forget that if you risk recklessly you can be left with nothing. Follow all private investors rules and youll succeed. A reasonable risk is the foundation for survival in the changeable and unpredictable High Yield Income Programs universe.
resources: hyip.com
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