Maximum of HYIP is a Sign of Weakness?

Updated: 11/23/2005 15:47
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maximum of program sign of weakness
Learn about the main problems of HYIPs and their difference to real trading activity. The tips to define risky offers and avoid them.
Among other characteristics, the program has a characteristic that in fact rarely brings interest from an investor. Because this figure rarely plays an important role - few people agree to invest in a program with the amount more that four zeros. But like everything concerning the program, it should give to an experienced investor priceless information because it tells a lot. What exactly - we'll try to analyze in our article.

First of all, please answer a main question - why does the administration need money at all? It needs money to make profit more that it does now. That is, because a trader makes a profit not in money but in percentage, the amount from which the trader gets a percentage should be INCREASED. To the maximum.

If an investor makes 10% a week, there is a big difference whether he makes it out of 10,000 or 100,000. It turns out that if he takes 5% of the amount, his earning is growing proportionate to the amount which the trader works with. I suppose this axiom is clear to every investor.

At that you can notice that the risk of losses is increasing as well. But anyway when you work at the market like that you should always strive upwards. Because if you're not a professional, you'll lose with any amount, and if you're a profi you better take a bigger sum in order to lead a game on a serious level.

The matters stand in the other way with internet and HYIP. Firstly, there is a lot of deceit. Secondly, there is little trust here (it comes out of the first point). Thirdly, there is little publicity. I mean that all Internet transaction, a person to whom you give money, etc, all that stays in the shadow and can be revealed by the malefactors and used with bad intentions. The conclusion is that caution doesn't hamper.

As a logical result, the programs have a limiter (actually they had it from the very beginning). It helps to prevent some difficulties. From one hand, it seems that the program that needs more money should not limit its investors. It occurs that the program won't be able to pay such a percentage. I.e. it won't be able to pay 10 out of 10,000, and if the sum like that is invested, nobody will receive anything. I mean ponzi. In fact, it's right. To promice 40% out of 100,000 a day is rather silly and self-assertive. If you don't want to lose, better avoid such programs. At least, try to clear out why that is with its percent? Are there any limits?

From the other hand, the programs proposing a well-grounded percentage and really exist at the market are not cunning when they say they don't have any maximum. Their main aim is to get as much as possible turnover means. But often such programs close becoming private. It should happen, as sooner or later but 'maximum' comes. These are thoughts from one hand.

Thoughts from the other hand are the following: one should understand that the Internet differs from the real life. To transmit $100,000 to somebody here is not carrying a bag across the road. It's rather dangerous and very often ??¦ not necessary. Because it's better to go to the bank with such a sum and to make a legal and protected money order. But even not paying attention to the details, it's responsible. And obviously the Internet is not ready for operations of large scale. And limits of exchange services can bring many problems.

In addition to that, the sum affects the guarantees. If the program offers the maximum of $300 it should be obliged to pay its percentage for ages. :) There are such programs, you know. Besides, the program can have a reserved fund to cover PARTIAL losses, which makes a lesser amount that with large deposits. In fact, if the trader cannot afford to work with such amounts, the situation is completely clear. But these are just guesses. Each time you should find out with the administration on a private basis.

There is another moment - you should pay attention at the maximum comparing it with the site quality, service work, etc. Because if for $50 you are said you can invest 200,000 in it, it looks affecting at least. Would you allow transporting a sum like that in a broken old car? Would you trust somebody to do it? Exactly.

Summing up I would like everyone who reads the article to think and work out his own estimating system, his own action program. In every separate case this system will allow you determine without error the best variant. In practice, you can ask questions with a lot of consideration and estimate the answer. It's very important for the successful job. And we're sure we give you a key. Reconsider your estimation again, pay attention to the insignificant details and you will be able to achieve success. We guarantee.

About the author

Lella Prior has been at HYIPNews for five years. She is an articulate, confident person who relishes challenges and working under pressure. Lella Prior has been taking much care about writing. The greatest strengths are the research, communication and writing skills Lella has. Thanks to the work at HYIPNews Lella Prior has an excellent opportunity to write good quality content.
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