What is More Risky - HYIP or Forex?

Updated: 01/18/2006 03:07
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The next concerning question, which appeared not so long ago, but attracted much attention, and interested us in turn. So what is more risky? And where is the edge between "earnings" and "gambling investing"? I will try to answer this question, without delaying it, basing on the investors' opinion and our own analysis, and I hope this result will satisfy you. :)

At first, I want to specify the notion of FOREX. Mentioning it here, we will mean all the whole of "more serious finance markets", as stocks, options, markets of precious metals, shares etc. In the mind of average investor all this is referred to the sphere where one may earn much, but one should also know much, so there is no significant difference between these notions, and we won't distinguish them.

We place our HYIP on one scale – a stormy ocean, as we call it, where investor is lack of one necessary thing to get a success – a beacon highlighting the way to success which is approximate. We all know what the beacon is – surely, HYIPNEWS.COM :) But no kidding. Surely, HYIP is a sphere of unclear investing, where the pledge of success is a knack, awareness, experience and some other elements, that will be discussed below.

HYIP outcome start from the mills and reach myrias, but hardly any person dare to exceed the sum of hundred, because internet is not prepared to these operations. But such information might just be hidden, who knows.

It is possible to start from enormous sums - $1! It is suspicious and unique, but this is it – a world of HYIP. Accordingly, the other thing that is frequently mentioned – anonymity and possibility to stay at home.

The other scale of risk weighing is FOREX. For instance, it is possible to work at this market having $200. There are more complicated variants, when one should have no less than $100 000, but we won't take them into account, in order compared values be close.

It is possible to work at home on this or other markets; everything may be lost due to technical problems, it is necessary to have knowledge and experience. It is possible to work almost always, and receive the income constantly. Of course, it is necessary to legalize, but if you are a talented person, you can make enough money and you will be anxiously accepted for employment by leading broker companies. :)

So, in order not to go in details, let us compare risks. I just wanted to point out the elements to make the people that do not constantly live here, have a right image. If you are an experienced person, you need to read the last passage. Here is our conclusion.

Various technical bugs make the equal risk here. Both systems - just Internet – or a trading platform are just a hand-made tool on a level of their technical perfection. That's why it is vulnerable and predictably unreliable. Things happen. The same concerns banking systems, so it isn't worthy to go in details. We won't compare the scale of risk in general. What do we mean?

In principle, the risk rate is similar to probability theory. If probability of getting into scam will be scaled against probability of sudden rate of exchange changing, both of them will be equal to unpredictability. And we will receive absolutely equal extent of probability of losing the money. This is the main conclusion, but there is something more.

Those who read the article since the beginning have probably understood that risk meant in the main question (what's more risky) is the rate of this unpredictability. So, the rate of unpredictability in various spheres – FOREX and HYIP. And what is this rate?

It is different.

MOREOVER, IT HAS DIFFERENT NATURE. If unpredictability itself is something that is hard to measure, and nobody could do it, here you will get more important and accurate notion, that will put an end point in your hesitations. This notion will make clear, what is more risky.

With fully equal rate of risk (or display of unpredictability) FOREX and HYIP have a significant difference in the essence of unpredictability. Each investor may find his own answer to the question of what is more risky in this difference.

What is more risky – drive a car or a motorbike? Some will say that cars, some will say that motorbikes, for all that the motorbikes are the most dangerous mean of transport in the world. you should know that math gives a clear answer – walking on foot is more dangerous! The same refers to the planes – is it dangerous, how do you think? Planes are the most secure mean of transport. It is more secure than the car, you might drive each day.

Now let us speak about the difference that we promised to be the answer to your questions. Whom do you play in HYIP with? Not with the case, but with another person, who tries to cheat you. He tries to say some nonsense about investments, send you the letters and steal your money, if a small amount of honest programs is not taken into account. So here unpredictability… yes, depends upon another person.

The situation is contrary with the FOREX. There are set rules, technical analysis, precise counts and … a chance. If you lost, the reason of loss in 90% of cases with FOREX will be the lack of knowledge, and 10% will be a chance.

In HYIP your knowledge, experience, knack etc is just 10%. The rest depends on knowledge, experience, knack and honesty of those who you work with. That's why the rate of risk depends on the sphere of destiny, karma, and other things like that. That's why FOREX is so complex, unavailable, and seeming risky for us, because in FOREX you need to know thousand times more (thousand) than in HYIP, to make the rate of risk equal.

That's why each investor in this or that case should understand where he is aimed at and what he wants to get. What is more possible for him. What he has – brain or fortune in greater scale, ability to learn or ability to guess. And when you understand this for you, you may say precisely what is more risky for you – taking part in FOREX in investing in HYIP. The main thing is as follows: do not be mistaken.:)


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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