Of course, diversification advice recommending it as the primary method of providing security is based upon a wealth of experience and various mistakes. So we are sure that diversification is really a pledge of your success. But we also may say for sure that it may bring a lot of trouble if you use it wrong.
Diversification as it is understood at HYIP market means that you invest your funds in many projects at once, thus â€œspreadingâ€ the threat of losing your money. If you have $100 you invest it to different 10 projects giving $10 each instead of investing the whole sum into 1 project.
Unfortunately, this oracle has one drawback. It is as follows: you increase your risks while diversifying your funds. If you invest into 10 projects you make your risk 10 times higher. Of course, this shouldnâ€™t be treated as a pure math, you cannot just multiple. But here is an important succession here, which cannot be neglected.
If you hope that just spreading your funds will decrease risks, you are mistaken. Risk wonâ€™t be decreased, it will grow, because a few programs from these ten you invested in will SURELY become scam, as 10 program are not a program. But this risk will be DIFFERENT.
And this is the sense of diversification method. When you invest into a few programs, you do not lose THE WHOLE sum. And this is the pledge of diversification and â€œperfectâ€ investment strategy. Having secured your rear, you may move forward, even if one of those you gave your funds to falls down.
But you should remember about interests. And this point is important for proving our opinion that diversification is just another problem solution and it should be understood while implementing it.
While diversifying your funds, you not only keep them safe from unnecessary problems, providing yourself a chance even in case some of those programs are SCAM at the same time, you spread your profit as well, and having lost $10 of $100, you would receive only $0.9 (is you receive 1% daily). Accordingly, to compensate $10 you lost you should not only refund your initial deposit but also add $10, which is more difficult under such circumstances.
Accordingly, you receive the rest of your funds even after loss, but thus you donâ€™t receive universality, and we are sure that investors should mind it. Thus, investing $100 in a good program once you may hit the mark and receive a good profit. But do not let diversification rule drive you limitlessly. As you see, this is not the best alternative. We hope, you understand it as well.
In each separate case one may use an unusual diversification method, and the first line offering diversification in any advice doesnâ€™t necessary mean that this is your clue. Even if this solution has been dictated by experience.
Youâ€™d better drive your efforts to the search of the only one, and restrict you in your diversification. Otherwise you may push yourself to the limits (investing into one program, or, on the contrary, when you cannot control funds coverage), and risk will be determined by an individual risk of your each separate deposit. Be clever.