The Tactics of Internet Investment

Updated: 05/26/2007 19:04
Hyip Monitor
(Or the confessions of the HYIP investor) Vol.2
I continue the confessions of the HYIP investor who learn to be successful in HYIP niche from his own mistakes and financial losses. The first part I told about his start of HYIP career, conclusions to invest serious money and the tactics which he chose for his online investments to get high return.

Proposed conditions have a central position in HYIP. The practice showed that the high yield projects which propose more than 25% per month are financial pyramids as a rule. It is also possible to earn from them but there are nuances which have to be considered. It is possible to make small investments into the projects, which propose more than 50%, for several weeks.

It is necessary to focus attention on the minimum period of the return on investment. If the investment company proposes 10-20% per month, it is possible to invest for three months because the interests are actually paid out even if the company is a pyramid. But if the fund proposes 50% per month and the minimum period of an investment is, for example 40 days, it means that the fund will work most likely 40 days.

The next step in HYIP is the order of the interests' withdrawal. It is advisable to take them out more frequently. If the interests are high and you can take them out seldom, it means that it is better when you forget this HYIP because there are very many chances to lose your money.

According to the investor, the most important thing is guarantees. The fund which proposes to make serious yields (but it also means to invest serious money) must give guarantees. The information about the HYIP owner is one of the most important guarantees. Moreover, it must be possible to verify this information. Investors may not disregard this possibility even if the information is present, for example you can ask a detective to verify data.

Also the reality of the fund's activity is important to investors. If the fund makes favorable impression according to all points said above, you should determine whether the HYIP fund works with used money or it is a financial pyramid.

A basic sign of the pyramid is daily payments of interests. If you invested $1000 into one investment fund yesterday and took $10 already out today, the fund could not earn this money within such a short time. But the working fund uses money for increasing the profit and not for starting to return money the following day.

The next step is fixed profitability rate from the currency market and the stock exchange operations. On the Forex and the securities market the value of profit depends on the market motion. The market motion is subjected to the influence of very many factors, namely political, economic, military, energy.

Furthermore, it is not possible to predict the value of these motions; therefore the investment fund which makes these forms of activity can guarantee only the pay-off of all obligations to investors in case of an unsuccessful transaction. This is a pyramid if the fund proclaims this activity and pays out the fixed interests more than 10-12% per month.

The second basic sign of the pyramid is absence of checked information confirming the declared activity. Some specialists consider a referral program as the sign of a pyramid. But as the investor points out that this view is incorrect. He considers the referral program as a part of the fund's advertising policy and referral payments are the pay of advertising agents.

Depending on the fact if the fund is a pyramid, we determine the tactics of work with it, in other words if we work with the money really, you must study the agreement and meet the support service. And forward to the dividends!

But if the fund is a well disguised and qualitatively made pyramid, there is a fundamental rule, namely enter and leaving the high yield project in the first rows. But as the investor mentions, this rule relates only to the qualitative pyramids and the other ones must be ignored. It is advisable to divide a large into several averages because it is more reliable and there is an additional possibility to earn on the referrals.

As a rule, it is too late to invest into the funds-pyramids when they work already 3-4 months though there are very favorable opinions about this project. Certainly, it is possible to obtain return from financial pyramids which pay actually out but also risk is enormous high.

This factor must be considered by the formation of your investment portfolio. The investor recommends dividing the portfolio into two parts: to invest the first part for 8-10% per month into the actually working fund and to divide the second part into three or four parts which you can invest into the fund with high interests that does not present any proof of its activity.

There is a great number of theoretical rules, strategies and methods how to be successful in Internet high yield investment but this article shows the practical experience of the investor who started as any person wishing to earn money online. But, dear readers, you have a great advantage: You know his mistakes already and can make money without losing!

About the author

Nicole Berger has over seven years experience writing and editing for online and print media. She has held various editor and associate editor positions in some of forefront independent media publications. A consistently dependable team player, I thrive in a high-pressure environment, enjoy the challenges of meeting deadlines and managing a team, and am comfortable researching, writing and editing on a wide range of topics.
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