5 tips for investing in high-yield projects
Recently, I began to receive a lot of questions. Reading them, I began to realize that some of my readers do not understand basic things about investing. Under the influence of these questions, I decided to write this article, which, I hope, will open my eyes to someone.
It is important to understand the following thing: investing in HYIPs (like most other types of investing) is simply a redistribution of money. Indeed, when investing in HYIPs (as well as PAMM accounts, Forex, precious metals, etc.) you do not produce or create anything, which means that there is no place for money to appear here.
Thus, the system is closed and, if you have more money, it means that somewhere there is less. And it might seem that in order to be in the black, you need to be successful at least 50% of investors, but this is not so.
Do not forget that the funds also go to pay for referral charges, and a significant part of the funds is taken away by the project administrator. It turns out that in order to successfully invest in HYIP projects, you need to enter 20-30% of the most “successful” investors. But, as you know, the strongest are lucky.
Why are the strongest lucky
I often hear from novice investors: ‘I tried to invest in 1/2/3 of the project, but no luck and I was in the red.’ But at the same time, I also know many investors who are constantly in the black. So maybe it’s not a matter of luck, but an approach to investing?
Of course, those people who think that they are investing in a real company are misinformed and cannot adequately assess their risks. Therefore, their investments are completely dependent on luck. But people who understand that they invest in HYIPs also make a number of mistakes, which also make them dependent on fortune.
The difference between successful and unsuccessful investors lies in knowledge and experience. And if you have to fill up the bumps yourself to gain experience, then the useful information is around freely available and you just need to take and study it.
5 tips for investing in hypes
I advise you to study information obtained from various sources. Below I will give some tips that I recommend you to listen.
On all blogs and forums, experienced investors do not stop talking to newbies about risk diversification. But, despite this, I can say (in my experience) that only a few have deposits in 10 or more projects (for more details, see the article on reducing risks through diversification here). At the same time, even fewer beginner investors use other investment instruments, except for hypes (see the article on 12 investment methods here).
Very often they ask me: “Is this a reliable project?”, “Can you invest here?”, “What do you think, how long will it work?”. Such questions are asked by people who want to choose one of the most reliable project and invest a large amount in it. But I can not answer these questions. In addition, even the project administrator can not know for sure how long his brainchild will last (unless, of course, he decided to arrange a “quickie”).
In order to clear your head of these issues, you do not need to focus on one project. Break your portfolio into several parts and invest in several promising projects (15 relevant projects). So you will reduce the risks, and even if some of the HYIPs stop paying, the rest will provide you with income and the preservation of your money.
2. Older does not mean better
Again, often when they ask me questions about a project or recommend something, they give an argument: ‘He has been paying and working for 1/2/3 of the year.’ For some reason, many are convinced that the older the hype, the more reliable it is.
I think the fact is that these people are afraid that they will be thrown and simply will not translate the promised payment. Although you need to be afraid of another – scam. After all, no sane admin will throw their depositors ahead of time and will not spoil the reputation of the project, while it can still bring him profit.
If the term of a real company can really be regarded as an indicator of reliability, then with the hype the situation is quite the opposite. The older the project, the greater the likelihood that it will soon become chipped. Ideally, you need to enter into long-term highs in 1-3 months of their work.
3. Choose projects that care about your reputation
As I said above, it is not profitable for such hyps to throw 1 person, who will then ruin their reputation. But reputation can only be damaged by serious projects. Therefore, when choosing them, pay attention that they are represented on the largest investment forums and blogs.
Forums and blogs are used by hypes for PR and attracting investors. But these tools can play against hype if its administrator decides to cheat.
On the forums you can post evidence of project fraud. This will make him an anti-PR. In addition, the forum moderator may mark this project as fraudulent, which will greatly affect its popularity.
4. There is no plus without minuses
I am convinced that most novice investors are not able to competently manage risks, including because they have never lost their deposit.
So athletes begin to pay special attention to the warm-up only after a serious injury. And the ‘dashing people’ who like to drive often begin to comply with the speed limit after the first accident. A similar picture is happening with investors.
After several failures, negative experience will restrain the investor and protect him from increased risks. Mistakes are the best experience.
5. Learn, study and study again
Of course, the most effective way is to learn from your mistakes. But still it is too painful. To avoid this, it is better to learn from the mistakes of others and get the maximum amount of information on investing from various sources. Do not forget that knowledge is power.
Read more about investment blogs and forums. Stay tuned for the latest hype industry news. Connect with more experienced investors.
One of the investor’s most evil enemies is emotions. They prevent you from making more profits and increase your risks. Therefore, do not be greedy, be cool, study, do not give up and you will find success in investing.