Back To Basics - Principles For HYIP Investments
Despite most regular MNO readers being quite a smart and savvy bunch (give yourselves a round of applause guys!) the awareness level of the players (investors) in the wider HYIP industry is generally very low. This became especially clear after some recent program closures when I was inundated with requests from people who had absolutely no idea why the program was gone and what they had to do. What I want to achieve with this article to give you some basic but yet extremely important points about investing in HYIPs that hopefully will help you minimize your losses and win more than you lose overall. So let’s get started.
1) Never invest what you can't afford to lose in HYIPs.
It may sound too obvious to repeat it over and over again. But when I see that a man is collecting money intended to treat his mother in hospital, pay his rent, or finance his son’s future tuition I’m actually getting scared. That is NOT the point of joining HYI programs! You should only invest what you can afford to lose and not sell your car or skip the rent in order to play. This is a very important issue that has to be addressed here as it might sound very tempting to solve all your financial issues by investing in HYIPs and getting some fast and easy money. In fact it’s a very hard target to achieve and unless you are extremely lucky you have to slowly build your own strategy to play with success. But even then you can’t be successful all the time and after success, failure might come so be ready for it. And don’t be deceived by greed telling you that with HYIPs you can build a fortune. So play them carefully and only with what you can afford to lose.
2) Once you invest in HYIPs consider your money gone.
When you invest in an HYI program your money is no longer in your control. Every cent you get from now on is 100% down to the decision of the admin. You “trusted” your money to him by investing in his program and might never see it again. Of course, if you get lucky you will be in profit but these profits should be treated like a gambling win and not like the return of your deposit from a bank with interest.
As I said before the HYIP industry is a gamble with no real investments and it will be just psychologically better for your peace of mind if you only count your money when it’s in your pocket and not someone else’s (or even payment processor account). That way you will save yourself from huge disappointments and the stress that goes with them.
3) HYIPs can end anytime and past results are no guarantee of future performance.
As we see time and time again, any program can collapse at any time, even if things seem to be going so well. By expecting the inevitable to happen (all HYIPs will end some day) you are always on guard and don’t allow yourself be too confident about any program which you believe can last for a while. Remember that nobody can tell for how long a program can last and even the admin himself sometimes is not aware of that. So please never rely on the past performance to evaluate the program’s ability to pay you for the same amount of time or even longer and be careful with your investment decisions!
4) Don’t treat HYIPs as real investment ventures.
This is one of the main principles which I firmly believe in after being involved in this industry as a successful investor, blogger, and monitor for several years and which is extremely important for your success. This is already discussed thoroughly many times on MNO and yet still many investors make the mistake and treat HYIPs as businesses. This can only be to the advantage of HYIP admins which are trying their best to appeal to people’s greed and to make you deposit more and more.
5) Always diversify your investments in HYIPs for safety reasons.
This is also one of the main principles often forgotten by many investors. Of course for those who prefer to risk their entire capital and prefer to get all or nothing there is nothing wrong with putting all their eggs in one basket (all their money in one HYIP) in order to try their luck. Such risks though are not often rewarded and even if you get lucky the first and second time you might lose all your capital the next time (like I said before HYIPs are highly unpredictable). So luck will be more on your side if you be more careful and resourceful by assigning how much money from your starting capital you’re going to invest in various programs. At least if some collapse you are protected from heavy losses by your income from others. I believe that experience and knowledge is power and can be used in any aspect of life, not just HYIPs. So always diversify investments!
6) Never ever get emotionally attached to a program which can scam anytime.
Ultimately it’s the finishing goal of any experienced HYIP admin to pay you for some time and slowly gain your trust and get you emotionally attached to his program. There are many psychological tricks and I saw them all so many times in the past. They will offer you any bonuses, debit cards, presents which would be otherwise treated as warning signs among the more neutral observers. Those who are emotionally attached are usually those who are very badly hurt (financially and mentally) when this program suddenly collapses or when you feel that the admin betrayed your trust.
I really hope that this article will help you see the industry from a different angle and maybe somehow change your strategy and your attitude towards HYIPs. I’m looking forward to hearing your own comments and thoughts on the subject either on my Shoutbox or to my contact form. Thank you for your attention and as always feel free to put forward your suggestions!