High Return Investment Tips for Beginners
high return investments Traditionally economic community has referred to this name to those types of investments that returned a superior interest to that provided by traditional instruments, such as stocks, bonds or fixed term accounts.
These specials were offered by brokers or firms exclusive private banking institutions to wealthy clients, seeking to obtain a higher return for their capital through aggressive investment strategies and sometimes risky. The best example of this type of investment were called hedge funds, often made in tax havens. Participate in this select club generally required the payment of at least a million dollars.
However , today the term HYIP has evolved and is used almost exclusively to describe a type of "investment"-using this word with caution, that while the same objective as those mentioned above, ie obtain a high performance, actually have very little to do with these.
The new batch of "investment programs high yield" leverage Internet technology and deregulation that exists in certain tax havens or offshore jurisdictions, to market a product type which in some respects has more to do with a game of chance with an investment. It is this phenomenon that to dedicate this article.
What do you call then one HYIP?
This is an investment program offered exclusively through the Internet with the following features:
The investment management is opaque, the client does not know what he invests his capital beyond what is stated on the website of the program.
The receipts and payments are made mainly through calls digital electronic coins or currency. Some of the most popular are Liberty Reserve, Perfect Money or Strict Pay.
Investment is not offered by brokers or dealers in securities and overwhelmingly programs are licensed either financial or investment fund. While some of them are registered in tax havens actually operating outside the law and in a virtual environment multijurisdictional, very difficult to control.
What HYIP invests according to its promoters?
Most HYIP's promoters claim it is legitimate programs that get these high yields due to aggressive investment strategies and very profitable. Mainly say invest in the following sectors or products:
FOREX or Foreign Exchange market.
Commodities and natural resources (oil, gas, precious metals).
Scarce products (certain foods, luxury items, etc .. ).
Shares and participating interests and promising sectors of the economy (nanotechnology, biotechnology, etc .. ).
In general, most of the promoters and defenders of these programs suggest that their investment strategies are similar to hedge funds.
But what really lurks behind a HYIP? Is it really possible to get a continued performance above 1% per day (coinciding with lower performance programs) with investments in FOREX, commodities or products in short supply? Is unlikely.
Most of the foreign exchange market brokers argue that although in some cases these yields can reach, it is almost impossible to keep them for a continued time. How then can the HYIP's pay such high interest rates? They use a type of pyramid structure, known as a Ponzi scheme, referring to the Italian Carlo Ponzi who became famous for ripping off a number of their fellow citizens with this system at the beginning of the last century.
In a Ponzi scheme, the earnings of older investors are paid with the capital deposited by the new ones entering the program. This works so far where there is a decrease in the flow of new investors. At this point the system collapses. In reality, however , the process rarely come to the end, because the developer of the program with the remaining money will disappear when you see that the pyramid is about to collapse. high return investments
All the "gurus" and experts agree that HYIP's 99. 9% (ie 100%) are simply pyramid schemes. While it is likely that some of them, especially the longest running programs, they carry out some kind of investment activity that allows them to at least get a share of any income, sooner or later end up having to rely on a Ponzi scheme greater or lesser extent. Most last about against other programs would mostly related to the interest rate paid (at a lower interest longer life) and the popularity of the program (greater popularity more influx of new investors).
On the other hand, the schwinn recumbent bike, there are also programs that already from the beginning are totally fraudulent and once we have received the funds after a sacrifice of fowl. few days or simply disappear with the money deposited. It is what is known as a "scam" (= scam).
Can you make money with HYIP's?
Although all involved admit that programs high yield investment are not actually more than Ponzi schemes, a number of people continue to "invest" in them and also the trend is growing.
Some people claim to have won large sums of money by using the right strategies. According to the explanations of these people, analyzing the characteristics of a HYIP estimate could reach their life time, can develop a suitable investment plan Omani pointing leave the system before its collapse. It is this characteristic of "high yield investment program" which makes it not only a game of chance, but in some respects resembles an investment.
The basis of the analysis is to determine the quality or longevity of HYIP potential taking into account factors such as Web page design, advertising spending does, the quality of the scripts (software), security systems you have, type of customer service, etc .. It is understood that the greater the investment that has had to the program administrator, the greater the length of this, they have to recoup their initial investment before closing.
Another important aspect is to investigate whether the program actually being paid to investors who are participating. To this end there are many HYIP monitors, which are Web pages devoted to analyzing the different programs that exist and invest in certain quantities to observe its operation. One of the most popular Spanish is hyips. es.
Obviously, investors sometimes go wrong with their analysis, but with a well-planned strategy and risk by diversifying the end result could be profitable. Or so say many of the participants in HYIP's.
types of HYIP
From the above analysis, we usually classify investment programs high performance in one of the following four categories.
Programs scam (scams). They disappear with the money after a sacrifice of fowl.|leaving the|a|using} few days.
Short-term programs: Duration from a few days to a few weeks.
Programs average length: 1 to 6 months.
Long duration: 6 months to several years.
The key would be to identify which group the HYIP and adopt a strategy accordingly with the estimated duration, while also recognizing the scams.
some basic tips.
Investment programs high yield have their supporters and detractors. It is undeniable that contain a highly addictive, which is related to its resemblance to gambling, but also have characteristics of investments, by the "technical analysis".
On the other side are the only investment programs in which people can participate and allow scarce resources get them perceptible performance. In any case, if you decide to "invest" in HYIP should respect some basic rules:
Invest only those amounts that are willing to lose. This is the golden rule for any high risk investment in general.
Do not be swayed by emotions or greed. In a product that looks so much like a game of chance is very difficult to maintain a cool head.
Find and investigate. Before participating in a program, you should discuss thoroughly. Visit forums related to the subject and called HYIP monitors. Be careful. Not all the information you will read are independent and can sometimes be manipulated. So you should always consult several different sources.
Diversify. The more diversified your investment, the more likely it is to succeed. If he misses a program, you can still make money with the other in which it has invested.
Try first. Invest small amounts to gain experience. When you have visited dozens of programs begin to differentiate which type they belong.
Invest in new programs. Remember, all HYIP's have a limited lifetime. If chosen you and has a long history, which can be incorporated at a time is near collapse.
As mentioned the HYIP investment is a much-maligned and beloved offshore and should make their own judgment about their chances. Do not be blinded by the prospect of making money fast and if you do decide to participate wisely and slowly.