HYIP Insights #8 — The Wise HYIP Investor

Tired of losing money in the HYIP game?  Maybe Emily News can help you.  No one has a fool-proof system for winning at this.  But, collectively, we have been at it for well over 10 years.  This includes time as investors and now time operating a HYIP monitor.  So, we might have a few HYIP insights that others don’t have…

But, this said, I have to begin with a disclaimer!  This game IS unpredictable.  You may think that you have a system worked out and you may think that you are on the road to sustainable success.  Then, you lose again — and again.  So, what follows is our formula RIGHT NOW.  I think I understand this game better than I did five or ten years ago.  But, I am sure there is still a lot more to learn.  Read what I have to say and think about it long and hard.  If it rings true with you, maybe you will want to somehow make some of it a part of your HYIP investment strategy.  However, just like listening to advice on anything in life, YOU must make the decision to accept or reject what you hear — or maybe even to improve on the advice that was given to you.

In this article, I am going to refer back to previous articles in HYIP Insights that provide background material for what I write now.  There is no sense in repeating myself.  My apologies in advance if this requires you to interrupt this article now and then to reread something that we published a month or two ago.  I’m going to organize this article into a number of topics and will try to begin with what I think are the most obvious ones.  Then, I will gradually get into some of the finer points that are rarely discussed.  OK, so here we go…

This IS a game.

Never lose sight of the fact that 95% of all HYIPs will fail.  Maybe 100%.  Even though a few HYIPs may be based on real legitimate businesses, they can fail too.  Look at any HYIP monitor.  Do you see any programs that have been in existence for more than a year?  If there are, they are extremely rare and, if you invested in one of them when it first opened its doors, you would be very fortunate.  So, we are gambling; this is a game.  We are taking the chance that we are investing our money in a HYIP that will be around long enough for us to make a substantial profit.  So, again, the problem is how to optimize our chances of choosing the right HYIP to invest in.  You can read more about the “HYIP Game” here.

Diversify.

As the saying goes, “never put all your eggs in one basket.”  If your pet program crashed (as it someday will) you don’t want to be out of business.  Aim for an investment portfolio that includes more than one program — ideally a number of them.  What’s the number?  That’s impossible to say.  You should NEVER invest in a program that you have serious questions about just to increase the diversity of your portfolio.

Never invest more than you can afford to lose.

Yes, I know you have heard that before.  However, it’s sad but true that some people believe they have a sure thing going and will put savings/home/etc. in jeopardy in a wild attempt to strike it rich.  Like gambling at poker, nothing is a for sure.  Do everything you can to maximize your chances of winning.  However, you must accept the fact that some day (and no one knows when), your program will crash and there will be losers — and some big losers.  You don’t want to be one of them.

Avoid programs that use poor English.

All HYIPs will claim that they are successful at what they do.  To me, this implies that they should be able to afford the services of a translator to put the narrative of their website into acceptable form if the person who developed the script isn’t a native English speaker.  We have written an article about this issue that you can read here.  The bottom line is that a program with a poorly written website is probably a one man show operated by someone from their living room sofa who plans to make a few bucks and then run away and hide for a while — before starting another program!  It IS true that some such programs have survived for quite a while and that money has been made from them.  However, they should be viewed with caution as — at least to me — the poor language is a clear statement that the company is an imaginary one.

Avoid programs where its “legend” contains lies and inconsistencies.

The “legend” of a HYIP is the story that a website tells about how the program generates its revenues and why they need the help of investors.  We have written an article about HYIP legends that you can read here.  Like a program that uses poor English in its website, lies and inconsistencies in its legend are another indication that a program is probably an imaginary one — again operated by someone from his living room sofa.  When reviewing a program, we at Emily News always give it the benefit of the doubt concerning the truth of the legend it provides.  We will NOT do detective work to try to dig up dirt about every new HYIP that comes along.  However, in the situation where a company includes blatant lies and misrepresentations in its website, we will either not review the program or will point out these issues to our readers.  So, even though some of these programs have survived long enough to enable some of their investors to make a profit, they should be viewed very cautiously or avoided altogether.

DO invest in programs where the legend might be real.

For example, if a HYIP claims to be involved with oil prospecting or in multi-million dollar real estate sales and purchases, it is unlikely that the legend is true.  However, if it claims to be involved with crypto-currency trading or arbitrage betting, it is plausible that the legend is true.  In the first case we are talking about million dollar transactions.  In the second, the size of the transaction is flexible and is suited to the level of funding that a HYIP might generate.  This does not imply that ANY of the legends are true.  However, we always proceed with the thought in mind that occasionally a program comes along that might be the real thing.  In other words: “innocent until proven guilty.”  So, I would lean toward the type of program that might actually be a reality.

Avoid short term programs that offer extremely high interest rates.

Some programs offer such insane interest rates that they are obviously unsustainable.  These are extremely risky to invest in as such programs usually close very quickly.  If you feel an irresistible urge to invest in one of them, my advice would be to “get in and get out” ASAP.  But, they should never be counted on a source of sustainable income — not even for a few months.

Do invest in programs that have moderate interest rates.

It’s logical that, the lower the interest rate that a HYIP pays, the longer it should be able to survive.  So, if you’re thinking in the long term, it makes sense to aim at programs with reasonable interest rates.  What’s a reasonable rate?  My guess is that between 1% and 1.5% per day is about right.  When you start to approach 2%, you are getting into the “high” interest range (that’s 60% per month!).

DO invest in programs that have flexible interest rates.

Still thinking about sustainability, if a company has a legitimate source of revenue, it will have good days and bad days.  So, it would seem to make sense for the company not to pay the same interest rate every day.  A variable rate might be very helpful to a company in its struggle to survive.

DO invest in programs that only pay interest on workdays — if the business only generates income on workdays.

Similarly, if a company only generates revenue on work days, it makes sense that they should only pay interest on these days.  Again, this will help maximize the chances of a company surviving in the long term.

Well, this might be enough for now.  Most of this is common sense.  However, sometimes it’s helpful to have someone remind us of what is and what isn’t sensible.  And, I realize that you can easily point out cases where a company has turned out to be a winner in spite of the fact that it didn’t conform to some of these rules.  These are meant to be “safe” rules.  However, even though I consider them to be more or less safe, if you follow all of them to the letter, you might STILL wind up investing in a program that will crash before you made a profit.  In any case, I hope all this gives you something to think about.  Perhaps you might want to use this list as a starting point for your own set of personal rules to follow in HYIP investing.

Good Luck!

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