A number of days ago, we began a review of past HYIP Insights articles. We covered the first three of them that we feel are timeless and are as useful today as when we first published them. Today, I’d like to take a look at the next three HYIP Insights articles that we feel have this timeless quality. Again, if you would like to read the original article, simply click on the heading title as it appears below and you will be taken to it.
HYIP Insights #7 — Honesty is the Best Policy. This article was directed at Admins of HYIPs and operators of HYIP monitors. It was actually a very difficult article to write. The reason is that we KNOW the HYIP business is a game where the “Legends” (see HYIP Insights #6 for a discussion of the HYIP “Legend”) told in program websites are usually fictional. You can certainly call this lying. However, if you regard this as simply part of the game, perhaps it isn’t.
What was the article in HYIP Insights #7 directed at? Many things…
- The HYIP that included blatantly false information in its website Legend. An example was a very popular one that hired an actor to portray its CEO.
- The falsification of data regarding the popularity (“likes”) of both monitors and HYIPs on their Facebook pages.
- The inflation of data by HYIPs when they list the number of members in their programs.
- The practice by some HYIPs of accepting deposits when they are no longer paying interest.
There are probably other abuses that we missed. However, we were trying to emphasize that, when you play a game, there are certain rules that you abide by. In the HYIP game, these are unwritten “gentlemanly” rules. The article was a plea to abide by these rules.
Please look the article over again and see if all this makes sense…
HYIP Insights #8 — The Wise HYIP Investor. In this article we took a shot at enumerating factors that the wise HYIP investor should keep in mind. We emphasized at the beginning of the article that investing in an HYIP IS a game and that, even with a well-defined set of procedures to follow when investing, the game is still extremely unpredictable. In short, you have to expect the unexpected and that includes losing once in a while. However, it certainly doesn’t hurt to have investment guidelines that you feel are wise ones. They might even help you to make decisions that will result in your coming out ahead more than in the red. This was our motivation for writing this article. In brief form, here are the factors we brought up that we think the wise investor should keep in mind. Many were covered in detail in previous HYIP Insights articles:
- Diversify.
- Never invest more than you can afford to lose.
- Avoid programs that use poor English.
- Avoid programs where its “legend” contains lies and inconsistencies.
- DO invest in programs where the legend might be real.
- Avoid short term programs that offer extremely high interest rates.
- Do invest in programs that have moderate interest rates.
- DO invest in programs that have flexible interest rates.
- DO invest in programs that only pay interest on workdays — if the business only generates income on workdays.
Please refer to the article for a discussion of each of these points.
HYIP Insights #9 — Breaking Even. When we review a new program in the Emily News monitor, we will almost always determine how long it will take the investment plans offered by the program to break even. This is an extremely simple calculation to do. You simply divide 100% by the percent of your investment that you receive every day as interest. For example, if an investment plan pays you 1.3% interest per day, you divide 100 by 1.3 to get 76.9 days which you would round UP to 77 days. This calculation is so easy to do that, the minute an HYIP indicates the interest that it pays you, you should be making a mental estimate of how long it will take the plan to break even.
The article in HYIP Insights #9 takes a look at different interest rates and the breakeven points associated with each of them. It then discusses which rates might or might not be practical for the HYIP investor. On one hand, if the interest paid by a plan is so low that you won’t break even for a year, you might worry about the program closing before you break even. On the other, if the interest paid by a program is extremely high and you can theoretically break even in only a few weeks, you might be worried that the program might not be able to sustain payment of interest earnings to its investors and will close prematurely. The sweet spot might be investment plans that pay between 1% and 2% per day with corresponding break even points of 100 days and 50 days.
The article discusses all this in much greater detail and includes a spreadsheet printout of breakeven points for different interest rates.
