The Secret of Hyip

Maybe, main reason why can you invest in wrong HYIP is your misunderstanding of real HYIP profit .

You should understand this process and stay away from BAD HYIP. 99.9% of all HYIPs are SCAM. But how I said in my first letter: Investing in HYIP like poker game and you should know rules of the game.

In this lesson I will show you most probable profits of GOOD HYIP and how it formers.

Many prospective participants of high yield income projects think about where the organizers take such big money that they can regularly pay very serious interests. Incomes, surely, do not come from nothing. In serious HYIP experiences managers, professionals developing and realizing many high income projects work over the effective investment schemes.

So the main sources of incomes in High Yield Income Programs are the following:

• Investments in FOREX market
• Trading of stock of different companies on international stock exchanges
• Participation in different commercial sweepstakes
• Investing into high-yield business
• Import and export of scarce goods.
  

That means, actually by accumulating money of the participants, the programs’ leaders use them as their floating assets. Then by investing in high-yield projects and actively using the off-shore status they create the profit not subject to taxation. As the result there are sums enough to support the HYIP activity and to pay charges to the investors, as well as to further expansion of the program.

People distant from complex economic processes may think it is unreal that over a month the amount of the investment may double or even triple. An experienced investor always may predict which investment will bring profit and which will not. Having wide knowledge and serious experience he/she is able to easily make profit from price fluctuations to some goods.

Many investors have made huge fortunes on the currencies rate fluctuations. Trader who knows the specifics of currency market over just few hours may double the invested capital.

For example, trader has 100$ and he/she is going to speculate for Euro fall and long for Dollar. Trader takes 9900$ no-interest credit and sales 10000. Then he/she buys Euro at the rate 0.9755 and in a few hours resells it at the rate 0.9845. Then he/she pays off 9900 to the broker and the pure profit of the investor is 90$. So the deposit increases 90% less than in 24 hours.

Surely, for an inexperienced investor an attempt to play for currency rates fluctuations may result in financial crash. Instead of prospected profit he/she will bear significant damage. Actually, the role of all high yield income programs is to create some initial fund of money from investors’ contributions and then using various economic schemes to distribute it among profitable projects.

Within HYIP there is no industrial processes, projects’ managers do not just manage your capital but help you to multiply it. HYIP is an agent between a private investor who does not have possibilities and knowledge to effectively play on the market fluctuations and high yield economic formations. Of course, besides for the currency rate play there are many other effective methods to invest money, for example, buying securities of organizations which work well in the developing countries. Such financial instruments are risky but the risk is compensated by their high profitability. Besides the HYIP leaders prefer to reinsure and place the part of the invested funds into securities of the highly reliable companies.

Good HYIP will never lie to its clients because high yield income programs are an ideal example of mutually beneficial cooperation. By effective management of the investors’ capital the program organizers get enough income to pay interests to the investors and have profit on their own.

The rate of capital circulation, for example, on FOREX significantly increases the circulation rate during regular business activity. In 24 hours one can perform several high-yield transactions providing every-day or every-week payments. However, you should not forget that the majority of projects’ organizers prefer keep information about their income sources secret, fearing unfair competition. That is why often the high yield income programs are not absolutely transparent. However, it does not influence the regularity of payment and programs trustworthiness. High Yield Income Programs’ leaders knowledge well the fact that the effectiveness of mutually beneficially cooperation are not likely to risk their investors’ trust.

Risks

For a private investor almost all options for risk-free investing are closed. That means, if someone wants to invest money and soon get high incomes from the investment, he/she will risk anyway. You can, of course, deposit your money with a bank, but the private investor rarely has enough initial capital to make a fortune out of the bank interests. That is why the only way out is to invest your money into high yield risky projects. You should always be careful about the programs connected with risk.

First of all you should do your best not to engage into false project or financial pyramid. You have to carefully study all program features and only after that start investing. The situation gets more complicated because even the trustworthy projects fail sometimes. It happens, for example, when program leaders did not manage to promote their program right or played fair on the currency market risking all their funds.

There is a number of rules and peculiarities by studying which the private investor gets the possibility to minimize the risk. Let me consider them in more detail.

The nature of the high yield income programs is such that almost all of them terminate their activity someday. Pyramids programs fail losing all clients’ investments, serious HYIP paying off to their investors come to an end. Surely, all ‘honest’ projects are developed in a very accurate manner and designed for a maximally long functioning term. But often the closure is connected with the objective economic reasons that are very hard to eliminate.

A standard living cycle of high yield income projects comprises four stages: pay-back period, period of growth, period of saturation and descent period. Here they are in detail.

Pay-back period is the birth of the project. The creators of any HYIP invest some money into it. First of all, they are needed for creating a well-functioning and nice web-site, for content development, registration in paid rating systems and for advertisement. It all costs money and as the project does not bring any profit yet the period is always loss-making. One cannot assess the reliability of the project during this period; however, there may be some indirect signs that the project is a fraud.

For example, when the web-site is hosted free of charge and all content is stolen from some other web-site, it is intended to collect money and close itself.

Growth period is the beginning of project’s functioning. During this period the investors appear who try to attract additional clients with a view to get the referral payments. At some moment the project comes over the point of self-sufficiency and starts bringing the real profit. The project success at the stage depends on the scope of methods applied for attracting the clients. A direct sign that the organizers plan to further support the program are the various strategic actions such as extra money to the account of everyone who register in the project, for example.

Period of saturation is the most stable period in HYIP functioning. During this time the investment flow has stable growth, the program brings maximal profit and clients receive their interests regularly.

Descent period is a determining stage for further program’s life. It is characterized by the fact that the users lose their interest to the project, the flow of new investments fall and the program ends its development. All false projects terminate their activity few days after they enter the descent period, they don’t pay to their clients and disappear with no trace. Creators of trustworthy programs undertake measures trying to bring their projects out of the stagnation.

Once you analyze the HYIP actions during the descent period, you can make a conclusion about the perspectives of investing into the project. If the program has passed the crisis situation, continues to work and bring profits to its investors, you can be sure in the project: it is a serious business undertaking aimed at mutually beneficial cooperation. You can learn that the project enters its descent period by analyzing its advertising dynamics.

As soon as the users’ interest starts decreasing, the project organizers develop a demonstrative agitation: they write letters to the program’s participants, register in new catalogues, post messages on forums and guest books. Of course, the investor shall do his/her best to find out the perspectives of the project before it reaches the crisis point. The successful end of the descent period may become a signal for those who wants to join the program at its new stage.

What about those who plan to participate in the program from the very start? Those investors shall make a detailed analysis of the selected HYIP in the very beginning and invest their money only after they are sure of the program reliability.