Friday, October 06, 2006

How Long Should You Stick With A HYIP?

Most people ask me when I feel is the right time for them to stop compounding/reinvesting and take their money out of a program. This is a tough answer to give. It all depends on the program that is invested in and the rate of return.

I recommend the following for the below 3 categories:

1. Low stable payers (Pays between 2-7% per week, 8-28% per month)

This type of program is probably one of the safer types around. More likely than types 2 and 3, these are actually investing funds in Stocks, Forex, or other stable programs. This means that they will most likely be around for quite some time. Even if they do end up as a ponzi, their lifespan will be much longer then types 2 and 3. I recommend that you Invest a sum of money and then compound half of your returns until you get back your principle. Once you have recovered your principle continue to compound/reinvest but this time at a rate of 60-70% of your returns. If the program sticks around, you should be able to profit quite a bit. Once you receive 250% return I recommend that you stop compounding and look for another program.

2. Mid range paying moderately secure program (Pays 8-16% per week, 32-64% per month)

This type of program is probably the most popular among investors. They feel secure since the payouts are not too high, but also feel like they are going to quickly make a return on their investments. Many of these programs actually invest in other programs, forex, stocks, etc, however many are just ponzi's. I have found that most of type 2 HYIP's are a mixture of both ponzi and investment program. They more then likely invest members funds in a variety of ways, but most of the time find it impossible to pay out such high returns with the revenue they are making. This forces them to become part ponzi and use some of the new members funds to pay off old members. In the case of the type 2 HYIPs, I recommend you compound/reinvest only 20% of your returns until you get your principle back, then once you get your principle back you simply stop reinvesting and just let the program run it's course.

3. High paying, relatively insecure programs (Pays Over 17% per week and over 65% per month)

These are usually the programs which are more then likely daily payers. For example 3%, 5%, 10% per day or even more are offered. 99.9% of the time these are atleast part ponzi, and will most likely end within 3 months. These programs begin with the admin knowing that he will have to run a part ponzi program to succeed. It is nearly impossible to earn such high returns in a short period of time like most of these programs claim. The higher the daily return the less likely the program will last. If you dare to gamble your money in such programs, I recommend that you only invest one time and do not reinvest or compound your earnings. The lifespans of type 3 programs are usually extremely short and those who invest right when the program opens are the ones who will walk away happy.
All in all these are just some of my opinion. Performance may vary. Stick to these guidelines and investigate HYIP's before investing in them.

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Anita said...

2-7% per week??? Seriously, is this for real? Have you seen such returns? We're definitely going to keep coming back, I see retirement in my near future!


Homework62 said...

Well I have joined programs that gives as much as 25% daily, but there is more to learn about hyip than just dumping your money on it. It is more like gambling in my opinion.

JE said...

I tried a HYIP only once. It was 12 Daily Pro, and I got in towards the end right when everything collapsed. I originally invested about $500, and was able to put $250 back in the bank before things went bad. I had a pending payout of about $1200 when 12DP got shut down.

Ever since then, I haven't had the heart to get back into HYIPs...

Homework62 said...

"Investing" on hyips isn't really investing at all in my opinion since the owner can run with our money at any time, there are "strategies" we can do so that we could earn on hyips, I have lost a lot on hyips myself, but have also earned more than I have lost.

Right now I just treat HYIP's as just gambling with my money, as with gambling, there are tactics to be employed to get your winnings.

Work at Homes said...

If done right HYIP and Autosurfs can make you great money. I've been in a few had a few success...but also quite a few failures. Defitnetly avoid the High earning ones. The key is research about the sites you join and also telling others about it.

Martin said...

I have a blog about making money on the internet let me know if you're interested in exchanging links.


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