When doing research before investing in a unit trust, stocks or hyips, most ppl conduct some form of due diligence.. this passage showcases a number of due diligence myth that ppl shld take note of before investing
Are you doing your Due Diligence? Everyone in the high yield investing words speaks about this. You have heard it many times - “Do your DD and you’ll be OK”.
Is this really true? You have seen many high yield programs fail even after the best DD. There is never guarantee. But think about it, if you could avoid 99% of the mistakes that the Due Diligencers do, you’ll have 99% better chance to make successful investment.
Here are the top 10 mistakes and myths in doing DD:
1. Low paying programs are more reliable Low paying programs are just low paying. The low ROI alone does not prove anything and it is not advantage. The lower the program pays, the longer you need to be in profit, the bigger is the risk to loose. Of course you should spot the crazy paying programs as scams, but after that the ROI is not a criteria regarding program’s reliability.
2. The admin is honest (nice) The admin’s behaviour has too little to do with the investment program credibility. Surely, with good psychoanalysis you could understand if the admin is mad or dishonest, but even the greatest and gentlest admin is not indicator that the program is for real
3. There is a phone, the program must be legit Today you can get real but anonymous phone number for few hundreds of dollars. It could be call center, virtual office or other similar kind of service. You can’t track the owner of that number, therefore it is not heping you to track potential scammer. Very often the false investment programs give phone numbers with the only idea to gain trustand make themself look real.
4. There is an office, the program must be legit Getting an office is harder and costs more. But still it won’t help you trackign the thief. In many countries an office can be hired anonymously, and even if this option is not available, the thiefs use fake IDs (you can even purchase one online).
5. You can meet the admin, they are for real Yes, if you can meet the admin, you at least know he/she is a real person. Can’t they disappear though? See the previous item about the IDs.
6. The admin can show incoroporation documents, this proves they are for real Option 1: The incorporation documents can be faked. Ok, you can eventually check this and spot them out Option 2: The company can be real, but registered by phantoms. If you can’t track the person who owned the scam, you can’t do anything useful Option 3: Ok, there can be a real company. And even then they can scam you - the HYIP history shows several cases in which the program simply start reporting losses. You can’t call the authorities against such company - because when invested you have agreed that losses can occur.
7. The HYIP is paying for long time This is certainly nice unless you are dealing with a ponzi scheme. The longer a ponzi pays, the lower is the chance for you to win when joining. Ponzis have lifetime, you know. Paying for long time alone does not prove anything.
8. Offering managed accounts means they do really trade Offering managed account really proves that the company offers legitime investment service. But this does not prove that their pooled (or whatever they call it) HYIP is also based on real trading. A very clear indication for fraudient scheme is when the managed accounts are producing losses, but the HYIP keeps paying just fine
9. They accept bank wires, so they can’t run away They can run away if they want. I can name at leats 5 HYIPs which accepted wires, but this did not stop them to diappear. Using bank makes the things harder for the scammers, but not impossible
10. They have referal program, must be scam The affiliate marketing is one of the most powerful tools in the internet business. There is nothing wrong to offer referal bonuses for investors who bring other investors - this is a very effective advertisement method. The referal bonuses are red flag only when they are too high.
Original Story | digg story
Tuesday, October 10, 2006
HYIP Monitors - How they work
HYIP monitors are often used by HYIP investors as a form of guide on whether a program is a scam but there is something more to it than that.. some monitors themselves are corrupted.. read on to find out why
There are several sources of information about HYIP programs, though no one of them is perfectly reliable, you should use them all and know how to find the needed information about every certain program. Without the right information it may be much harder to be a successful investor.
One of the main sources of the HYIP information are the HYIP monitors. HYIP monitors list all HYIP sites and provide with some basic information about the program, as when it was started, how does it claim to gain the needed profit and what are the interest and fees, but also the most important information - if the program is paying or not. Some programs continue operating even after they’ve finished to pay their members and while experienced investor may always find out easily if the program still pays or not, newbie investors may sometimes lose money on such programs.
All HYIP monitors work in a very simple way, they just monitor all the HYIP programs and also sort them by payouts, age and their preferences. Lots of HYIP monitors also allow people to vote for the programs. While this is a great feature, some of the votes may be easily forged by the program owners themselves, but still the majority of votes are usually made by real persons, which were happy after they got paid. Also pay more attention too the bad votes.
Good programs are never marked with “not paid”, so if any HYIP monitor claims that the program is not paying, stay away from it. But even if the program is paying now, it may stop paying soon and turn to a scam. Look for more information about a program before considering an investment.
There are now hundreds of different HYIP monitors and most of them list hundreds of HYIPs, the competition is very high, though Goldpoll is one of the biggest HYIP protals. Other good HYIP monitor is HYIPs Analysis, where you can check an average lifetime of any HYIP program and estimate how long will a certain HYIP last.
HYIP monitors earn from the interest paid by the HYIPs, but also form referral comissions generated by their visitors who decide to invest in the program. Also every HYIP owner should usually pay around $20-$50 to get his HYIP listed. This money is invested aftewards into the program.
HYIP monitors are great to check the program and see if it pays, but they mostly list programs paying high returns, like over 10% daily and these HYIP usually don’t last long, so a lot of people get scammed by believing that the program is able to generate this kind of interest for a long term period.
Use HYIP monitors to find new programs, but also use HYIP forums and read HYIP articles to educate yourself more and to be a more successful investor.
Original Story | digg story
There are several sources of information about HYIP programs, though no one of them is perfectly reliable, you should use them all and know how to find the needed information about every certain program. Without the right information it may be much harder to be a successful investor.
One of the main sources of the HYIP information are the HYIP monitors. HYIP monitors list all HYIP sites and provide with some basic information about the program, as when it was started, how does it claim to gain the needed profit and what are the interest and fees, but also the most important information - if the program is paying or not. Some programs continue operating even after they’ve finished to pay their members and while experienced investor may always find out easily if the program still pays or not, newbie investors may sometimes lose money on such programs.
All HYIP monitors work in a very simple way, they just monitor all the HYIP programs and also sort them by payouts, age and their preferences. Lots of HYIP monitors also allow people to vote for the programs. While this is a great feature, some of the votes may be easily forged by the program owners themselves, but still the majority of votes are usually made by real persons, which were happy after they got paid. Also pay more attention too the bad votes.
Good programs are never marked with “not paid”, so if any HYIP monitor claims that the program is not paying, stay away from it. But even if the program is paying now, it may stop paying soon and turn to a scam. Look for more information about a program before considering an investment.
There are now hundreds of different HYIP monitors and most of them list hundreds of HYIPs, the competition is very high, though Goldpoll is one of the biggest HYIP protals. Other good HYIP monitor is HYIPs Analysis, where you can check an average lifetime of any HYIP program and estimate how long will a certain HYIP last.
HYIP monitors earn from the interest paid by the HYIPs, but also form referral comissions generated by their visitors who decide to invest in the program. Also every HYIP owner should usually pay around $20-$50 to get his HYIP listed. This money is invested aftewards into the program.
HYIP monitors are great to check the program and see if it pays, but they mostly list programs paying high returns, like over 10% daily and these HYIP usually don’t last long, so a lot of people get scammed by believing that the program is able to generate this kind of interest for a long term period.
Use HYIP monitors to find new programs, but also use HYIP forums and read HYIP articles to educate yourself more and to be a more successful investor.
Original Story | digg story
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