How to Use High Yield Investment Programs to Make Money

You will learn from this article how to: 

Select programs with potential  
Avoid bad programs  
Minimize the risk  
Make money. 
High Yield equals High Risk.

Let's face it: this section of the Investment business is not short of honest-looking, blue-eyed, sweet-smiling swindlers. This disappointing truth means either staying out of this business altogether or pick your way through it carefully and be on your guard. Of course there are honest Program Operators with integrity and it is rewarding to find them.

Being careful means only playing with the money you can afford to lose. I used the word playing intentionally. When you enter this market you will inevitably lose some money, if not all of it. That isn't a disaster when you only used money you can afford to lose and regard it as a sort of gambling game, but it is really disastrous losing all the money you invested in a desperate attempt getting out of debt.

Select programs with potential.

What is a program with potential? Is it the program with the highest interest rate? No, those are probably the least reliable ones. Ask you self a question: is it possible that an investment fund is able to pay you 5% a day, for a long time? Well you know it, of course not! Paying 5% every working day means 52 x 5 x 5% = 1300% a year!

High Yield Investment Programs (HYIP) will offer you anything between   and 5% per day, sometimes even more than that. Sometimes they offer a percentage of more than 100. This only means that, hopefully, you will get back the money you invested (the principal).

The lifetime of a typical HYIP does not exceed one year, of course there may be exceptions. Often it is a matter of months or weeks. Here today, gone tomorrow. It seems a hopeless task to select a potential program, doesn't it?

Well, here are some guidelines to find a program that you will give a try: 
Have a look at HYIP forums, they all have rating systems. Beware of HYIPs with problems or are not paying.  
Go for programs with short investment-durations. Investing money for a year in a fund that probably won't last that long, is not very clever. The higher the interest rate, the shorter the investment-period should be, keep it limited to one week if possible.  
Give preference to programs that pay back the invested sum. Programs that do not pay back the principle, promise high interest rates instead. The idea is that in time you will earn back the invested sum. But time in relation to HYIPs is a precious commodity.  
Avoid bad programs.

Work on the assumption that probably they are all bad and look for exceptions. Inspect their sites. What do you think of their look and feel? Use your intuition. Some useful signs and criteria are: 

Programs with absurd high payments, they gobble up your money and THEY make an absurd high profit.  
Have a look at the site of HYIPs that you are considering. Sometimes they have a client-forum. If so, look at the quality of responses. If they are all slimy clones of Uriah Heep then you know enough.  
Inspect their procedures, do they provide you with a clear account of your balance. Is the withdrawal function working? You can try this out by investing a small amount and see what happens.  
Minimize the risk.

Established investment-funds have a risk-management policy of their own and individual investors in traditional markets try to minimize the risk by spreading their investments over different stocks. Both groups spread their investments over several funds. Spreading the risk is what they do. The assumption is that not all the investments end in bankruptcy and certainly not all at once. If one does in a portfolio of 20 funds, there are still 19 left.

Unfortunately this policy does not work with HYIPs. Why? Because they are all likely to fail within a year. If you seek safety in spreading your money over many HYIPs and keep it there, you would probably end up losing it all.

Minimizing risks in HYIPs is done by limiting the investment-period of any investment and limiting the number of HYIPs you invest in at any one time. Not more than five.

Some HYIPs publish very interesting data on their sites. Such as: 
The number of investors  
The total amount of money currently invested  
The top 10 investors  
The bottom 10 investors  
Paid out today to. Reassuring to see your own (nick)name there when you are actually paid that day.  
Days in operation.  

If you consider putting some money in a particular program, study these data. If they are available you are able to work out the average investment. Do not invest considerable more than that average. For instance: if the total sum of investments is $ 50,000 with 20 investors, resulting in an average investment of $ 2500, then I would consider it very unwise to invest a sum of $ 20,000. Your stake in it would be far too high.

Make money.

It is possible to make money if you make use of the following guidelines: 

Only play with money you can afford to lose.  
Consider HYIPs as a sort of gambling opportunity and play with it.  
Investigate a Program as good as you can before putting money into it. Consider trying it out with a small amount first.  
Do not put all your eggs in one basket.  
Do not put your money in more than 5 programs at the same time.  
Review the situation regularly. Daily if possible.  
Go for programs with a short investment time, a few days, a week. If your choice is a program with a longer period, see to it that the promised interest is "realistic" (about 1% a day), if the interest % is too high, the program would probably not outlive the investment-period.  
Get your money back as soon as possible. Make use of programs that pay back the principal (the money you invested).  
Make limited use of compounding (adding interest to the invested sum in order to get interest over interest). This clashes with getting your money back as soon as possible.  
Withdraw the interest as soon as possible. Preferably daily.  
Summary. 

HYIPs are a risky business, see it as a gambling game.  
Play only with money you can afford to lose.  
Select HYIPs carefully.  
Avoid "too good to be true" offers.  
Do not put all you money in one program.  
Not more than 5 HYIPs at a time.  
Get your money back as soon as possible. Do not compound.  
Withdraw interest immediately.  
Good luck and have fun! 

For more information, please visit: High Yield Money Market
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