What Are High Yield Investment Programs?


HYIPs are programs which pool together the funds with their members - hyips

to make the most of investment opportunities, like stock trading

and foreign currency (FOREX) trading amongst others. These HYIPs

attract funds from members (known as "deposits" or "principal") by

promising high rates of great interest payments, which explain why they

are termed "High Yield Investment Programs". Naturally, the larger

the promised monthly interest, the higher the risk borne by the members.

This really is because of the fact that HYIPs repay their members from the - hyips

returns on their own investments. Therefore, it is actually feasible for the

payouts to exceed the HYIP's own returns, especially when the pace

of interest payment is high. If such a situation persists, the

closure from the program could be inevitable and members will stand

to get rid of their principals.


A gimmick is a fraudulent business scheme and also this is rampant among

HYIPs. Some HYIP owners abuse the trust with their members by

misrepresenting for them about their investment strategy, once they

have NONE. Consequently, they will eventually exhaust money to

pay their members and many of them just disappear into cyberspace,

along with members' money. Therefore, we hope to

educate readers by offering our humble advices on minimizing the

possibility of being cheated.

Ponzi Schemes

This can be named after Charles Ponzi, an Italian who migrated to

america and became one of the greatest swindlers in

American history. His aliases include Charles Ponei, Charles P.

Bianchi, and Carlo. If you are paying off initial investors with money

taken from the later investors, Charles Ponzi were able to

swindle $15 million from 40,000 investors from 1919 to 1920.

This is the way the term "Ponzi Scheme" was coined. You need to be

mindful of the reality that some HYIPs are actually pure Ponzi Schemes.

My Advice

1. Never join any HYIP that pays greater than 3% interest daily as

it is difficult to purchase this type of high payout regularly.

2. Always perform a Due Diligence check on the program.

3. Tune in to what fellow investors need to say concerning the program

in the various hyip forums. See if it really has been paying its members.

4. Diversify your funds by making deposits in several reliable

programs. This reduces the chance of loss you are bearing. Even if

one program shuts down, you still need other programs as back-ups

so that you can recoup your losses from.

5. Determine the coherency from the program's investment strategy.

if and about they hav, find out if the owners know what they may be talking about ande

a solid business plan.

6. It is really not advisable to enroll in a program which uses poor language

on its website. if the program has thousands of dollars of deposits

they will be able to afford to spend several hundred to hire a

professional publicistd Alternatively, at least someone with a decent command

of English to instill confidence among investors.

7. Just because this system is paying does not mean they will likely

carry on and. Decide on your own how long more the program can

sustain and whether it be likely that you should produce a profit.

8. Always read the FAQs and also the terms of payment carefully.

You may discover some terms which can put you in an extremely unfavourable


9. Invest only what you are willing to lose. Expect the worst

but hope to find the best. Be conservative when calculating your profits.

Perform a scenario analysis. This can place you in the correct frame of

mind when deciding the exact amount to deposit with a program.

10. Usually do not compound your interest till you have earned your deposit

back. This reduces the chance of you losing money as some

programs usually do not survive for very long, particularly those without sound

business plans.