HYIPs are programs which pool together the funds with their members - hyipsto make the most of investment opportunities, like stock tradingand foreign currency (FOREX) trading amongst others. These HYIPsattract funds from members (known as "deposits" or "principal") bypromising high rates of great interest payments, which explain why theyare termed "High Yield Investment Programs". Naturally, the largerthe 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 - hyipsreturns on their own investments. Therefore, it is actually feasible for thepayouts to exceed the HYIP's own returns, especially when the paceof interest payment is high. If such a situation persists, theclosure from the program could be inevitable and members will standto get rid of their principals.ScamsA gimmick is a fraudulent business scheme and also this is rampant amongHYIPs. Some HYIP owners abuse the trust with their members bymisrepresenting for them about their investment strategy, once theyhave NONE. Consequently, they will eventually exhaust money topay their members and many of them just disappear into cyberspace,along with members' money. Therefore, we hope toeducate readers by offering our humble advices on minimizing thepossibility of being cheated.Ponzi SchemesThis can be named after Charles Ponzi, an Italian who migrated toamerica and became one of the greatest swindlers inAmerican history. His aliases include Charles Ponei, Charles P.Bianchi, and Carlo. If you are paying off initial investors with moneytaken from the later investors, Charles Ponzi were able toswindle $15 million from 40,000 investors from 1919 to 1920.This is the way the term "Ponzi Scheme" was coined. You need to bemindful of the reality that some HYIPs are actually pure Ponzi Schemes.My Advice1. Never join any HYIP that pays greater than 3% interest daily asit 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 programin the various hyip forums. See if it really has been paying its members.4. Diversify your funds by making deposits in several reliableprograms. This reduces the chance of loss you are bearing. Even ifone program shuts down, you still need other programs as back-upsso 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 andea solid business plan.6. It is really not advisable to enroll in a program which uses poor languageon its website. if the program has thousands of dollars of depositsthey will be able to afford to spend several hundred to hire aprofessional publicistd Alternatively, at least someone with a decent commandof English to instill confidence among investors.7. Just because this system is paying does not mean they will likelycarry on and. Decide on your own how long more the program cansustain 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 unfavourableposition.9. Invest only what you are willing to lose. Expect the worstbut hope to find the best. Be conservative when calculating your profits.Perform a scenario analysis. This can place you in the correct frame ofmind when deciding the exact amount to deposit with a program.10. Usually do not compound your interest till you have earned your depositback. This reduces the chance of you losing money as someprograms usually do not survive for very long, particularly those without soundbusiness plans.