Tuesday, August 08, 2006

2 Million Dollar Question

Question 1:

I've heard many strategies for investing.Get back principal in 1 cycle,and only reinvest 50% of profits-to doubling your money and withdrawing your principal at that point. What is the most effective strategy you've learned from your experience ?

Answer: Because there are always human beings behind the programs, its hard to create one definite strategy that always works. You'll have to find out what's the best for you, according to the risk you want to take. Of course you're already taking a high risk investing in these HYIPs and Autosurfs...

There are a few principles that you should apply nonetheless:

1) Treat every program as a ponzi.Never think one is real.If there is such an enormous amount of proof available. To give you an example, i even see Feederfund;NSFG;FX experts as a ponzi- just for the safty of my own protfolio.

2) Invest just a part of your total budget, so diversify. Diversify between different programs: long and short term,HYIP and Autosurf. If you can find real programs, and have sufficient funds to invest in them-choose not only Forex,but also arbitrage,gold and other forms of investment.

Diversification cant be fully explained in just a short article. Therefore i recommend you find yourself some books at Amazon.com explaining it.

3) Get your principle out- you were right on this one. The best strategy to preserve yourself from losing too much money is to try to get your full principle back as soon as possible. Then you can decide whether to reinvest your profits or not. his depends on the program's status. If its still growing, you might want to reinvest everything. And if you think its already showing problems, reinvest only a bit or nothing.

4) Set goals, creat a strategy- and keep yourself to them. When reviewing a program, set yourself a goal you want to reach. For example, play one around and reinvest 40% of profits. Afterwards, keep yourself to your plan- otherwise your greed takes over, and you might lose all!!!

As you can see, there isn't one right strategy. And if there is one, why would i give it away...Since it could make millions!!? There are humans involved in this industry, and humans can be very unpredictable. Study emotions and psychology,those are key studies when you want to stay ahead in these HYIPs.
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Question 2 :

DO you think a HYIP program can last for 10 or more years?

Answer: That's a very interesting question my friend. The answer is yes!!!

A HYIP is literally a High Yield Investment Program. A program that makes investment that create high profits. And we're not talking about ponzi's and scams here!!!

If a program is well run, so it has a good management and company structure- but also a good financle status, professional investors, a good market to invest in etc -it can last for more than 10 years. But the chance is very small, since it depends on the people that work in the program, the people that work together with it, the market, the economy, the goverment- everyone can interrupt a flawless business.

At this moment i cant think of a HYIP that has run for more then 10 years. But i know there have been quite a few, and there must be a few still runing.

Normally its quite hard to find them, since most are private- can't be found online- and require a minimum of MILLIONS to start with. Oh, and those that know of such programs or inves5t can't tell you about them. Most of these great HYIPs use NDA's- Non Disclosure Agreement's.

Hope that answers your question!


Vincent