Investing in HYIPs requires a very well designed risk management plan and a capital which you can afford to lose. This capital should be from $200 to $500. You can try with less or more but my suggestion is between these amounts because if you make profit, that will be nice money, but if you lose that wouldn’t hurt as much as if you would lose thousands of dollars!
The first and probably the most important thing about the investment process is diversification or in other words „Never put your eggs in one basket”. This is a key risk management tactic which can save you lots of dollars! Just like with other investment opportunities there are different risk rates here too. For example a HYIP which offers 300% ROI after 3 days does not carry the same amount of risk as the HYIP which offers 300% in 3 weeks. There are other components other than just ROI but the essence remains. In my oppinion, depending on the amount of your capital, you should diversify your portfolio among 5-10 HYIPs because this way you reduce the risk massively! Do not invest equally in all of them but invest according to the amount of risk.
The second most important thing is that you must get your capital back as soon as possible! Lots of HYIPs offer a compounding option which means that your profit will be automatically reinvested until the investment period ends. It is true that you can make a huge profit this way but most of the Hyips use this option to keep the investors money in their program to make greater profit when they run away. Don’t even think about compounding until you get your original deposit back! Do daily withdrawals where possible. After you got your deposit back, you still have the option to consider the compounding option.
The third most important thing is Investigation. When you find a HYIP always check these things:
The ROI. 1-3% daily is reasonable and realistic.
The website. If it has poor design or it has that common HYIP script which 80% of the HYIPs use run away as fast as you can! The website and script should be unique!
Always check the customer support by sending an e-mail, or by contacting the live support online or on phone.
If there are stats on the main site always check them. If the amount of deposits is 3* or 4* as much as the withdrawals, you can still make profit, even if it is a PONZI.
Check the site’s DDOS protection. A DDOS attack is common among HYIPs so having a good protection against it creates a higher value for the investment program.
Check the Whois info. It is a good sign if the domain is registered for more than one year.
Ask for Due Diligence Documents. These can be Company Registration Docs, or Personal ID, and maybe trading results.
What are the payment methods for deposits and for withdrawals? Most of the HYIPs work with e-gold only. The better ones accept Bank Wires and E-Bullion too. If there withdrawal fees, consider investing twice unless they have a very good reason for it!
Check the HYIP Monitors like Goldpoll and Hyipranks.
A referral program can be either a good sign and a bad also. If the ref comissions are too high then the program focuses on getting more new investors to be able to pay. This smells like a Ponzi. On the other hand if they offer a solid ref comission, that is a good sign, because the fact that an Investment program coming online is that they would like to trade with bigger capital to achieve their goals. For bigger capital they need investors. For investors they need marketing. There is nothing wrong about that. The forums of the Hyip programs like MoneyMakerGroup or Hyipranks forum, maybe Talkgold are also resources of investigation. Read people’s oppinions about the program but do not let yourself to be affected too much, because as I said there are lots of corrupt people there!
A few more good signs: SSL protection. Certificates of trust and legality (Better Business Bureau etc.)
When you fall into this area of moneymaking you can easily make the mistake to be piggy. If you act like that, you will pay the price! Always consider twice before investing and THINK! Do not fall for cheap tricks.
For a beginner I have two more suggestions.
1. Check out the service of Hyipsignals. You can save time and money with them.
2. Check out Booklands HYIP reports here: http://www.huanghanshi.com/money/dailyreport.htm
This guy is amazing and even if he is not 100% accurate all the time, he is accurate most of the time!
The Perfect High Yield Investment Program?
Finally I would like to describe how the perfect program would look like to me.
They would have a unique website and script which is easy to navigate and has DDOS protection. The site would contain the methods of how the profit is made. Actual trading results. There would be 1-3% daily interest which depends on the amount of deposit. Principal is back after the investment period. Compounding OPTION. DD documents would be provided to any investor. Live Customer Support Online and on Phone. Corporate information. Offices outside the Tax Heavens. $50 minimal investment limit. Proper Risk management E-Gold, E-Bullion, Credit Card, Bank Wire deposits and withdrawals. Fast withdrawals. Inner exchange service. No withdrawal fees for E-Gold and E-Bullion. They would have their own forum for their community and support. Debit Cards for withdrawals which can be loaded directly from the accounts. Certificates of the legality of the business. SSL protection. Multilanguage website. As an additional service they would provide infos about how to reduce taxes.
This program would be a dream come true for many HYIP investors. So do not keep it secret if you find one!