Tips on HYIP investing

What is an HYIP?

An HYIP (High Yield Investment Program) is an investment program that offers high return with a corresponding high level of risk. Obvious from its name, an HYIP offers relatively higher return compared to normal types of investments.

Let us stress that most of the HYIPs, especially those online investment programs, are pure scam. They are usually Ponzi investments, which means profits of older investments are paid using money from new investors. Once new investments declined, older investments cannot be paid anymore and eventually the program folds us.

Genuine high-yield programs do exist. Very few, however, are publicized so it’s a bit difficult to find them. Also, the high level of return they offer is difficult to sustain because it takes the same high levels of risks to generate that kind of return.

HYIP investing is almost always the same as gambling. If you insist on investing in these types of programs, check below some tips and things to consider before plunging into the HYIP world.

High Yield means High Risk. Most people are aware only of the “High Yield” part of HYIPs, but as we all know, return is proportional to risk. Simply stated: the higher the return, the higher the risk. In HYIP, you can lose everything.

99% of HYIPs are scams. Don’t easily invest on the first HYIP you see online. Continuous payment of profits and praises from investors are not guarantee that the program will continue to operate. Conduct online and offline research and investigation on the program.

Invest only what you can afford to lose. Since you can lose everything in HYIP, do not ever, ever, ever (have we pointed that out clearly?) invest any amount you are not prepared to lose. In the same way that you won’t go to a casino to bet all your money, do not “gamble” in HYIPs with the money for your house rent, child’s allowance, or groceries.

Diversify. Simply stated, “Don’t put all your eggs in one basket.” That is, even if one of your programs fail, you will still have some fallback. Imagine investing all of your money in one program only to discover the next day that that program is gone!

Take out your principal as soon as possible. Don’t be greedy, take out your principal investment as soon as you earn it back. If you want, simply  re-invest the profits. That way, whatever happens to the HYIP program, you won’t lose anymore.

Do not trust everything you see or hear about the HYIP program. Some forums and rating sites that promote the program are paid by the owners, which means you won’t normally get objective opinion from them. Exercise utmost prudence and diligence before investing.

HYIP investing is not for everyone. We don’t recommend it, especially to people who are not aware of the high risk it entails. But if you insist on taking the plunge, drop by the PMT Forum to ask members their thoughts and opinions about it.

Good luck!