The HYIP Philosophy Of One Investor Part 2

July 22, 2007

In the first part I started to tell about the mistakes made by one of my familiar HYIP investors. There is no doubt that these mistakes in HYIP business could be typical for each investor regardless of that fact if this investor is experienced or a usual novice. Well, I continue the story of the investor in his philosophical point of view about his big mistakes in HYIP.

Getting greedy is one of serious mistakes of HYIP investors. My HYIPer says that making money with HYIPs is not really the problem. It’s keeping the money in our pocket that becomes difficult. The temptation to reinvest every single cent to keep our profits growing is so great. The HYIP wiser tells about a program that was paying 5% a day for 30 days.

Every day he woke up and checked his E-gold account to find a nice little deposit. A couple of weeks passed and things were looking good, so he reinvested all of his profits. This went for about 3 months. By this stage the HYIPer grew his investment with this program by reinvesting all the profit.

Unfortunately the program stopped paying. Obviously he got a bit greedy and wanted to multiply his profit quickly. As mentioned before, a better approach might have been to reinvest half of the profit and take the rest to invest elsewhere.

It is very interesting to watch some of the rating sites and how their Top Rated programs seem to fall one after the other. “Maybe it is because all HYIPs have a limited life-span? Or is it because of all the rumors that start floating around once a HYIP gets in the spotlight?” asks the investor.

According to the HYIPer, it is necessary to mix his program selection with some well known HYIPs and some more obscure programs. The ideal HYIP of my investor is one that is not in the spotlight but has been paying successfully for a while (4 months or more).

Some HYIPs seem to struggle when making large payouts. My HYIP wiser recalls a HYIP that became very popular all of a sudden after being rated high on one of the rating sites. Within 3 weeks a number of large investors had started requesting withdrawals. It quickly became apparent that the admins did not have the funds available to make the payments.

It is possible that they were scammers who were not really investing the funds, but it is all possible that they had invested all the funds and did not have enough liquid funds to honor the withdrawal requests. Either way rumors flew or things spiraled badly. They were out of business within a couple of weeks. The HYIP investor finds that making small, regular withdrawals is often better for everyone.

The wise HYIPer mentions that it is advisable not to invest without doing any research. If you are like this wise investor, the last thing you want to do when you find a promising HYIP is to do a whole heap of research.

But then came that time when the investor made a deposit only to find out 10 minutes later on one of the HYIP discussion sites that they have not been paying for the last 5 days. As to my HYIP wiser, how can these programs stay online even after they have been proven not to be paying! Someone must have forgotten to press the off button on many of these HYIP scripts.

Another point in the HYIP philosophy of my investor is investing big at the end of the year. One day he told me about a HYIP case. At the end of 2004 a hand full of solid HYIPs started to come out on top. More and more people invested big into these “safe, established, sure things”. Things were looking good.

It was not until mid December that things started to fall apart, in a big way. One after one these established HYIPs started falling. There is no doubt that online marketing hits rock bottom around Christmas time. People do not have as much money to throw around. In fact, many people probably start withdrawing their HYIP profits around this time leading to a mini-HYIP-recession as it seems. This is an established trend that seems to appear online year after year.

In the conclusion of the story about the mistakes of my now wise big HYIP investor, I can surely say that six months into HYIPs he realized that he was tracking the wrong things! The investor was keeping track of all his individual deposits and withdrawals, which is great.

But the problem was that the HYIPer did not have an overall picture of how his portfolio was performing. He was not able to say exactly how much he had put in, what his portfolio is worth, his overall returns to date and his project returns for the coming month. After experimenting with a few different Excel spreadsheet designs my HYIP wiser realized that for him the key is to keep his tracking sheet very simple so he can see the big picture.

Here are some of the main things that the HYIP investor track for each HYIP:
- Name
- Web Site Address
- Investment (amount invested from E-gold, etc)
- Worth (what’s the current investment worth in this HYIP)
- Earnings
- Earning vs Investment ratio
- Projected profit for next month
- Any comments, interest rate, concerns, etc.

This way the investor can list all the HYIPs on a single page with a total at the bottom. By focusing on these high level numbers as opposed to the individual deposits/withdrawals he is able to see the big picture, where he is over exposed, where he is having success and a lot more. Putting together a suitable spreadsheet makes the daily task of tracking your HYIPs a pleasure.

At the end of the day making money with HYIPs is as much an art as it is a science. By setting and following your own rules you can dramatically reduce your risk of losing money and hopefully significantly tip the balance in your favor to make some serious returns. I hope that this story about the HYIPer’s mistakes would be the last one in my writing career.

Posted in HYIP