Diversification: an important strategy for earning in the HYIPs
Diversification – any investment carries a certain risk for the investor. We do not know how much one or another investment tool will work and, whether it will give any profit at all. If you decide to play with HYIPs, you need to understand that this is a real game with fire. And this fire can burn down the entire contents of your wallet.
HYIP projects are unstable to the point of insanity. If an inexperienced investor enters the path of this earnings, he risks staying with empty pockets. That’s why I created a blog, which is called Sledui za mnoi (Follow Me). It was made to tell everyone how to invest in HYIPs, be on horseback, and not vice versa. In this article, we will talk about diversification.
HYIPs are opened and closed every day. Those investors, who lost their money after different scams, do not know where to go and where to repel losses. Most of the losses come from the wrong projects. If you make your deposits carelessly, you can quickly lose all your capital and live on one salary. But even if carefully selecting candidates for your portfolio, this does not protect you from losses. Sometimes even the admins themselves are not aware of how long they will be able to work. But there is no need to fall into despair. The situation is not so hopeless, there is a way out, and I’ll tell you about it.
As the British folk wisdom says: “You should not put all the eggs into one basket”. One day you can easily lose all these products of poultry production at one moment. In the HYIPs this proverb has found its full reflection. If all your funds are incurred in the pocket of one administrator, then you can not only suffer from insomnia and take sedatives, but simply lose all the capital. If the same capital is divided into small groups and invested in different HYIPs, then you are well protected. To denote this simple technique, the word “diversification” is used.
The essence of diversification lies in the fact that the distribution of money for several HYIPs reduces your risks. Let’s say that if an investor in a hurry invests money in one project, he will either suffer a defeat and will cure his wounds for a long time (if he does not have more money for new investments) or he will win the jackpot and will rejoice until the next scam. But if you broke the capital into parts and invested it, then even if one of the projects unexpectedly closes, then you do not have to fall into depression. The profit from other sites will cover your losses, and you won’t lose anything, or even on the contrary – you will succeed.
In simple words, diversification – it is the division of available finance for different HYIP projects. If you really want to understand this strategy in details, then I will give you a concrete example of diversification.
So, the investor has 1000 $. This is his whole capital, and he cannot lose money, so he needs to diversify. How can he distribute the money to get the desired profit? Everything is simple.
Let’s admit that our investor has about 10 HYIP projects, which he carefully selected and is confident in his choice. It is stupid to throw the whole amount in one of the HYIPs. It can quickly be converted into losses if the project closed because of the greed of the admin who saw a thousand dollars and his greed overpowered his human being.
So, in order to reduce the risks, it is necessary to break up capital into equal parts and enter few projects for $ 100 instead. And it is better to invest not only in 10 but even 20 projects. In this case you will be able to make a deposit of $ 50 each.
In the end, we can conclude that the more projects you take into your portfolio and the smaller sums of inputs you make, the lower are your risks.
Principle of diversification
If diversification is used by frank loser, then the strategy will be a failure and you won’t be able to organize any minimization of risks. Sometimes it’s not enough to have money and be able to distribute it to succeed. That’s why you have to pay attention to some of the nuances:
- Do not choose any kind of projects for diversification. You may choose just few, but they must be of high quality, do not pick up any slag. If at some point the variety of the high-tech industry does not satisfy you, then do not hurry. Just wait for more worthy candidates for investment. In the meantime, try to keep your money in the wallet.
- Before investing, determine the amount of deposit for each project. For example, if you do not want to risk, then invest 5-10% of your bank in each project. If you want excitement, tickle your nerves or earn more and faster, you can increase the size of the “rate” to 15% -20%.
- Do not forget about the basic rules of the investor: try to withdraw your profits regularly, do not forget about the seasonal nature of the HYIPs, enter and exit the project on time, make up a portfolio with different sites – include not only fast, but medium-, and a few low-profit projects.
- Try to choose projects with the included deposit in your portfolio. If you run into the scam, you will have time to get something out.
Do not think that diversification is a panacea for all diseases. Although in general this is a successful strategy, which is used by all experienced investors, but sometimes it doesn’t work. An important role is played by your ability to analyze projects, pick them up in your portfolio and even develop intuition.
Global risk diversification
If we talk about the most effective variant of diversification, then it’s worth mentioning that you cannot protect yourself by investing only in HYIPs, no matter how wonderful and profitable they are. When you are faced with the task of preserving and increasing the capital, it is advisable to include various investment tools in your portfolio. For example, these can be HYIPs, PAMM accounts, trust management, and so on.
At the same time, you should not simply distribute your money to different spheres in an arbitrary order. You need to give the smallest amount to the most risky investments, that is, to create a kind of pillow that will make a profit when high-risk cases will bring a serious minus.
Summarizing the information described in the article, I note that the diversification of risks is a principle that works in various spheres and will always be effective if it is properly organized. Well, if diversification has not worked for you, then it’s not a matter of strategy, but of yourself – read, learn, and simply – follow me. I wish you only successful and profitable investments!
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