Friday, January 15, 2010

15 January 2010 - 5 Common Newbie Mistakes in HYIP

Hi my readers! Today I would like to try something different, fresh content that's different from the same ol' "reviews and interviews" that I think has definitely bore some of you guys. I just thought maybe you would enjoy useful tips that you can actually apply in your investments, rather than boring reviews that no one reads at all. Lol..

Anyway, I've observed that there are 5 common mistakes that investors often make, and those same 5 mistakes have plagued many investors as well. Somehow, it seems people don't put too much thought into their methods of investing, and that has probably caused them to lose a lot of their hard earned cash.

Mistake #1

Invest without recognizing their investment goals
This is one of the most common problems that many investors face when they involve themselves in HYIP. It is of no secret that HYIPs are, essentially, ponzi schemes -- a "quick-in, quicker-out" method is the way(although not THE ONLY WAY) to play in most short-term High ROI programs. Some investors invest without thinking how much they're risking when they push the invest button.
Eg: Say a program offers 120% after 5 days, and your investment will be returned upon expiry. Most newbie investors are tempted to invest all their funds into the program when they see that people are posting their payouts and such.

This is what caused most newbies to fall victim to HYIP scams. They invest without thinking how much they want to earn, how much they're willing to risk, and what are the prospects(or longevity, for that matter) of the program. Some newbies expect the programs to last forever. Thus, they keep reinvesting all their profits along with their capitals, something I'd like to call building castle in the air. Why? Because oftentimes, these sites don't actually make it till withdrawal day.

Message to newbies: Think about how much you want to earn, how much you're willing to invest, and STICK TO YOUR PLAN no matter how attractive or stable the program may look.


Mistake #2

Hasty in Making Spends(Deposits)
Perhaps this is one of the killer mistakes that has consumed many unsuspecting victims. I have met countless young investors who attempt to invest all their funds in one single high ROI HYIP, only to find at the end of the day that the program collapses before the completion of the first cycle. In fact, this mistake is not exclusively made by newbies; some senior members commit such a mistake as well, only not as often. However, we all are humans, and we're prone to give in to greed. How many of you have seen a program that bears an SSL encryption on the page, equipped with the most popular payment processors and wears a coat of beautiful script that has scammed even though everything seems to run perfectly fine? I'm sure you can identify with such a case, because I sure do!

Message to newbies: Even though the rule of thumb says "get in quick, get out quicker", it's always wise to wait a few days (check out the site, try the support button, talk to the support center, look up the site's information etc.) before you commit. As always, it's your own money, so whether you throw it away or you make more of it depends entirely on you.


Mistake #3

Bad Security
This is a somewhat critical mistake that I've made quite often in the past--I had always used the same passwords for the investment programs I joined. Of course, this took quite a heavy toll on me as I had my Liberty Reserve account hacked into and all my funds in there stolen. Therefore, be careful about security because no matter how much you may earn from the programs, it means nothing when a hacker, or sometimes a group of hackers, breaks into your account and sweeps away all your earnings. I have heard of malicious admins that use their members' info to hack into accounts to steal money as well! So you can't be too careful when it comes to security. Always play it safe than sorry..

Message to newbies: Change your passwords often! Don't use the same passwords for your emails and payment processors and investments. You never know who's tracing your internet footprints right now. We all know LR is a hacker-friendly payment processor, so try not to keep too much funds in there as well.


Mistake #4

Compound Too Early, Too Long
Someone had told me before, "Compounding is more of an art than it is science." I can't agree more, because you never know when you should or should not compound. And when you should, how many percent compounding should you go for? I've not developed a magical formula that could guarantee your earnings, but I've come up with several ideas that could probably maximize your profits while minimizing your risks.

Suggestion A: 0% Compound Until You Withdraw Your Principal. Many investors go by this rule, and even though it's the most commonly used, this doesn't mean it's the best. As a matter of fact, I find this to be the least profitable, although it is safe in terms of being able to recuperate some of your capital in the event that the program collapses prematurely. Nonetheless, HYIP is a form of high risk investment, therefore it is highly recommended to minimize your risk in such a field. Certainly not the best method out there, but for now, I would settle for security than unstable profit.

Suggestion B: 100% Compound 1/3 of Expiry Term. Example: If a program has a lock-in period of 150 days, I suggest compounding 100% for 50 days, and withdraw (0% compounding) for the next 100 days. In the case that the program pays 1% daily, you could've probably built up your capital to about $190. That means you've actually doubled your capital in 50 days, thus earning you twice as much in a day as compared to doing 0% compounding since day 1. Not a very viable method, even though you'll end up with higher profits at the end of the term. Best of both worlds, but this should only be used sparingly.

Suggestion C (Not recommended at all): 100% Compound Entire Term. This method substantially increases your profit, not to mention the risk increases twofold as well. Some investors like to thread along fine lines, and if they're right about a certain program, they usually reap much higher profits. Most people use this method when a program offers low ROI mid-term plans, such as 1% daily for 30 days. I've used the calculator to count the profit prior to this. And despite the fact that you're putting your funds in a lot of risk, the profit margin doesn't justify taking such high risks.


Mistake #5

Even if you miss out on this ship, there will be many more that will offer the same plans in the future, so don't worry!


Invest Like Ducklings Behind Mother Duck
I've seen many newbies who join a certain program that has been online for 1 month and pays 150% in 15 days for a simple reason: They see many people are getting paid. Those people who post payments can be either paid posters, or they've been in the program for so long that they're basically just playing with their profits! When you see a program that pays such high ROI in only 15 days, that means it's a short-term program! Signal here: It won't last that much longer by the time it's a month or two old! Of course, there have been programs that have outlasted their competitors that offer similar payouts, but those programs only come once in a while, and they eventually collapse in the end as well. Even if you miss out on this ship, there will be many more that will offer the same plans in the future, so don't worry!

Message to newbies: Be careful when you join a program! Never invest because other people are; be assertive and make informed decisions yourself!


Above are the 5 mistakes that newbies always commit, and hopefully the tips I provided will help you to make better decisions next time.

P.S: Please subscribe if you think this post has helped you in some ways :D My blog needs more support from you guys! Thanks!!!!

Other News:
InvestJoy is now officially 10 days online, and the admin has sent out a newsletter announcing that the 150% after 15 days plan will be forfeited at the completion of 1st cycle. Of course, if you invest right now, the plan will still be honored. The admin will announce a different payment plan as soon as the first cycle completes. This is *not* a red sign, as the admin had announced on first day that the plans are temporary and will be changed at a later date to ensure the site's sustainability. Here's the newsletter:
Hello members,

This is the Friday's Newsletter from InvestJoy, thanks for being with us. This week was excellent, the program is getting estabilished as a reliable Hyip and I already get positive votes from members regarding my work in the head of InvestJoy. Thank you very much, I keep working to make this program better and better.

Paul from Money-news-online published an interview with me in his site, for those who still did not read please follow the link:

http://money-news-online.com/blog/2010/01/13/13012010-interview-with-the-admin-of-investjoy/

As I told in the past days I have interesting news, it's about the new release from Grube Investment (or Werner Grube, if you prefer) and a small change in InvestJoy program. Ok, following my initial planning I will terminate the Plan B: 150% after 15 days on Monday, exactly after 1st cycle is completed, 15 days after launch, it's an adjustment once we will have two investment sites online. If you have active deposit in this plan it will remain active until expiration, if you want to make a deposit in this plan do not lose time, on Monday it will not be an option anymore. In the next days I will announce a new program, what I'm doing is to migrate the expiry plan of InvestJoy to the new program, but it won't be exactly the same return (%).

In this moment we already have a nice membership, 768 members so far, and I think we need a program that serious investors can join and invite their social network. Some investors prefer programs with different style and plans, the new program will give us more possibilities for investment plans. We will have two programs running simultaneously, the new Hyip will offer new plans and more professional layout, but with the same quality and communication of InvestJoy. You will know the name of new proram when it has been launched, on Monday or Tuesday, for now you can call it InvestJoy2.

Some members are experiencing problems to access Investjoy website, if it's happening to you please use this address: http://208.64.122.169

Thank you very much for your support in the forums and monitors, I still did not contact the members interested to join the support group yet because I think it will more useful when new program is launched. See you in the next newsletter!

Werner Grube
http://www.investjoy.com


I've received my Support Contest bonus from IdealInv, which amounts to $10. If you have posted more than 5 posts on ANY forum (Talkgold, Moneymakergroup, or Dreamteammoney), and have placed your referral link on your signature, then you are entitled to receive a $10 bonus. This offer only applies if you've joined for a week. The bonus is still effective, so get posting right away!

GouldsInvest, GeniusFunds, Infinitiva, CedexInvest, and Arbyfund(New) have paid me today. Oh, and a new autosurf called UnderWaterSurf has paid me my first payout today. This one's really interesting, and I will post a review soon about it.

That's all for today folks! See you tomorrow!

As today I didn't post any reviews or interviews, here's today featured program!!!

And the program is.................................CommonSenseInvest!!!!! Congrats!

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