Diversification. Or how not to lose money?
The Hypes have become quite popular nowadays. The number of investors wishing to earn on programs of this kind is becoming more and more, however, it does not turn out to be profitable for everyone. This is due to the fact that HYIPs are also a high-risk type of investment. To increase the capital in haypah it is possible only to those who ideally mastered the investment strategy in haypah, studied their methods of work, regularly observes investment rules, which, when combined, reduces to minimizing risks. In this article, let's talk about one of the basic rules - about diversification.
What does the word "diversification"?
Diversification - a variety of assets, allowing to reduce the risks to a minimum when placing investments in high-yield investment program. In other words, diversification is carried out by dividing your overall investment portfolio on the parts which are invested in various projects. Separation in this way reduces the risk of losing the entire portfolio, since the probability of closing all reliable HYIP at one time is very small.
What amount of HYIP is optimal for diversification?
If you take note of the majority of circumstances, for example, the number of employees stable projects, then the best solution is to choose to diversify order 6-10 programs. It follows that with an increase in the number of project risks are reduced considerably, but added to the portfolio of projects of poor quality and unreliable absurd and meaningless. For this reason we recommend to stick around 10 projects for the dissolution of the capital.
Fresh or long-playing HYIPs?
The ideal strategy for each investor will be the diversification of funds between freshly baked and full-length project. Of course, working with proven project the most pleasant, but it should be remembered that the HYIPs do not exist indefinitely. Just so you should choose a long-lasting HYIP and very fresh with excellent potential.
What should be the amount of the deposit to invest in HYIPs?
Between the new and proven HYIPs chosen the most reliable for the subsequent diversification. Now there is a logical question, how much to invest in a particular project. In this case, trusted HYIPs deserve better trust, therefore the share of the contribution for them is allocated more. But here you also need to carefully allocate capital, because Open a deposit in one project at 50% of the portfolio, and the remaining 50% scatter on the rest is not recommended. Discrepancies in the amount of investment should not exceed 30%, depending on the level of reliability of the project. For example, in a reliable HYIP, the size of your investment was 150 $, then the new ones should be paid 100 $.
Such an approach is not the best investment, but most standard. Certainly there are investors who have much more experience and conduct a more thorough analysis of the project, allowing more precise calculations can display and evaluate the level of risk. You also need to take into account the individual qualities of the investor and his intentions, conditions and amount of capital projects.