Diversification. Or how not to lose money?
HYIPs have become quite popular nowadays. The number of investors who want to make money on programs of this kind is growing, but not everyone can make a profit. This is due to the fact that HYIPs are also a high-risk type of investment. Only those who, ideally, have mastered HYIP investment strategies, studied their working methods, and regularly follow the investment rules, can increase capital in HYIPs, which, when used together, minimizes risks. In this article, we'll talk about one of the basic rules - diversification.
What does the word "diversification" mean?
Diversification is a variety of assets that allow you to minimize possible risks when placing investments in HYIP projects. In other words, diversification is carried out by dividing your overall investment portfolio into parts that are invested in various projects. Splitting in this way reduces the risk of losing the entire portfolio, since the probability of closing all reliable HYIPs at one point 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.