Mistake 4: Not getting your original spend back quickly
I'm sure you've heard this a number of times before. Always get your seed money back as soon as possible.
Given the fact that most HYIPs tend to fold within 6 months, this does make sense.
Figuring out when to start withdrawing your profit is more of an art than a science.
For example, should I deposit a large amount and start withdrawing straight away? Or deposit a small amount and start withdrawing after one month?
This really depends on how long you think the HYIP is likely to last and how long it takes to get your original spend back.
To date, all HYIPs tend to either slow right down: like one of the original cyclers that has been around for 2 years and now has a 200 day+ cycle time; or they go out of business within 6 months.
Side Note: I believe some HYIPs have good intentions but fail to manage the business side of things correctly so they close shop. I don't believe all HYIPs that disappear are scams.
Given the empirical evidence it's best to plan your strategy based on the worst possible scenario.
A rule of thumb that I've heard thrown about is to withdraw your original investment as soon as possible then from there on keep half the profit and reinvest half.
I believe having a clear monthly plan is key to being successful with HYIPs. At the start of every month I ask myself the following question:
"What If one of my main investments goes under this month... will this be a problem for me?"
Based on the answer I can decide how much I should withdraw, how much I should reinvest and what new HYIPs I should join.
(article taken from www.hyipmistakes.com)
1 comment:
Sure, here are some additional common mistakes that investors make when dealing with high yield investment programs (HYIPs):
Lack of Due Diligence: Many investors make the mistake of not conducting proper due diligence before investing in an HYIP. They often fall for enticing promises of high returns and invest their money without thoroughly researching the company, its track record, or its management. It is crucial to do your due diligence by researching the company's background,checking its financials, and reading reviews from other investors.
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