The Second HYIP and Sustainability
Found another HYIP that pays 2% per day for 10 days with a capital of USD100, upon which profits is returned together with the capital. So far all HYIPs with such low capital outlay have not lasted long (unlike the other one I have invested with since July 2015), due likely to the fact that anything more than 1% per day is going to be difficult to sustain, and that is with FOREX being used as a trading platform.
For someone like me, who was used to comfortably doing 1-2% a month selling options in the US stock markets in the past, the amount of leverage those guys are getting into is really incredible and mind-boggling. I have learnt to keep an open mind, however - because there are many who found my 1-2% a month equally mind-boggling. As I began understanding the world of high leverage, I learnt that they can be done - just not done by everyone.
All forms of high-yield investment programmes have to deal with the issue of draw-downs. A move against the predicted model, a long-tail, a black-swan event, could all wipe out a considerable amount of capital, making it difficult, if not impossible to keep to the programme's promise to its investors. And when that happens, not many fund managers do the right thing, to be open with their investors and close the fund or stop the payout. Many of these fund managers eventually turn to running a ponzi scheme in order to milk their investors for as much as possible before they run.
Unlike the easy 5-8% a year that most registered mutual funds offer (and even that return is not guaranteed, to protect the fund's viability), the world of HYIP is run on different rules, and require a different kind of personality to play it. Are you one of them?
Contact Sensei Michael if you are interested to find out more.
For someone like me, who was used to comfortably doing 1-2% a month selling options in the US stock markets in the past, the amount of leverage those guys are getting into is really incredible and mind-boggling. I have learnt to keep an open mind, however - because there are many who found my 1-2% a month equally mind-boggling. As I began understanding the world of high leverage, I learnt that they can be done - just not done by everyone.
All forms of high-yield investment programmes have to deal with the issue of draw-downs. A move against the predicted model, a long-tail, a black-swan event, could all wipe out a considerable amount of capital, making it difficult, if not impossible to keep to the programme's promise to its investors. And when that happens, not many fund managers do the right thing, to be open with their investors and close the fund or stop the payout. Many of these fund managers eventually turn to running a ponzi scheme in order to milk their investors for as much as possible before they run.
Unlike the easy 5-8% a year that most registered mutual funds offer (and even that return is not guaranteed, to protect the fund's viability), the world of HYIP is run on different rules, and require a different kind of personality to play it. Are you one of them?
Contact Sensei Michael if you are interested to find out more.
[…] other HYIP I have started (which I have expressed doubt in my previous post) has collapsed. There is a reason why I only invest a tiny amount for such HYIP. After this […]
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