Investing almost always carries certain risks for your funds. If the investment takes place in HYIPs, then the risks can be huge at all, since the HYIP industry itself is extremely unstable and unpredictable. But even in such an inadequate environment, risks can be significantly reduced by diversifying funds. An English proverb says, “Don't put all your eggs in one basket,” and the British, as financially successful people, are completely right. This phrase fully reflects one of the main principles of investing in HYIPs, called diversification. Under the abstruse word, which not everyone has heard, there is a very simple meaning.
Diversification - reducing financial risks by distributing capital across several investment projects. The essence of this term can be explained using a simple example, which is quite common in the HYIP environment. If an investor owns $ 1000 and invests it in a project he likes, then in the case of a scam, he will be left with an empty pocket and an annoying resentment in his soul. If an investor knows how to think more globally, then he will invest in equal shares in ten projects and, in the case of a scam of any HYIP from his portfolio, the losses will be covered by income from others.
As you can see, there is nothing difficult in the diversification of funds and, if you think logically, then this method really reduces possible risks to a minimum. But, again, you can minimize risks through the distribution of funds only if you select really high-quality projects that have a chance of good work - if you collect a full portfolio of slag, then I'm sorry, but diversification will not work.
It is also important to be able to distribute shares in your portfolio among low-risk and high-risk projects. It is common knowledge that fasts carry more risk, while low-income projects are the safest. This fact should be used when selecting projects for diversification. At the same time, most of the capital in the amount of 70-75% should be invested in more reliable instruments, for example, low-income and medium-income projects, while the rest of the amount of 25-30% of the bank should be “reserved” for fast.
Being guided by the principle of diversification, do not forget about other important investment rules, which together will significantly increase the chance of success.
- Thoroughly analyze the projects that you are selecting for diversification. Pay attention to the technical side of the project, its marketing, evaluate the promotion, the opinion of other investors.
- Be sure to enter the project using the referral link, since if you receive a refback, you will go to breakeven much faster, which means you reduce the risk of losing funds.
- Do not try to pick up as many projects as possible in your portfolio - let there be several of them, but you will be as confident as possible in their ability to work.
- Choose those projects that have started recently. At the same time, you should not fly into the project without understanding what it is.
- Use cunning tactics in projects that pose the greatest risks (high-interest) and tactics for reinvesting interest in HYIPs that inspire confidence.
- Try to choose projects with the shortest investment terms, as well as those that return the deposit in payments, and not at the end of the term.
Be sure to keep records of your investments and analyze the results for a certain period (week, month). Draw conclusions from the data obtained, determine the category of projects that bring the maximum part of the income - for such sites, the percentage of the bank's amount can be increased. For example, if middle-income projects showed the best performance, and fasts only incur losses, then the number of profitable projects can be increased by funds withdrawn from the unprofitable portfolio cell. At the same time, it is important to take into account that you have a really high-quality average interest HYIP in mind, which should be included in the list.
Diversification of funds is a fundamental method that has been tested by many investors operating not only in the hype space. Be sure to use it so that your investments generate income, not losses.