My HYIP Escapade » Q&A

Is there such thing as the best HYIP?

Casey — Mon, 15 Oct 2007 22:27:36 +0000

This is a funny question, but the answer is not might be as funny as you think.

This question is very relative, if you ask me which is the best HYIP today, I might answer Minvestment or OpenTrade

If you ask me this question again in a few weeks, it might change. That is because the best HYIPs are always the HYIP that has been paying or if I was in profit as of today, it is the best HYIP for me. But it is not necessarily means it the best HYIP for you.

If it does not pay me anymore or if I am not being paid, then it is not the best HYIP for me anymore

I guess that is the reason why no one says that 100% of all HYIP programs are scam but rather 99% or even 99.9% of all HYIP programs are scams.

Because the 1% or 0.01% programs out there are the best and are paying.

So the best HYIP for me are the ones that are paying and I am in profit with the program.

Easy answer….

So what is your game plan?

Casey — Thu, 22 Mar 2007 20:11:31 +0000

I guess this answer will have to be reveal later…

Why am I involved in HYIP?

Casey — Thu, 22 Mar 2007 20:08:40 +0000

Well, I look at HYIP in a different light, if you have read my article on ‘My Reason for HYIP’ you will come to understand my approach.

To further elaborate on that article, I took out the word ‘invest’ and replace it with the word ‘play’ which means I do not invest in HYIP. Rather I play the game of HYIP.

In any game, we play to win. So I play this game to see if I can win from these programs may it be scams or ponzis or even legitimate programs.

For $1 (more or less), we went out to buy a lottery ticket, so what did we just buy? We bought hope, hope that we are the next one to win the lottery.

We go to the casino to with $100, do to what? To try out luck and see if we can beat the house. Even though we know that the house always wins. Some say it’s for the excitement. Casino or gaming is not categorized as under the entertainment industry for nothing.

If HYIP is not safe than why do people still want to invest in HYIP?

Casey — Thu, 22 Mar 2007 20:07:38 +0000

Well, let me ask back the question in a different manner, if we know that in the gaming business or industry such as Casino and the Lottery, the House always wins. Then why do people still want to try their luck and gamble? Or if the chance to win the national lottery is a million to one, then why the heck do people play the lottery?

The answer is quite simple, because people by nature are hopeful. They hope that that there is a legitimate opportunity out there.

Another nature of people is that we are most of the time ignorant and greedy and will always seek out more than what they have presently, like our current interest rates in our fixed deposits or our mutual fund/unit trusts. The returns can’t be seen instantly.

HYIP provides the return in a very short period of time and this is what entices people to invest in these programs even thought most of them know that it could be a scam or a ponzi, they will continue to put money in hopes that one day they will find a good and legitimate opportunity or program.

Why do they need us to invest in their programs if they can generate such great returns?

Casey — Wed, 21 Mar 2007 03:43:42 +0000

One single word…. Leverage.

With bigger capital, they can not only diversify their portfolio but also allow them to make a greater return on other derivatives(futures) financial instruments such as foreign exchange, index futures, commodities futures etc etc.

What I mean by leveraged financial instruments is that, most of these instruments allows the trader or investors to control a bigger amount on contract with a small ‘goodwill’ or marginal deposit in a financial institution.

For example, in forex investing, with a USD1,000 margin deposit, an investors can control as much as USD100,000 worth of foreign currency. If they have say USD100,000 margin deposits the investors can control a whooping USD10,000,000 worth of foreign currency. This is the same for other derivatives instruments,

To further explain in a bit of detail, let’s assume an investors purchase EUR100,000 at the EUR/USD exchange rate of 1.18. Meaning he is controlling USD118,000 with only USD1,000 security/margin deposits.

After a certain amount of time the exchange rate between EUR/USD is 1.2500. If the investors sells his/her holding it means that he should get back USD125,000. Thus, the difference is USD7,000 which belongs to the investors.

That is almost 600% return!

But in reality, most great investors can actually make as much as 120% return on their portfolio.

Anyway, coming back to the question, if the program owners can seek other investors to pool in so that he can get higher margin he can actually control more equity so that USD7,000 can actually be USD70,000 or USD700,000 depending on the pooled amount.

That is what it means by leveraging on investor’s money…..

How can you tell if it’s a legitimate program?

Casey — Wed, 21 Mar 2007 03:42:46 +0000

Well, you can’t really tell it apart from the first look at it for the simple reason because these programs are not or could not be regulated. The only way to tell them apart or at least have a better feel for what they really do is to do some research on the program, where is it located, which country is the company registered at, so on and so forth.

Again, because it is not regulated, the program owners do not need to submit an audited account report or company reports to any securities commissioner or any other institution. Thus, most investors are unable to determine if these programs are legitimate or not.

How do HYIP generate their income?

Casey — Thu, 28 Dec 2006 10:00:00 +0000

Well, the owner of these programs usually invests in foreign exchange, stock futures, index futures, commodities or commodities futures and any other financial market instruments to can generate a good return on their portfolio.

Some programs will derive their earnings from sports betting, website advertising, casino gambling, webhosting, so on and so forth. These are the minority sites. Most program sites claims that they generate revenue from forex trading.

And if it is a ponzi scheme well, they generate income suckers…..

So why do you still continue with your escapade?

Casey — Mon, 13 Nov 2006 00:24:41 +0000

That is a tough question, if I do ask this to myself. Well, I am asking this question to myself.

I absolutely have no idea. Ok… maybe I do

Well, after my first experience with HYIP I actually did give up on this program with my tall between my legs and accepted the fact that all HYIPs are scams and ponzi.

Then I stumble upon a site which was actually promoting a particular HYIP site. This website that is promoting this HYIP is actually quite reputable. So it kinda hit to me that there are legitimate HYIP around.
We just need to search for it.

On the other hand, I had taken the site promotion of this program with a pinch of salt. I thought maybe I should try again to see how far I can succeed in HYIP.

So far I have been monitoring this particular program and it seem to be still running since 2005 with some major changes in it’s policies and site. Nothing last forever. So when I do get around to invest in this program I do hope that I am not getting the tail end of the cycle.

Further to that, I have also been just reading about HYIP and like trading, I need a strategy. With a strategy in hand I believe I can make some money from HYIP whether it is a scam or ponzi or even legitimate programs. Better than charging blindly like I did before with only 20 bucks….

Is Investing in HYIP Safe?

Casey — Tue, 07 Nov 2006 00:56:10 +0000

It’s difficult to answer that question, the first hurdle is already trying to identify if the program is legitimate or not. That is itself a risk.

They say no pain no gain, no risk no gain either. So if HYIP can provide you that much in gain, it means risk is high.

HYIP are very closely related to high risk portfolios. To continue from the answer on leveraging from the questions ‘Why do they need us to invest in their programs if they can generate such great returns?’, as great as it seems the return would be, if the program owner is not careful he could lose as fast as he gain.

Just imagine from the previous example, if the market moves against the portfolio, say the market EUR/USD exchange trades lower at 1.1100, which means he/she made a lot of USD7,000 and the investor has to cough up USD6,000 on his margin deposit.

So if we do are speaking in terms of legitimate programs, it is not exactly 100% safe because these programs can not in anyway be held accountable for your money if they made a lousy trade on the market, forex or whatever instruments and lost all the money that they are managing.
Further to that, most HYIP are ponzies anyway, so that in itself is not only illegal and it is definitely not safe.

If you want HYIP to be safe, then look for a program that might offer to you a contract when you deposit your money with them that has a clause that says ‘your principle amount will be insured from whatever loses due to the incompetents of our forex trader specialist’ or something like that, only then could you say that investing in HYIP is safe. But that would be very rare indeed.

{mosgoogle}

What is HYIP?

Casey — Mon, 06 Nov 2006 09:00:00 +0000

HYIP stands for High Yield Investment Programs. Which literally translate to scam, ponzi scheme, don’t go near it program. Sometimes it can be said to be High Yield for Scammers Program. High Loses for Suckers Program. I want to Make Money from you Program, Scammer R Us Program…. and I actually can go on and on….

Ok… well maybe I have just got carried away. Well, HYIP does stand for High Yield Investment Programs. It is a program that usually pays out better returns than your normal local financial institution, which includes your normal mutual fund or unit trust funds.

The only problem with these programs is that it is not regulated and because of that most of these programs are considered to be ponzi or scams. While some of them are legitimate programs, most of them are not.