What is Diversification as applied to HYIPs?

The HYIP program come and go,it's everywhere .The referer always claim that "this is honest","that's paid me since ..."Can we believe it ?How do we protect our self be scammed by those " imitates forex investors".Well,one of the method is ,Try to Diversification your HYIPs.

intro by:http://earningsource.blogspot.com/

What is Diversification as applied to HYIPs? Diversification is a technique that reduces the risk by spreading your portfolio over many programs to avoid excessive risk imposed by HYIPs. In simple English this means " do not put all your eggs in one basket". There are certain issues you should consider on how to diversify you portfolio over different programs. Let's see these issues one by

one: Determining how many Programs You should have: Obviously diversifying over 10 programs is better than investing into 2 programs. It is even better to have 20 programs instead of 10. But, it is hard to find 20 solid programs. There fore , The bottom line for diversification , as far as HYIPs is concerned is that , you have to diversify you portfolio over researched programs as maximum as possible. But, I let me to clarify one thing; Diversification does not mean spreading your portfolio over scam programs. Always make a diligent research before you diversify you portfolio.

To put it briefly, diversify your portfolio to at least 5 to 10 well researched programs.

Mixing between Old and New Programs: You may have favorite programs performing well for long time, programs which you have more confidence, well researched and what you think are reliable. But,there is a concern in HYIPs arena; there is always a calculated risk even with the most solid program. It is hard or impossible to exactly determine the age of a particular HYIP. For this reason, it is always recommended to mix your favorite HYIPs with new programs.

Remember what's HYIP mean.It could turn to"Horrible Yegg Investment Plan"anytime if we not take it seriously..


Ref:http://www.hyipinsurer.com
Edit:http://earningsource.blogspot.com/
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