Investing almost always carries certain risks to your fund. If the investment is made in HYIP, then the risks can be enormous, as the HYIP industry itself is extremely volatile and unpredictable. But even in such an incomplete environment, the risk can be significantly reduced through diversification.
Don’t put all your eggs in one basket, the brother said, and the British, for those who are successful in financial matters, are absolutely right. This phrase fully reflects one of the main principles of investing in HYIPs, known as diversification. In summary, what not everyone hears, lies in a very simple sense
Diversification – reducing financial risk due to capital distribution for some investment projects. The essence of this term can be explained with a simple example, quite common in hype. If the investor owns $ 1000 and invests them in a project he likes, then in the case of a scam, he will be left with an empty pocket and an annoying insult on his mind. If the investor could think more globally, then he would invest in equal stakes in ten projects and, in the case of fraudulent any exaggeration from his portfolio. Losses will be compensated for by income from others.
As you can see, there is nothing complicated about diversifying funds and, if you think logically, this approach really reduces the possible risk to the minimum. But, again, the risk can be minimized through capital allocation only if you choose really high-quality projects that have a good chance of working – if you collect a full slag portfolio, then I Sorry, but diversification won’t work.
It is also important to be able to distribute stocks in your portfolio among low-risk and high-risk projects. It is known that fasts carry a greater risk, while low-profit projects are safest. This fact should be used in the selection of projects to diversify. At the same time, the majority of the 70-75% capital should be invested in more reliable tools, for example, low-income and middle-income projects, meanwhile, reserve the rest of the money. 25-30% of the bank.
Guided by the principle of diversification, don’t forget about other important investment rules, which together greatly increase your chances of success:
- Carefully analyze the projects you choose to diversify. Pay attention to the technical aspect of the project, its marketing, promotional reviews, opinions of other investors.
- Be sure to go to the project via a referral link, because if you get a refund you’ll go to breakeven much faster, which means you reduce the risk of losing money.
- Don’t try to pick as many projects as possible in your portfolio – let have a few of them, but you’ll be as confident as possible in their ability to work.
- Select recently started projects. Also, you should not fly into the project without figuring out what it is.
- Using the chitran tactic in projects with the greatest risk (high interest rates) and high interest rate reinvestment tactics inspire confidence.
- Try to choose projects with the shortest possible investment period, as well as projects that return a deposit in payment, and not at the end of the term.
Be sure to keep a record of your investments and analyze the results over a certain period of time (weeks, months). Draw conclusions from the collected data, define the categories of projects that deliver the maximum share of income – for those sites, it is possible to increase the bank’s percentage. For example, if middle income projects show better performance and only incur losses, then the number of profitable projects can be increased by the cost of withdrawing from the unprofitable cell of the portfolio. invest. At the same time, it is important to keep in mind that there is a really high-quality medium-benefit exaggeration that should be included in the list.
Diversification of funds is a fundamental method that has been tested by many investors who operate not just in the hype space. Be sure to use it so that your investments generate no loss