HYIP - Why You'll Never Make Profit

Some statistics first. These are the projects I've lost my money in since last winter (if you're already a HYIP investor, you'll recognize most of them):

Genius funds, Nano money, Investment Forge, Stable Interest, Pirex fund, SAZA investments, 4Urearn, CSM finance, Mandarin-invest, XAGA Enterprise, Atlantis Mutual, Verifield, Waterinvestment, The Kapital, Onedailypro, Ptvpartner, Extrareturn, Aim Trust, Oico, Investproxy, Vaultinvestment, Infinitiva, Afon Business, Panamoney, Moneyplus, Forge of Income, White Fund, Euro Nano Money, Atlant Investments, Diamond Trade. All of them have been considered by experienced investors as reliable and not so risky . Total loss ~7K.

So, why this happened to me? Before I became a HYIP investor I visited a lot of monitors, forums, private investor's sites, and read lots of testimonials, advices etc. The main strategy was to reinvest and diversify and your risks would be as low as possible. With a portfolio of ~20 projects and 1-2 dead projects per month as an acceptable risk, the idea of making money still looked real enough. And I tried.

What happened next: the new projects that I reinvested my profit in started to shut down, the old and long-lived ones also followed them later. Step by step I became prisoner of this situation. The portfolio is getting smaller and smaller as 1-2 projects go down weekly, I try to reinvest in new ones with the view of keeping my portfolio as thick as before. And I'm doing so NOT because I want to make more money, but because I don't want to loose what I still have. It is not your choice - to invest or not to invest - you simply have to keep reinvesting, otherwise you will lost all your money. Is it clear enough? I'm not even speaking of withdrawing and using your profit for yourself, you just cannot do that as you must keep it invested and reinvested. Again and again and again... Provided you're dealing with HYIPs offering 1-1.5% daily, not the short-lived ones who promise 3 or 5% or more.

But this is not the worst thing. The worst is that your portfolio is still getting smaller and smaller day by day - you can't keep pace with the "dying" HYIPs - you lose more and earn less.

Now let's take some examples:
1. You invest in a nice looking "reliable" project that pays 1.5% daily and is online since 3 months. In the HYIP world it looks very promising from the point of stability and trust. So, your principal (initial deposit) would be covered in 3 months (1.5% x 22 working days = 33% per calendar month x 3  = ~100%). Let's suppose that the project lived 3 more months, what is frankly very rare today, hence it's already 6 months online - the age when 90% of HYIPs go down. Maybe you want to take your principal back? Of course not! Even if it shuts down 1 month later, your profit will be 33% for 4 months of investment, as your principal will be lost too. Please note, that's the best scenario. 7-8 projects from 10 you've invested in will be gone after 3-4 months. And you'll be out of pocket.
If you try to make an early withdrawal of your principal (not many HYIPs offer that opportunity), you'll be deducted a 15-30% commision + your total profit. You will lose money and time and... you'll be out of pocket, again. Try to invest in a project offering 0.5-1% per day to reduce your risks - how long you'll be waiting to compensate your principal? 5-6 months? You know what will happen then?
If you don't trust me, just visit the popular monitors and you'll see how many projects are online and paying over 6 months. Only few out of hundreds.

2. You invest in a long-lived HYIP which is online over 7-8 months. OK. The chance it goes down tomorrow is 80-90%, cause this is already a "risk group". The money from the first wave of investors is running out, the new ones are not so numerous as before. Of course, the HYIP's admin won't let himself go without a good snatch, and he won't be paying you if he sees that his own pocket's running dry.

3. You invest in a brand new project which is about 1 month or just a couple of weeks online, posting a lot of advertisement on monitors and forums, and looking very stable. Of course, you want to get in earlier, make profit and take back your deposit. You know, after some losses in above mentioned "trusted", "reliable" and long-lived HYIPs, a lot of people think like that. What happens in this case? Within a short period of time the admin will get thousands, even tens of thousands of $ from hundreds of investors, his objective will be complete quickly enough and he will just go. That's it. Why keep running the project if you can close it with the huge money you made, and open a new one a week later? Am I wrong?

The trends:
The times when HYIPs could live long enough, up to 1 year or even more, are gone. Why? The greed is the answer. Running a true business, winning confidence, becoming reliable, earning money and having lots of dedicated partners and clients being in profit thanks to you? It's a long way full of work and efforts. It's much more easier to steal, rob and go. That's the actual trend and it's getting even worse. I know that a lot of people made profit thanks to projects existed 1-2 years, 400-500% and more. That is true, but that is history. Today it's just a gamble, like casino, like Russian roulette, no matter is it about 0.5% or 5% per day. The faith is still strong enough but is fading quickly, as the facts are showing the contrary. There are no more strategies, approaches or signs that one or another HYIP would keep on long enough. Every little unprofessional admin has the opportunity to implement SSL, Ddos protection on his penny site and tell the stories about his unrivaled experience in Forex trading, investing in oil, gas, water, air etc...

A couple of tips and precautions:

• None of the HYIPs deals with Forex, true investments or has other sources of income but the money of new comers. Just because it's too complicate for them. Forex is a very aggressive, high risk area where NONE of the players can be sure he/she will be in profit, especially to pay 20-30% of stable interest per month to someone else above his/her own income. If you don't agree, show me the proof. You have my contact. Most of the projects pay only on business days mon-fri, it is not because they're traders, it's because they want to keep your money longer. The same for holidays, days-off. The scam Aim Trust had so many days-off that I've counted about 2 months of them in total per year! Forex charts are usually borrowed from other sites, just a simple script looking very convincing.
• A HYIP lifespan today can be calculated very easily: you take the average daily interest rate and multiply it by the number of days needed to get 100%. That's the term of the principal return. Which will never be returned...You'd better take it as a rule, because if the HYIP doesn't go down after that cycle, it's just an exception, one from hundreds. Are you ready to lose much money looking for that exception? No way.
• Licences, legit registrations, certificates, any "official documents" shown as a proof of some legit activities, are made in Photoshop. NONE of the HYIPs will show you ANY legit document, nor will tell you where it is actually located. Don't ask me why.
• If you already invested, and the HYIP starts sending you emails, offers with new opportunities of making profit - that means that the project's running out of money, it's a sign it will go down shortly. The same thing for script improvements, new technologies/systems being implemented and delays in payment involved, new interest compounding options, any other attempt to keep your money in the project. Even an unexpected message that "they are OK, and things go just perfect".
• Don't fall for much advertisement on forums and monitors. Before, it was considered as the wish of living longer and serious intentions, because ads are expensive enough. The more ads, the more reliant investors, the more money to be taken away quickly and easily.
• Monitors are the places where you can see a lot of HYIPS, that pay the monitors to be shown to public, to tell monitors what to show and what to do for money. Nothing else. Of course the HYIPs pay them your money instead of paying you.
• Forums are the places where people talk a lot about projects but none of those people, newbies or experienced, know what will happen tomorrow. They post their payment proofs today, tomorrow they don't, as there are no more proofs. Then people go to a new HYIP.
• And the last thing, and try to get it clear: you will never make profit with HYIPs in the long-term, maybe you'll make some money today, maybe tomorrow. Lucky you are! The sure thing is that you will be losing more than you will earn. Of course, there are exceptions, and some experienced investors still can make profit with HYIPs, they are 1-2%. Do you think you're one of them? Just try!