Compounding versus not compounding your HYIPs earnings

Most HYIPs offer the opportunity to automatically reinvest your earnings. This system is known as Compounding. Compounding factors for most HYIPS are often between 10% - 100%; while 0% is used to turn off compounding. Some HYIP investors chose different compounding factors to increase their earnings or principals. Some may also be tempted to invest more money in same HYIP while the current tenor is yet to elapse. This is an indirect way of compounding.&

Questions often arise whether to compound daily HYIP earnings or cash out. Usually the temptation to compound is huge since the HYIP investment is of money one could afford to lose. Hence, with the end in sight, some investors go for the big 'payday cheque' with 100% compounding starting from day one till the last day.

But while compounding may potentially increase one's HYIP earnings, the high risk nature of HYIPs demand that the risk be gradually reduced by daily taking ones earning until the initial investment is recouped. When this is done, it is still a wise move to choose a compounding factor that will guarantee you some profit. A 50/50 compounding factor will at least enable you take some of the income as profit, after you might have taken out your initial investment.

All HYIPS will eventually bust! Balancing the risks and rewards is very critical in determining how successful you are in your HYIP business. So rather than increasing the risks and uncertainty by compounding, aim toward recouping your initial investment by taking you daily earnings.

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