So far in this journey, I have treated my HYIP adventure as a business. For a business to be successful, some ground rules are very important. We have looked at rules that enable you pick the right HYIP, and the ones that help you protect yourself from inevitable losses by taking your daily earnings. I also shared some lessons and proposed a few strategies.
In advancement of the strategy of spreading your risk by portfolio diversification, permit me to introduce a 20th century mathematician, Vilfredo Pareto. In 1906, Vilfredo Pareto suggested that 80% of Italy's wealth is held by 20% of the people. This postulation formed the focal point of the Pareto Principle - the 80/20 rule.
How does this apply to HYIP you may wonder? In the first case, I mentioned rules and strategy in business. And since HYIP is a form of business, an investment strategy for diversification is crucial in setting the foundation for your overall financial objective as you diversify your portfolio.
There are a number of ways 80/20 can apply to your HYIP investments strategy. For starters, it is a common practice among veteran HYIP investors to divide their total exposure into 80/20 percent. Since experience also reveals that the bulk of income from HYIP comes from the long term HYIPs, it then infers that 80% of your overall exposure should be invested in the long term HYIPs, while 20% should go to the short term ones.
When the long term HYIPs are identified, a variant of the Pareto principle suggests that not more than 20% of the 80% should be invested in a single long term HYIP. While not more than 20% of the remaining 20% should be invested in various short terms HYIPs.
For instance, let's say your total budget for your HYIP investment is pegged at $200. 80% of $200 equal $160. This $160 should be reserved for the long term investments, while the remaining $40 should be invested in the short term HYIPs.
Since not more than 20% of the $160 should be invested in a single HYIP, invariably then, each long term HYIP should not have more than $32 investment. This implies that the $160 should be split among 5 good long term HYIP (at $32 per HYIP). The same method should apply to short terms HYIPs you have identified out for investment. This means that the remaining $40 should be shared among 5 of such HYIPs.
This suggested framework is by no means rigid, as I understand that individual risk appetite and investment objectives are different. Essentially, the benefit of this 80/20 rule as suggested in this blog is that it helps you to maximize your income, while at the same time spreading your risks among diverse portfolios. It also help you stay long enough in the business to make enough profit, or a living.
IThe individual HYIP investor is again reminded that HYIP is a very risky business, as pitfalls dot every stretch of the path. NEVER EVER invest in HYIPS what you cannot afford to lose, remains the first principles of HYIP.
Do you find this blog useful? Do you have a comment? Kindly use the comment box.
Related Topics:
Learn winning strategies of HYIP
Learn how to invest in HYIPS
Learn how to spot a good HYIP
How do I cash out my HYIPs earning?
What is HYIP?
In advancement of the strategy of spreading your risk by portfolio diversification, permit me to introduce a 20th century mathematician, Vilfredo Pareto. In 1906, Vilfredo Pareto suggested that 80% of Italy's wealth is held by 20% of the people. This postulation formed the focal point of the Pareto Principle - the 80/20 rule.
How does this apply to HYIP you may wonder? In the first case, I mentioned rules and strategy in business. And since HYIP is a form of business, an investment strategy for diversification is crucial in setting the foundation for your overall financial objective as you diversify your portfolio.
There are a number of ways 80/20 can apply to your HYIP investments strategy. For starters, it is a common practice among veteran HYIP investors to divide their total exposure into 80/20 percent. Since experience also reveals that the bulk of income from HYIP comes from the long term HYIPs, it then infers that 80% of your overall exposure should be invested in the long term HYIPs, while 20% should go to the short term ones.
When the long term HYIPs are identified, a variant of the Pareto principle suggests that not more than 20% of the 80% should be invested in a single long term HYIP. While not more than 20% of the remaining 20% should be invested in various short terms HYIPs.
For instance, let's say your total budget for your HYIP investment is pegged at $200. 80% of $200 equal $160. This $160 should be reserved for the long term investments, while the remaining $40 should be invested in the short term HYIPs.
Since not more than 20% of the $160 should be invested in a single HYIP, invariably then, each long term HYIP should not have more than $32 investment. This implies that the $160 should be split among 5 good long term HYIP (at $32 per HYIP). The same method should apply to short terms HYIPs you have identified out for investment. This means that the remaining $40 should be shared among 5 of such HYIPs.
This suggested framework is by no means rigid, as I understand that individual risk appetite and investment objectives are different. Essentially, the benefit of this 80/20 rule as suggested in this blog is that it helps you to maximize your income, while at the same time spreading your risks among diverse portfolios. It also help you stay long enough in the business to make enough profit, or a living.
IThe individual HYIP investor is again reminded that HYIP is a very risky business, as pitfalls dot every stretch of the path. NEVER EVER invest in HYIPS what you cannot afford to lose, remains the first principles of HYIP.
Do you find this blog useful? Do you have a comment? Kindly use the comment box.
Related Topics:
Learn winning strategies of HYIP
Learn how to invest in HYIPS
Learn how to spot a good HYIP
How do I cash out my HYIPs earning?
What is HYIP?
wonderful information, I had come to know about your blog from my friend nandu , hyderabad,i have read atleast 7 posts of yours by now, and let me tell you, your website gives the best and the most interesting information. This is just the kind of information that i had been looking for, i'm already your rss reader now and i would regularly watch out for the new posts, once again hats off to you! Thanks a ton once again, Regards, Returns on Investment, Returns on Investment
ReplyDeleteThanks Kennath
ReplyDeleteOnline Investment
ReplyDeleteIPMT-FMS - Business Real, Really Big! We do not need to search or investigate any other business! Happy to say that I am earning from May 2012! Proud to be the family member IPMT-FMS!
Online investment
ReplyDeleteThis is an awesome blog. I found this article very helpful. I bookmarked this website. No
doubt to come here again and again.
I really appreciate your teaching quality. I have created a same niche website. Please
visit this page and leave a comment for a great communication.
how to make money online