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HomeNewcomersWhat is risk diversification or how to protect your money from scams?
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What is risk diversification or how to protect your money from scams?

Investing almost always carries with it certain risks for your funds. If the investment occurs in the HYIPs, then the risks can be enormous at all, since the HYIP industry itself is extremely unstable and unpredictable. But even in such an inadequate environment, risks can be significantly reduced due to diversification of funds.

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English proverb says: "Do not put all your eggs in one basket"and the British, like people who succeed in financial affairs, are completely right. This phrase fully reflects one of the main principles of investment in HYIPs, called diversification. Under the abstruse word, which not everyone has heard, lies a very simple meaning.

basket

Diversification - reduction of financial risks due to the distribution of capital for several investment projects. The essence of this term can be explained using a simple example, which is quite common in a HYIP environment. If the investor owns 1000$ and invest them in the project you like, in the case of a scam, it will remain with an empty pocket and an annoying insult in the shower. If the investor is able to think more globally, then he will invest in equal shares in ten projects and, in the case of any hype from his portfolio, the losses will be covered by income from others.

As you see, there is nothing difficult in diversifying funds and, if it is logical to think, then this method really reduces the possible risks to a minimum. But, again, you can minimize the risks through the distribution of funds only if you select really high-quality projects that have a good job - if you collect a full slag portfolio, then sorry, but diversification will not work.

It is also important to be able to allocate shares in your portfolio among projects with low risk and high. It is well known that fasts carry a greater risk, while low-income projects are the safest. This fact should be used when selecting projects for diversification. At the same time, most of the capital in the amount of 70-75% it is worth investing in more reliable instruments, for example, low-income and middle-income projects, while under “fasts” to “reserve” the remaining amount of 25-30% from the bank.

diversification

Guided by the principle of diversification, do not forget about other important rules of investment, which together will increase the chance of success:

  • Carefully analyze the projects you select for diversification. Pay attention to the technical side of the project, its marketing, evaluate the promotion, the opinion of other investors.
  • Be sure to enter the project via a referral link, as in the case of receiving a refback, you are much quicker to break even, which means you reduce the risk of losing money.
  • Do not try to pick up as many projects as possible in your portfolio - let them be several, but you will be as confident as possible in their work capacity.
  • Choose those projects that have started recently. In this case, it is not necessary to fly into the project without understanding what it represents.
  • Use the tactics of cunning in projects that pose the greatest risks (high percentages) and the tactics of reinvesting interest in HYIPs that inspire confidence.
  • Try to choose projects with the shortest possible investment terms, as well as those that return the deposit in payments, and not at the end of the term.

Baskets

Be sure to keep records of your investments and analyze the results for a certain period (week, month). Draw conclusions from the data, determine the category of projects that bring the maximum part of the income - for such sites a percentage of the bank can be increased. For example, if middle-income projects showed the best performance, and Fasts only incur losses, then the number of profitable projects can be increased at the expense of funds withdrawn from the unprofitable cell of the portfolio. At the same time, it is important to take into account that you have a really high-quality average interest HYIP, which should be included in the list.

Diversification of funds is a fundamental method that many investors have tested on themselves, operating not only in the HYIP space. Be sure to resort to it so that your investments bring profit, not losses.

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