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Financial Instruments Trading AKA HYIP sometimes !!!

Primarily let me clear the floating rumour around the financial markets that HYIP(High Yield Investment Programme) is a total scam protocol !! Whereas the reality is its not actually the way its shown. HYIP ( High Yield Investment Programme ) does basically exist for over several years and will continue in the future also. But whats exactly existing in real HYIP is the simple working protocol, that is  an investors or a group of investors combine together and collaborate with a Good Fund Manager, Yes I repeat a good fund manager!! Definition of a Good Fund Manager is as simple, who is well experienced, knows how the financial markets react in different situations, and know how to place RISK TO REWARD RATIO in a particular financial market! That can be any financial instrument such as FOREX, BONDS, MTN, TREASURY BONDS, STOCKS, and MUTUAL FUNDS etc. A Good Fund Manager will have his past track record duly audited from a good Financial Auditor, such as KPMG, PWC, etc….

What basically the fund manager does is draws down a financial target to meet up a profit goal, derived from trading any of the above listed financial instruments, over a period of time. The quantity of trading in terms of volumes of trading is bit high, due to which two points are most common to happen, one is the profit ratio will be very high and other point is if the trade is not performing as per the correct direction, the risk will be also high, but that’s where a good fund manager comes to play. Fund Managers due to his long lasting financial history and market experience knows which tide will take him upwards and which tide may sink him down, so accordingly he manages the funds and allocates the volumes per trade!!  This is the correct picture of a existing successful model of a performing HYIP.

Now lets come down to non performing or Pseudo HYIP AKA SCAMS ones.

Most of the times to lure investors and pool up large funds, few similar minded people with negative mentality goof up around with bunch of marketing professionals, who are masters in convincing people around !! This is the initialization of the HYIP step one. Lemme repeat what is HYIP, High Yield Investment Programme. But here the real scenarios are a lot different, these people do really trade good for some time to win the confidence, of the investors to pool up more funds from the investors end and once the investor pours all in as per the pooling campaign goal, only two things have happened in the past ! Either the so called fund managers working with the marketing professionals, disappear with total funds, by just a single black out window and will shut down their website overnight ! Or the so called fund managers will post the most common message, “INVESTMENTS ARE SUBJECTED TO MARKET RISK “ , and will show out a good reason which will cover that their trade which they had opened went in the wrong direction due to some of the reasons which shall be one of the following ( Central Bank Policy Change, Central Bank Intervention, Market Crash due to Economic News, etc ). And the investor believes that what can the trader do, its the Central Bank policy which altered the trade !!! This is one of the most common successful gimmick played over by Fake HYIP runners in the markets !!!

I hope this article provides good insights of staying away from Fake HYIPs !!!

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What’s Fake in High Yield Trading !!

As the name says High Yield its pretty clear that the activities that are done are making high returns… But at what cost that the real question. Many promotional offers commonly haunt common man’s inbox today saying that ” We have a High Yield Programme ” which provides high returns upto 40 % a week or 300 % of the face value of the investment.  Such programme’s do not really exit, not because its not possible to achieve this success percentages but the probability of winning at this percentage is very much low. In fact you can say its 98 % failure all the time and 2 % possible that too by certain experts if favored by their luck .  The biggest false promotion comes when the programme runners promise the investor about its 100 % safety !!!

Imagine if such programme’s existed, why would richest people like Bill Gates, Steve Jobs, Warren Buffet, George Soros work so hard in expansions and mergers. Why dint they just get in touch with such people and grow they fortune to 300 % a annum, and not just 30 % annum what they are currently doing.

Dear Investor’s do not fall in clutches of the so called high yield bond traders, forex traders, stock traders who commit you get rick scheme by their so called non- successful business plans. They are good in marketing their ideas, but remember you don’t make money by those people, instead you will loose what you had earned . As the simple rule in life, ” if you got a magical wand in life with you which makes you all money that you desire, why would you expose it to any one !”  Then why are these people exposing this to you… ?

The real point is, High Yield trading does exist, but there is difference in in the returns offered based on tenure. however no unrealistic returns are really possible like 300 % in 1 day or 2..

So this is a simple eye opener to common masses that high yielding programmes do not exist which promise  too much in too low time..

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