Investment Tips You May Not Have Heard Before
1) Be cautious with pure scams, ponzis, hype, autosurfs, and HYIPs. By nature, they are very risky. A few scams may be hard to identify but many are not. How does the company make their returns? Any evidence/proof? How long has the company been running and what do others say about it? Ponzis are simply illegal in most countries. As for autosurfs and HYIPs, history proves these are popular arenas where many admins scam members. There are smart ways to play certain autosurfs and HYIPs. A few tips are to monitor the traffic, perform a domain search, get in early, and take your seed money out as soon as possible. However, this is a game that must be learned to win most of the time, and an unnecessary game at that. Unless you’ve learned how to play them, your time is better off with proven real business companies.
2) This tip is a bit complex. It may receive criticism but it is true. Usually, the best type of money making opportunity to join is a company that is not only doing well in many kinds of investments, but is gaining new members, new money, and new increasing traffic at a STEADY pace. Traffic that increases dramatically and unexpectedly can be just as much of a problem as decreasing traffic.
Example: Imagine an investment company with a membership base that is not increasing and receives very little traffic. If the investments of the company ever happen to take a hard hit, there is no new money coming in to help the company cover up losses. Unless there is an emergency reserve, the company must either close shop or decrease the pay to members. Pay decreases can cause some members to panic. For this reason, many of the best companies have legal streams of income or investments, mixed with an attractive matrix or referral system to attract some marketers. Just look at some of the top companies that have been around for awhile. This mix provides an extra cushion of insurance for the company and members. However, the legal streams of income or investments should be the main source of income. We’re not talking ponzis here, as ponzis mostly or completely rely on money from new members to pay older members.
Do realise many other factors play in a successful company and a steady increase in traffic is just one indicator to look at. There are also many companies that do just fine with no growth, especially the private ones. Private companies are more under the radar and hard to come by. Going private is a strong statement by the company stating “We don’t even need nor want the money from new members, because our company makes enough money with our experienced and skilled investors.” Either that or the company has reached their investment limits.
3) This one is really important because there is so much of it out there. Watch out for programs that simply piggyback off a company you can join yourself. Cut the middle-man and go straight to the source.
4) Because of the nature of business and opportunities, whether for a positive OR negative reason, there are many times when company owners choose not to say something clearly and respond in an ambiguous manner instead. Read between the lines and make an educated judgment call.
5) Have a money making strategy! A rule of thumb is to reach profit as soon as possible, and play with house money after your initial investment. The 50/50 rule mentioned in the next section is a good example.
6) Be creative and start up a website. You can advertise programs you like and inform people what programs to stay away from. Better yet… educate yourself on how to start up a business, learn how to trade, or just write about something you love. If you’re saying to yourself “Writing about something I love doesn’t pay the bills”, throw some advertisements on the page.
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Investment Strategies
Here is a very profitable, safe, and smart investment strategy. Overall, follow this strategy roughly depending on which opportunities you are in. My goal here is to just provide you one successful strategy and a basic idea of how to properly invest. There are many ways to go about it but this is the best rule of thumb in most cases:
1) Put in your initial investment in the companies you want to join. I tend to make my initial investment a higher amount.
2) Once you receive the rebate amount for your initial investment, keep your seed money (initial investment money) and 10% – 25% of your profits.
3) For your second investment, compound the remaining 75% – 90% of profits that came from your initial investment. Congratulations, you took your seed money out, you’re already in profit after your first investment run, and you have a growing investment plan. This is the smartest way to play.
4) Once you receive the rebate amount for your second investment, keep 50% of the profit amount from your second investment.
5) For your third investment, compound the total amount you originally invested for your second investment, ALONG with the remaining 50% of profits you received from your second investment.
6) Repeat Step 5 over and over. Example: For your fourth investment, compound the total amount you originally invested for your third investment, ALONG with the remaining 50% of profits you received from your third investment.
Keep doing this, and you’ll be taking advantage of making a profit income right after your first payment, and you can compound profit house money to acheive higher returns in the future. In the future, compounding would beat the returns you would have made if you didn’t compound at all. However, if you have enough money to invest and feel comfortable with what you’re already making, you won’t need to compound at all. Compounding is for those who want to leverage. Compounding can also make you lose all your money if you don’t do it correctly (never compound seed money, only a percentage of house money profits earned from your seed money)!
For those of you who like examples better, here is an example of the above method being used on the conservative side:
For simplicity’s sake, say a company pays 150% after 30 days (note: such a return is usually high risk). Let’s say you put $1000 on May 1st.
You’ll be paid $1500 on June 1st. You’ve made a $500 profit. Now, for your second investment on June 1st, put back 75% of this profit which is $375, and keep the remaining $125 for yourself, as well as your $1000 seed money. Congratulations, you took your seed money out, you’re already in profit after your first investment run, and you have a growing investment plan! This is the smartest way to play. Now let’s continue to grow…
On July 1st, you’ll be paid $562.50. This is a $187.50 profit from the 2nd investment you made. Now, for your third investment on July 1st, put in the same amount you put in for your second investment, $375, plus 50% of the $187.50 profit you received from your second investment. Together, this amounts to $468.75. You can keep the remaining 50% of $187.50, which is $93.75.
On August 1st, you will be paid $703.12. This is a $234.38 profit from the third investment you made. For your fourth investment on August 1st, put in the same amount that you put in for your third investment, $468.75, plus 50% of the $234.38 profit you received from your third investment. Together, this amounts to $585.94. You can keep the remaining 50% of 234.38, which is $117.19.
On September 1st, you will be paid $878.91. This is a $292.97 profit from the fourth investment you made. For your fifth investment on September 1st, put in the same amount that you put in for your third investment, $585.94, plus 50% of the $292.97 profit you received from your fourth investment. Together, this amounts to 732.42. You can keep the remaining 50% of 292.97, which is $146.48.
Summary: On September 1st, you would have an active investment package of $732.42, made from compounded house money! By September 1st, you would have kept/earned a total of $482.42 ($125 + $93.75 + $117.19 + 146.48 = $482.42). This is the total amount you’ve kept only after 4 months. The amount you receive continues to increase in time. Not only that, but you received your seed money back from your first payment!
