In the High-Yield Investment Program universe, the vast majority of projects are 'sprinters'—they burn brightly for a few days or weeks and then vanish. However, the holy grail for many investors is the elusive 'marathon runner'. These are well-administered programs that manage to survive and pay for many months, sometimes even over a year. Finding and investing in such a program early on can be incredibly profitable. While there is no magic formula to guarantee you've found one, marathon programs almost always share a common set of characteristics. By learning to identify these traits, investors from Brasilia to Budapest can significantly improve their chances of spotting a project with long-term potential.
Potential long-term programs distinguish themselves from the common scams through their preparation, planning, and execution. They are built to last, not to make a quick buck.
It is vital to remember that even the longest-running, most professional HYIP is still a HYIP. It will, eventually, come to an end. The risk of collapse is ever-present. Therefore, even if you believe you've found a marathon runner, you must still practice disciplined risk management. Withdraw your profits daily, aim to get your principal out as soon as possible, and never become complacent. The principles of portfolio rebalancing are just as important here. Finding a marathon HYIP can be a great success, but you must know that the finish line is always a scam. For context on long-term investment horizons, reading materials from established financial planning firms like Vanguard can highlight the stark difference between regulated investing and the HYIP world.
Author: Edward Langley, London-based investment strategist and contributor to several financial watchdog publications. He focuses on risk assessment and online financial security.