Archive for July, 2007
by Mike Estrey
Traders in shares, indices, forex or commodities should always have a backdrop of basic rules, which revolve around going with the trend, limiting losses and good money management. In other papers, we have covered these items extensively, together with how to avoid mistakes and other important factors to watch when trading CFDs. There are, however, some commonsense rules that do not have to be applied to rigorously, but add another level of comfort within what can be a very stressful process.
A simple first rule — watch the cost
Market makers and other brokers are not stupid, and the setting of prices and spreads (or slippage) depends on several factors including time of the day, volatility and before and after news items. If you have a system that is not tailored to quick, intra-day moves, and your chosen timeframe is to look for results within anything up to a month, then minute by minute timing is less important than getting the overall picture correct.
On that basis you need to reduce your slippage costs as much as possible, so the time to place trades should be when the spreads are narrowest. After a while you should be used to the normal minimum spreads on most shares, and unless there is a pressing need to immediately deal (maybe on a profits warning or takeover news), then it pays to always ensure the spread is at the minimum before dealing.
This means not trading in the first few minutes of the trading day as buyers and sellers position themselves for the session. Sometimes the whole market may not only be marked down, for instance on a heavy fall in Far Eastern stocks overnight, but spreads might be wider because of the frenetic nature of early dealing. After a while though the spreads should usually return to normal, and you can deal more comfortably.
Example: You have a system that uses 3% targets and 2% stops, and say you normally buy and sell Royal Bank of Scotland shares with a minimum 1p spread, which represents a 0.05% or 5 basis point spread. From time to time the spread widens and can be as much as 5p after an outside event or early in the morning. This means that if applied to both sides of the trade, dealing on this wider spread would cost an additional 0.4% or 40 more basis points and effectively negates almost half of the edge of your system, which is fairly serious.
Moving on from this, it pays to stick to the biggest and most liquid stocks for the majority of your trading and this is a quick list of the leaders in the UK and which have the narrowest spreads:
Banks: Barclays, HBOS, HSBC, Lloyds, Royal Bank of Scotland, Standard Chartered
Beverages: Diageo, SAB Miller
Food producers: Unilever
Food retailing: Tesco
Household Goods: Reckitt Benckiser
Insurance: Aviva, Prudential
Mining: Anglo American, BHP Billiton, Rio Tinto, Xstrata
Oils: BP, Royal Dutch Shell, BG Group
Pharmaceuticals: Astra Zeneca, Glaxo Smithkline
Telecoms: BT, Vodafone
Tobacco: BAT Industries
Utilities: National Grid
Rule 2: Get to know a few stocks very closely and increase your knowledge
Many market professionals focus on one area of the market, and some simply trade a handful or even just one issue, be it a particular commodity, Treasury bond or stockmarket index. You will probably find that you become accustomed to the ebbs and flows of certain shares, and if you feel you are on the boil with these companies, then you have an edge.
If you decide to focus on say ten UK shares, you should get to know their trading ranges, average daily volume, sentiment to their particular sector, previous support and resistance levels, the tone of previous management comments and when news is due.
Furthermore, it goes without saying that when trading commodity stocks including miners and oil companies, you need to be aware of movements in the price and direction of principal metals and crude oil. Because there are other factors in play when institutions buy or sell in the market, such as dividend payments, overall market action or takeover hopes, share price movements can sometimes lag a rise or fall in the underlying commodity, but this is very important to each company’s overall profitability. Likewise, overall retail sales figures are important to the retail sector, which is obvious, and the health of the housing market and interest rates affect financial stocks.
A couple of extra rules
The ‘trend is your friend’ is a valid theme throughout swing trading, but it pays to only go long when the price offers further upside potential, or there is another volume and/or candlestick signal, otherwise you risk buying at the top. The aim is to ride an established trend, so while it is OK to miss the first part of a move, you should not buy when a trend may be about to reverse.
Broker upgrades and newspaper tips are a waste of time, because they are usually already factored into the market by the time it is your turn to place a trade. Whilst some analysis can be excellent and thought provoking, the persons giving the advice may sometimes have a different agenda. Price and volume action is the key when trading, but of course for longer term decision making the fundamentals must be examined as well.
About the Author:
Mike Estrey is the Head of Research for Blue Index, the Day Trading specialists in Contracts for Difference. Foreign Exchange Trading also forms part of their extensive services.
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by Richard Stoyeck-2657
Wow, it’s just starting and it’s not going to stop. Basis Capital is an Australian hedge fund. They run about a billion dollars under management. What you have to keep in mind however is that hedge funds use LEVERAGE, big leverage. The average hedge fund manager in the United States is using 6 times the capital base of the money he is managing, as leverage. In the race for performance or the elusive alpha, some hedge fund managers are pushing the envelope and using as much as 10 times leverage. This can cause serious problems because when leverage goes against you, it’s DEADLY.
An example is now the latest announcements coming out of Basis Capital. Apparently this hedge fund was invested in the US home loans to investors are less than creditworthy. The hedge fund claims that the collateral in their portfolio is sound, but sound is a matter of judgment. Unfortunately for Basis Capital, the prime broker clearing for the hedge fund doesn’t agree with them. The prime broker has re-priced this so-called sound collateral.
What does it mean?
The hedge fund now has to go into a crisis mode to survive. Immediately many investors will ask for their money back. This is the step that kills off the hedge fund. In order to prevent a run on the bank, as they like to say, the hedge fund has announced that they may restrict redemptions, which is the right of the investor to withdraw their money at, will. If investors are allowed to withdraw their funds, the collateral securing the underlying investments usually collapses because other smart money knows that that collateral has to be sold in order to fund the redemptions.
Prior to originating a hedge fund, most hedge funds will install restrictive covenants in their investor agreement that build in what are called gates. These gates limit by quarter what can be withdrawn from the fund. It’s about self-preservation. In this case Basis Capital and its two hedge funds require 90 days notice before capital can be withdrawn. Once again this policy attempts to prevent a forced liquidation of the underlying collateral securing the hedge funds’ investments.
Basis Capital has warned that the true extent of their problems might not become evident until September. What does that mean? These people mark to market every day. They have the finest computer pricing systems in the world. PhD’s in mathematical modeling are a dime a dozen in the hedge fund industry, and yet this hedge fund doesn’t know where it stands financially. This is a breakdown in the system, and it has great meaning to the rest of the hedge fund industry.
What happened to Basis Capital is very simple. In the range of assumptions they used to make their bets they determined normal risk parameters. They did not give any consideration to the possibility that the investments they were making might, just might move outside their normal variability ranges. In other words they excluded worst-case possibilities from their consideration. The melt down of the sub prime lending market is such a possibility and it has HAPPENED. For an elaboration of this article, please see our website.
Richard Stoyeck’s background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtBottom.comhttp://www.stocksatbottom.com/hedge_fund_warns_basis_capital.htm
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by Richard Stoyeck-2657
Millions of people use margin debt on a daily basis. Traditionally what this means is the following. You buy 1000 shares of IBM and let’s say you pay a $100 per share. You owe the brokerage firm $100,000. This is the market value of your account if it is the only item in your account. If you are a cash customer, you write a check for $100,000 by settlement date, and you own the 1000 shares of IBM free and clear of any encumbrances.
There is another way to go however. You can buy the $100,000 worth of IBM, and decide not to pay the full cost of the investment. Instead, you open a margin account with the brokerage firm, sign the appropriate documents and bingo, you can now buy that IBM by putting just 50% down, and the brokerage firm lends you the balance. They don’t do it for free however. They charge you a fee on the borrowed funds. Depending upon how good a customer you are (frequency and size of trades), the interest rate charged will vary.
In a sense margin debt is somewhat similar to how you bought your house. When you bought your house, you probably did not fully pay for it. Instead, you put more than likely, 20% down, and borrowed the rest in the form of a mortgage from the bank. The difference is that in financial world, you must put 50% down to purchase a stock.
The Other Big Difference
If you buy stocks on margin, and the stocks decline in value, you could get called on the debt. Brokerage firms feel very comfortable lending money for margin accounts because they hold the securities as collateral. Brokerage firms begin to feel very uncomfortable when those stocks begin to go down in value. If the stocks should go down in value to the extent where the underlying securities are no longer supporting the value of the account, the account is deemed to be negative equity. This then becomes the brokerage firm’s worst nightmare.
It’s gets even better. Hedge funds are called hedge funds because when they go long certain positions, they are supposed to be short other positions to OFFSET the long positions. Hedge funds therefore make their money on VOLATILITY. The laws allow hedge funds to borrow (leverage) their capital base. This means instead of putting down 50% on an investment’s market value, they will use as much as six times leverage. We have seen hedge funds go to ten times leverage. Recently, we have also seen hedge funds crash and burn.
This is what you need to know. Years ago, when I was with the largest investment firm in the world, we did an internal study. The study showed that the average life expectancy of a margin account before getting a margin call (the need to deposit more cash into an account) was 19 months. This means in our opinion that if you are a margin player, you will at some point get called on the account.
Are we in trouble with the amount of margin debt in this country? Go to our website for a continuation of this article, and find out for yourself, you are going to be SHOCKED at the answer.
Richard Stoyeck’s background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtBottom.comhttp://www.stocksatbottom.com/
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by Richard Stoyeck-2657
Both the hedge fund and private equity industry had free rides during George Bush’s Administration when the Congress was safely in Republican hands. All that changed in November 06 when the Democrats swept the Congress, and with the change in control came new Democratic responsibilities to address the fiscal deficits generated during the time, the Republicans controlled both the executive and legislative branches of government.
It is strange to ponder, but the Republican Party which is considered by most to be the party of fiscal responsibility has probably generated 80% to 90% of the nation’s accumulated national debt. Nevertheless, myths still persist that the Democrats are the big spenders. Just today, the major newspapers featured articles stating that Bush says Democrats must control spending.
Now there are only two ways to deal with spending. The first is to spend less, but no politician likes that concept. The first rule of government is that politicians regardless of party SPEND MONEY. The second way is to raise taxes in an attempt to close the gap between spending and revenues taken in. With the Democrats in power, they will use the second method, which now brings us to Hedge Funds and Private Equity.
Under the provisions of the current tax code, both Hedge Funds and Private Equity are given preferential tax treatment. Certain items of income which might be considered subject to ordinary income tax rates are instead subject to 15% capital gains tax rates. As for the equity of this policy, the quick and dirty of it, is that there is no equity or fairness. The tax code is 80,000 pages of special interests. Every provision in the tax code was written in a certain way to benefit some one, or some special interest, whether it’s the farmer or a hedge fund, or the restaurant industry. Everybody exercised their political muscle at one time or another to get what they could out of the tax code.
These special interests just head down to Washington DC and meet with the people who control the Congress, go to fancy restaurants, and try to re-work the tax code to benefit themselves. The latest journeyman to Washington is none other than Henry Kravis, the man who made the private equity industry what it is today, through the formation of Kohlberg, Kravis, Roberts and Company (KKR). Democratic Congressman Sander M. Levin is proposing to more than double the amount of taxes Kravis now pays. Kravis is a billionaire several times over, and he’s still looking to cut his tax bill. Whatever happened to giving back. Whatever happened to Andrew Carnegie’s approach to civic responsibility?
The Congressman’s staff asked Henry Kravis very pointedly, if increasing taxes on private equity would adversely affect workers and other middle income type families by distinctly lowering returns that pension funds got on their investments. When Kravis answered “No”, the meeting ended abruptly.
In other meetings, Stephen Schwartzman who founded the Blackstone Group, and David Rubenstein, who co-founded the Carlyle Group have met with other regulators in an attempt to stall the tide. Lobbying groups are being set up in a hurry, and money is being poured into them by private equity and hedge funds, who up until recently were asleep at the switch. They did not realize to what extent Washington has had them in their gun sights. For more on this topic, please visit our website.
Richard Stoyeck’s background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtBottom.comhttp://www.stocksatbottom.com/hedge_fund_industry_private_equity.htm
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by Jim R. Wilson
As you begin your adventure to learn forex trading, you will become familiar with terms like spread, pip, cross, ask, appreciation and liquidity. You will begin to see the importance of the health of the world economy, as opposed to a tunnel vision view on the domestic economy. Mastering the details of forex trading can be a challenge, but the financial rewards can be enormous.
The Forex trading system is a 24-hour based market, giving you flexible access to it at any time of the day or night. Unlike with other markets, such as the stock exchange, you can continue dealing with the currency trading market without worries over it closing at the end of the day. Forex websites allow you anytime access to find out what is occurring in the market at any given time. This allows you to learn the fundamentals of the market.
There is help given by these websites in the form of tools and tips to help you overcome the trading learning curve. This is clearly a bonus! You can practice your trading to your heart’s content without risking any of your own money.
Realize, in fact that the forex companies are training you to become a currency trading pro by giving you free help, demonstrations and world trading news. How much does it cost to get started trading forex? It only takes about $300 to open an account with a broker and to start investing
Thanks to the internet, learning the currency market has made it easier for even a regular guy to successfully earn money. Intermediaries, called forex brokers, will provide an access point to the currency market for you.
Just like stock brokers, they can provide you accurate information and advice on how to deal with Forex trading strategies. The advice extends to everything needed to become successful trading forex which includes technical analysis and fundamental analysis data. Without a doubt, forex provides a great return on investment. It is no wonder that large financial institutions try to monopolize the marketplace.
Profitable results are there for the taking even for an individual investor with a few dollars, because of the easy access to the internet. As I mentioned earlier, the online firms have been providing powerful website tools to become familiar with the whole idea of the currency market.
When you choose your broker, the determining factor should be your level of experience in the forex market. Many houses (online Forex trading brokerage sites), feature simulators and advice, as well as detailed research designed for the use of the beginners. You will find that some sites offer access to experienced professional forex traders that make themselves available for questions and advice to forex traders at various skill levels. Beginners can try these tools and find out if they cater exactly to their needs.
As you become more comfortable with the online forex sites, you’ll have a better handle on how to best use the tools and methods that are available. This flexibility will give you the confidence to make wholesale changes in your forex trading strategies when the circumstances call for it. This will allow you to prosper in the long run.
Jim Wilson gives you more free information at Average Income From Forex Trading. Search other helpful articles at- Average Income From Forex Trading Articles. Click here http://www.forexminitrading.com
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by Alexandria Anderson
Deciding to buy investment property is one of the best decisions you will ever make for yourself. However, it isn’t something you can decide to do one day and then rush out and do the next. There is a process that you have to learn and lots of information to digest. If you think you have done that already and you are now prepared to go out and make your first purchase, here are five questions to ask that will help you to prepare.
What type of investment property are you interested in? Are you interested in a single-family unit, a duplex or maybe a multi-family complex? Are you interested in hotels or motels? What about undeveloped land? How you answer this question will determine other things that you do later, such as how you decide to actually pay for the property. It is also best to choose one direction to pursue so you don’t go on wild goose chases and so your team knows what they should be helping you with.
Do you have a specific area that you are interested in? Do you want to invest
Do you have a financing strategy
Do you have a team in place? It’s just too hard to be successful at this without a good team. This is simply because there is so much work, and so many different types of expertise needed, that you simply can’t do it all by yourself. You won’t have enough time to become skilled at real estate law and accounting, plus broker your own deals and manage your own properties. You have to delegate. That is why McElroy says you start with an attorney, an accountant, a broker and a property manager. After that, you may also need appraisers, tax consultants, a surveyor, a structural engineer, an architect, an estate planner and more.
What is your repair budget? This is very important. Knowing this will help you determine what areas to look around in because some areas may be full of old buildings or some newer buildings may actually be in need of a lot of upgrades. You will want to what you are getting into and whether you can handle it.
This is by no means an exhaustive list of questions. Once you embark on your real estate investing adventure, you will discover a never-ending list that you will need to pay attention to. But these will get you going on the road to asking yourself the right kinds of questions. Sometimes asking the right questions is more important than the answers themselves.
Alex Anderson is a Minnesota Investment Property specialist who helps people to purchase, rent, and maintain Investment Properties in Minnesota. To learn more visit: http://minnesota.greatinvestmentproperty.com
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by
You might not realize it, but one of the most important lessons you can teach your kids is how to invest
The Earlier the Better
Even when your child is 8 or 9 years old, teach him or her how to save. Giving your children an allowance is a great way for them to understand the importance of money and savings. One technique to use is to reward them when they successfully save money. When children are in their teens, you should encourage them to open a savings account and deposit money into it each week or month. Teaching your children how banks work and the ease in which they can save money can help them in later years.
Teach Children the Importance of Building Credit
Children grow up very quickly and it won’t be long till they apply for a credit card. Talking to your children about the ups and downs of credit is extremely important. Don’t wait till they are packing for their first semester at college to teach kids the basics of credit cards, it is important to start much earlier. When shopping with your kids show them by example how to use credit cards effectively, talk to them about how interest works and how credit cards on the whole work. Encourage kids not to buy things impulsively, instead to plan out their purchases for maximum satisfaction. These are all lessons that can help children avoid the pitfalls of credit cards.
Investing for the Future
As a parent, your goal is for your children to be extremely successful and never have money problems. One of the ways to help your children on the right path is to discuss with them investing for the future. For many kids, retirement is not a concept that they can relate to, but buying a house or nice car might be. Teach your children the ways in which they can invest, what tools they need to invest properly and how to use the power of compounding interest.
Connie Barker is the owner of several financial websites dealing with bad credit scores, personal loans, and investing.
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by Georgia McClure
I always like to ask my clients, “Will your financial planner be willing to pay your long term care bills, will they have access to good quality Home Health Care Providers?” Many lawyers and advisors are now reluctant to recommend against Long Term Care Insurance for fear of law suits later on, from children, when hundreds of thousands of dollars were required to pay for their parents long term care bills. Planners who fail to recommend coverage are more times than not, unaware of the real RISK of needing care one day.
The senior has now become the GREATEST financial risk that Americans face today. The majority of them are unaware of it because let’s face it: No One wants to think about needing Long Term Care. It is going to happen to someone else!
Long term care bills are the biggest reason for financial failures among seniors today. Yet there are a lot of Financial Planners and Investment Advisors who will say that you don’t need Long Term Care Insurance. If you already have a lot of money, perhaps you don’t! The question is: Would it be a smart decision to have this coverage?
What we are seeing today are many Financial Planners split on the subject of LTC Insurance. You will hear some say that if you have any resources you should not be without it, that it is an integral part of financial planning, while others think if you have enough money you should self-insure. Who is right?
Every financial advisor I talk with would recommend long term care coverage if he knew in advance that his client would need several years of long term care.
Do the math. In a state where long term care bills are averaging $170 per day, and the average premium is $4000 a year for a couple, aged 60, and they live another 20 years, they have paid out $80,000 in premiums for the peace of mind that they will not go broke. Without the insurance, they could end up paying over $80,000 in less than two years for ONE OF THEM on the advice from a Financial Planner telling them that they DON’T NEED IT!
It must be concluded that Financial advisors who recommend against LTC Insurance figure you are not going to need care since they would recommend you obtain coverage if they knew you were going to have to spend several hundred thousand dollars. You should find out from the advisor what is the BASIS for their prediction? Also, be aware that Advisors are sales people. They are in the business of making you money. If you purchase Long Term Care Insurance, you have less money for them to manage!
The decision is yours. At this point in your life, are you more interested in making a few more thousand dollars a year or are you more interested in protecting what you have already earned from the most DEVASTATING financial risk that people face in America today? One of the biggest financial mistakes a person can make today is needing Long Term Care and having no coverage! Is this a mistake you want to take a chance on making? Seek out a LTC Insurance Specialist to help you make the best informed decision for you and your family.
Remember, your Financial Planner or Advisor is not going to pay your long term care bills. You will!
Georgia McClure is a Long Term Care Finance Specialist residing in Tampa, Florida. A recognized expert in planning for the cost of Long Term Care, Georgia consults regularly on this subject with individuals, organizations, businesses, financial planners and attorneys. Georgia also gives public seminars on how to solve the problems of financing Long Term Care. She is well known for her practical and logical approach to the difficult decisions regarding Long Term Care. Georgia is a graduate of the University of California at Irvine and has served on the boards of various organizations including Hospice, Children’s Hospital, Special Olympics and Alzheimer’s Association.Click here for more information on LTC and articles by Georgia McClure
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by Vagner David
Any investor wishes to make money in HYIP. Finding a successful high yield investment program is not enough to maximize your high yield investments. Certainly it is not easy to maximize your return on investment from best HYIP. The main point of this article is the strategies how to find “fruitful” and prosperous HYIP and to maximize your interests from this HYIP.
Before we start to discuss the strategies, we should find an answer to the question what is best HYIP. Well, it is difficult to answer because there are various possibilities. For some investors the “fruitful” HYIP is HYIP with huge daily interest, for other HYIPers the “fruitful” HYIP is HYIP with instantly withdraw. Undoubtedly, all these investors are right.
I guess than each investor wishes the “fruitful” HYIP which is online for a long time, not just several weeks or a few months. Moreover, each investor wishes that “fruitful” HYIPs must have fast support. Some HYIPs reply to your questions within 1-2 days and, of course, it is too long! I am a potential investor and I need to get an answer immediately!
Certainly, you can find many answers in FAQ section of a great number of HYIP web sites but sometimes you need information which you can not find there. If HYIP has phone support so it is very good, you can always phone them and get answers to your questions.
According to many experienced online investors, one of the most important things for the “fruitful” HYIP is fast withdraws. No one wants to wait 1 or 2 days till they receive payment. Certainly, everyone wants to get money within few hours. “Fruitful” HYIPs have to pay fast.
All investors agree with me that HYIP security is significant in online investments. Of course, the “fruitful” and prosperous HYIP must have the server protection to guarantee that users’ accounts are safe and secure. Real “fruitful” HYIPs spend a lot of money for hosting and advertising as well as Ddos protection and security.
If HYIP has Prolexic Ddos protection it is a really good sign of seriousness of this high yield investment program because according to online security data, Prolexic Ddos protection costs more than $2000 per month.
Daily interests are the subject of many hot discussions on online HYIP forums because investors have very different opinions. Some people prefer 10-20% daily and other like 1-2% daily. Undoubtedly, the prosperous HYIP invests money into Forex trading and to other contemporary industries. So if HYIP earn money in Forex they can not offer 10-20%. It is impossible and each investor knows that.
Now the time is to discuss ways how to maximize your HYIP. After having found the “fruitful” and prosperous HYIP, the key to having successful investments is to build a safe, diversified portfolio and to extract your own money as quickly as possible. This will limit risk to your capital because if one programme closes, you will still have the others to fall back on.
Before investing
Besides, HYIP scripts are easily to get a hold of and this makes it easier for fraudsters and scammers to operate. One of the things to look for is the programmer’s reputation if they are paying consistently.
When the investor makes any online investment, his aim is to extract his money as quickly as possible. This is because the investor wants to be able to invest
Another meaningful thing is that the investor will need to make use of referral systems to explode his profits from his investments. This is when the investor recommends someone to the programme and receives commission for it. This usually creates residual income for the investor which means him the opportunity to invest more of “other people’s money” to make even more cash.
This article will help you find “fruitful” and prosperous HYIP and maximize your high yield investments. To grab my collection of golden rules successful HYIP investing visit
David Vagner shows you how to maximize the effectiveness of HYIP.If you wish to become successful investor check his site HYIP rating or visit http://www.thehyips.net/lessons/
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by Vagner David
HYIPs bring me $8289.68 in this month. How did I get this money without work? Answer is simple: I followed my golden rules of HYIP investing
#1 - Look at the main HYIP monitoring sites such as theHYIPs.net Main aspect that you should check it is status of program. If program has status PROBLEM most likely this HYIP will be closed in next 2 days. Look at votes and comments. If it looks like a program has been cheating the ratings by voting for themselves, or it looks like they may have hired a paid voter, then stay away. Check the voters IP, maybe the cheaters were not careful and didn’t use a proxy
#2 - Search all HYIP forums for the name of the HYIP. Maybe, somebody created topic about program which you want. . Look for people’s opinions. Often those who have been investing in HYIPs for some time are the ones with the best insite. If you see that somebody are spamming it is sign of short HYIP. Most importantly, look for complaints of people who have not been paid.
#3 - Do a search on google. Copy small parts (1-2 sentences) of the text from both the homepage and the page with information on how they make their returns. Paste it into the google search bar with quotes around it, and see if anything comes up. A good amount of the time, google will return results that are an exact match, usually a professional traders website. Also, do the same thing with any images of people that are shown to look as though they are the admin of the program. Simply get the name of the file that the image is uploaded as by viewing the properties of it. Then paste this into the google image search. You will be amazed that a lot of the time you will see that the image is a direct copy from another site. This proves that the admin is lying.
#4 Ask the Admin for as much personal information as possible. Also, check out all the information he/she provides. If he/she gives a phone number, then give them a call. If an address is given, then check it out for authenticity by looking at online phonebooks, and other databases. The more information that is available, the less likely it is that the admin will take the chance of scamming hundreds of people out of their investments. It makes sense to email the admin and ask some questions such as: where are you located, how long have you been around, and how do you make your returns. Then compare this information with found one. The common answers you will receive are United States, 2 Years, and Forex trading. Usually if these are the answers the admin is lying to you. About 75% of all new HYIPs claim that they have been paying members offline for over a year. 99.9999% of the time this is a lie. If an investing firm is able to deal with members offline for 2 years, there usually is no need to go online with their business.
All in all, if you follow these steps you will likely be saving yourself a descent amount of money in the long run. They improve your chances of walking away with profits. This tips are not complete list. Full one of golden HYIP rules collected on Thehyips.net.
David Vagner teachs people to be succsessfull on HYIP arena. To discover secrets dowload his FREE HYIP report here HYIP monitor or visit http://thehyips.net/lessons/
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