Saturday, January 4

Yes or No for Compounding?

Hello everyone,

I'm sure that everyone of you know that most of HYIP programs offer you to invest with compounding feature. Compounding is reinvest feature where your daily interest is not paid out to you, but it is added to your principle in case to receive bigger interest next day and bigger profit in end of investment period. Is compounding good feature or not? Find it out here!




Theoretically with compounding your principle grows exponentially and in the end you get back more then if you would do regular investment. In reality it do not work like that, because, if program offers compounding it is hard to survive for such program in long term.

Lets do some calculations, for example we have HYIP program X what offers you 1.4% daily for 100 business days, plus principle back in end of the period. I would like to invest just $100 and before I invest I will use help from hyipcalc.com what will show me how much I can possibly earn.

Without compounding:


With 100% compounding:

Do you really believe that HYIP will pay back you $803.20 if you will invest just $100? Do not believe in such fairytale. It is not possible in reality to pay back such ridiculous amounts of money. Remember that  if you would invest more then interest would exponentially grow even more. 100 business days is long period and there is chance that HYIP program has received many deposits to cover your 100% compounding deposit, but remember that you are not only one who is doing compounding and compounding is deadly in first place.

Generally I would say - NO to compounding in first place. Do not do compounding or if you do then just 5% till 20%. Compounding historically has been good tool for HYIP admins because people are greedy and they want to earn more, but in reality for HYIP program is hard to pay out even "regular" interest. People put money in programs calculator and just think that they will get back 8 times more what they invest, obviously it is not possible.


But always there is some exceptions.

Exception one: For example there is HYIP program Y with following investment plans:
  1. 1% daily for 20 business days.
  2. 1.3% daily for 40 business days.
  3. 1.5% daily for 80 business days.
  4. 1.7% daily for 160 business days.


As you see HYIP program Y offers four investment plans. If program is really well made then there is big chance that it can survive 80 or even all 160 business days. I would do green light for compounding in first and maybe second investment plan if program is very good. But only do it in superb programs. Remember - do it only in very first days when program has started, after that do not compound at all, because it can leave you with nothing.

Exception two: If HYIP offers feature when you can withdraw you principle anytime. Take in mind that projects where you can withdraw principle anytime are far more risky then others. Most investors do "hit and run" tactic in such programs and you can stay out with zero money at all. Always check how health program is (in blogs, monitors, forums), because it is better if you withdraw earlier then stay with no money.


In end I want to say you that compounding is dangerous in first place, if you want to risk then you can do it, but I would not recommend to use compounding at all.

David
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3 comments:

  1. Charlie1/04/2014

    Yes, I agree, I have used the compound once and lost $ 300, I will not make this mistake more in my life.

    ReplyDelete
    Replies
    1. Anonymous1/05/2014

      Same story with me, no more compounding in my life, it just do not pay back.

      Delete
  2. Anonymous1/10/2014

    Only in one program i succeeded with Huge return lol that is Felmina Alliance , got around 990$ after 180 days and invested 80$ at first lol ... !!

    ReplyDelete

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