What is Diversification as applied to HYIPs?
Diversification is a technique that reduces the risk by spreading your portfolio over many programs to avoid excessive risk imposed by HYIPs. In simple English this means do not put all your eggs in one basket.
There are certain issues you should consider on how to diversify you portfolio over different programs. Lets see these issues one by one:
Determining how many Programs You should have:
Obviously diversifying over 10 programs is better than investing into 2 programs. It is even better to have 20 programs instead of 10. But, it is hard to find 20 solid programs. There fore , The bottom line for diversification , as far as HYIPs is concerned is that , you have to diversify you portfolio over researched programs as maximum as possible. But, I want to clarify one thing; Diversification does not mean spreading your portfolio over scam programs. Always make a diligent research before you diversify you portfolio.
To put it briefly, diversify your portfolio to at least 5 to 10 well researched programs.
Mixing between Old and New Programs:
You may have favorite programs performing well for...