Distributing
ones funds among various programs is really a good tool for security
provision. But is it really so? Is diversification really reliable and
universal as to deserve so much attention and NECESSARY implementation?
Of course,
diversification advice recommending it as the primary method of providing
security is based upon a wealth of experience and various mistakes.
So we are sure that diversification is really a pledge of your success.
But we also may say for sure that it may bring a lot of trouble if you
use it wrong.
Diversification
as it is understood at HYIP market means that you invest your funds
in many projects at once, thus spreading the threat of losing your money.
If you have $100 you invest it to different 10 projects giving $10 each
instead of investing the whole sum into 1 project.
Unfortunately,
this oracle has one drawback. It is as follows: you increase your risks
while diversifying your funds. If you invest into 10 projects you make
your risk 10 times higher. Of course, this should be treated as a pure
math, you cannot just multiple. But here is an important succession
here, which cannot be neglected.
If you
hope that just spreading your funds will decrease risks, you are mistaken.
Risk wont be decreased, it will grow, because a few programs from these
ten you invested in will SURELY become scam, as 10 program are not a
program. But this risk will be DIFFERENT.
And this
is the sense of diversification method. When you invest into a few programs,
you do not lose THE WHOLE sum. And this is the pledge of diversification
and perfect investment strategy. Having secured your rear, you may move
forward, even if one of those you gave your funds to falls down.
But you
should remember about interests. And this point is important for proving
our opinion that diversification is just another problem solution and
it should be understood while implementing it.
While
diversifying your funds, you not only keep them safe from unnecessary
problems, providing yourself a chance even in case some of those programs
are SCAM at the same time, you spread your profit as well, and having
lost $10 of $100, you would receive only $0.9 (is you receive 1% daily).
Accordingly, to compensate $10 you lost you should not only refund your
initial deposit but also add $10, which is more difficult under such
circumstances.
Accordingly,
you receive the rest of your funds even after loss, but thus you don't
receive universality, and we are sure that investors should mind it.
Thus, investing $100 in a good program once you may hit the mark and
receive a good profit. But do not let diversification rule drive you
limitlessly. As you see, this is not the best alternative. We hope,
you understand it as well.
In each
separate case one may use an unusual diversification method, and the
first line offering diversification in any advice doesn't necessary
mean that this is your clue. Even if this solution has been dictated
by experience.
You better
drive your efforts to the search of the only one, and restrict you in
your diversification. Otherwise you may push yourself to the limits
(investing into one program, or, on the contrary, when you cannot control
funds coverage), and risk will be determined by an individual risk of
your each separate deposit. Be clever.
" Winners must have two things;
definate goals and burning desire to achieve them."
Diversification is Best Way?
