Make money online and reduce risks, Forex playing versus HYIP investment.

Forex: Make money online and reduce risks, Forex playing versus HYIP investment.

Making money online is an exciting experience that may bring you much joy and content from the very process to the final profit earning. If you really want to achieve success in this life you should not fear risking or losing because the fear prevents a person from developing into personality and advancing to new horizons. While online financial operations may implicate some hardships and problems you may cope with them and may manage them with good preparation, accurate information and right view, as we have said previously.
Today we are talking about two money making schemes commonly practiced by many people around the world. We would like to show what is better: forex trading or online investment projects – so that every person who considers to start earning money on the Internet could see what risks they face and what is the most optimum choice for them if they want to earn extra cash for their needs and desires with few losses. Below we present you a comparative analysis of both investment industries with advantages and disadvantages shown per specific categories.

 

Amounts

When you decide to earn money on the Internet it is the question of how much you can spend and how much you want to gain. If you are quite satisfied with 10 to 30 extra bucks you may feel free to participate in any of the two investment businesses we are considering here. HOWEVER, there is a significant difference in how much you invest with forex and how much you spend with a hyip to earn these plain ten dollars.
Forex markets are markets for people who have sufficient (if not HUGE) funds to waste them for playing with money. Usual “micro” lot on forex is 1,000 units. For example, with USD/CHF the base currency is US dollar, therefore if to trade 1 micro lot of USD/CHF it would be worth $1,000. Yeah, your real deposit may be much smaller than that amount, but do not be so stupid and forget about the fact that you will repay the lots you used in case of your loss.
On the other hand a typical HYIP program usually starts with amounts as little as $10. Even if you invest $200 you will lose only $200 when the program fails. But with forex you lose more than you deposit otherwise you will face criminal charges.
Reputation and credibility
Dealing with forex brokers or with HYIP traders you absolutely rely only on their honesty and due diligence. You don’t know these people and they are not your close associates whom you can trust with closed eyes. Still you participate in the game.
You are mistaken if you think that as long as forex market is regulated by some rules and over the recent time it has been cleaned up of swindlers and fraudsters its reputation will save you from crashes. If a broker fails whatever a reputed person he is you will lose all your money the same way you lose it with a HYIP project which some people view as scam programs.
The funds deposited for trading forex contracts are not insured and never get a priority in case of bankruptcy. Even customer funds deposited by a dealer in an FDIC-insured bank account are not protected if the dealer faces bankrupt.
Besides, when trading on forex the forex dealer determines the execution price, so you are relying on the dealer’s honesty for a fair price. Meantime, with a HYIP program everything is clear and transparent at the very beginning. The project does not unveil its trading strategies and you don’t care for the whole process of money making, you just make a deposit and walk doing your everyday chores. There is no need of your participation in trading and close monitor of transactions. While at forex you have to participate, consult, ask, control and monitor. This brings us to our next category: Education.
Education
The investment industry as a global financial institution is meant only for top qualified, well-trained and skilled individuals and companies. An ordinary person with no specific education cannot participate at stocks exchange, for instance. Neither he can deal with forex if he has no knowledge of the market instruments, its trends and laws.
In order to participate in forex trading you should take some preliminary training courses to learn basic concepts and ideas. You should be a business-oriented person who has good skills of controlling sophisticated financial processes. Because the dealers and brokers with who you work are not your mother to care for your wellbeing and if you do not ask something you SHOULD know it will be all your fault if you fail. But how can you ask something if you are not qualified and skilled in the industry and you are not aware of every single issue that you must clarify in advance.
With a HYIP program you need know nothing about the industry where the program makes its business except a general explanation every project gives. You just should determine the successful program and make a deposit of some funds. The whole work including the allocation of your funds with the proper investment markets and monitoring will be performed by the HYIP itself. You just gain your interests and walk away with cash. Only questions that may arise are related to withdrawals, interest delays and problems with the website access. Website access and the Internet related issues is our another important category.
System breakdowns
When you who have some Internet issues with connection or your PC you won’t lose anything with a HYIP because your deposit remains safe at the account and continues accumulating percents paid by the project.
Even if a website of a HYIP project goes down due to a DDoS attack or deliberate demolition caused by the owners so as to run away with investors’ money, a user only loses the money deposited because in fact the interests are not your real money – these are your gains, your bonuses. So, if you deposited $1,000 you will lose this amount when there is massive system failure of a HYIP. BUT, the problem may be resolved and it would turn out that there was some minor issues with the company servers. In this case you lose nothing at all.
The situation with forex trading is quite different. In case there are connection problems or issues with your computer machine so that you cannot access the trading and participate in it monitoring your transactions you will lose incomparably more than there is in your account. Because at forex people trade not with their actual balance money but they borrow huge amounts from their dealers and trade. After the trades a player should give back the amount he/she had borrowed. Thus, if due to technical issues you cannot place new orders, execute running orders, or alter or cancel orders that were entered before, you may get into a pretty hole! You will pay dearly for YOUR minor Internet problem.
Market volatility
Forex market is bound to many conditions that cannot be controlled by a single individual. While being a skillful and qualified trader you may control your dealer you cannot prevent the events related to the government policies and global changes in the world that greatly impact the currency rates. Changes in the foreign exchange rate between the time you place the trade and the time you close it out influences the price of your Forex contract and the future profit and losses related to it.
You always hear the news that the currency markets react to the governmental and other important financial and economic reports like US payroll report or the statement of Bank of England on further supporting low interest rate.
Sudden crashes at stocks exchanges, the change in the life of a large company or corporation, panic perception by investors of certain events may also greatly affect forex trading. These conditions you cannot control. Every ordinary person cannot sit and trace all these conditions and changes. If you want an investment with little headache you should take into account the fact of the constant efforts to follow all the news and reports so that on the basis of a logical analysis take a quick decision whether to place a new order or withdraw the old one.
On the other hand, a HYIP provides a customers with a flexibility of a don’t-worry investment. You just inject your deposit and continue your usual life while your interests go to your account. It is the HYIP traders who have a headache about how to trace the funds they allocate to bonds, stocks, or the much talked forex markets.
Other force majeure
There also other risks involved by forex trading like interest rate risk and credit risk. Interest Rate Risk is based on differences between the interest rates in the two countries represented by the currency pair in a Forex quote. Credit Risk is a possibility that one party in a Forex transaction may not honor their indebtness when the deal is closed. This can occur if a bank or financial institution goes bankrupt.
HYIPs bear all these risks themselves. Investors are not involved in the sophisticated processes. As the project remains viable and strong it continues bringing money. The only thing that may happen can be alleviated if you have enough information about the definite HYIP. We talked about how to determine a relatively viable and serious investment project in our previous articles on this subject.
Life situations
There are many stories on the Internet that report the cases of tremendous losses people suffer at forex trading. While the largest amount investors lose with HYIPs may account for $10,000 or maximum $20,000. Forex traders lose hundreds of thousands of dollars, remember HUNDREDS OF THOUSANDS OF DOLLARS. This is again because your lots exceed your initial deposit.
Here is one such failure story:
John, who did not want his real name published, works as a technical consultant in an investment firm.
He claimed that he was not aware that he suffered so much in losses until it was too late.
The reason: He had trusted his bank’s relationship manager and the bank’s services, and had relied on that to keep him posted on his investment.
However, one investor coach we spoke to said that it can be hard to pin blame on the relationship manager. The investor is responsible for his investments. (See report on facing page.)
John said that every time before he made a transaction, he would call his relationship manager to check on his account balance.
On top of that, the bank would usually post a notice to him to let him know how much he had made or lost in a particular transaction after it was completed.
He would receive it in about a week.
However, it now appears that these were insufficient measures.
The coach investor we spoke to called such manual tracking ‘primitive’.
But for John, this had worked well since 2006, when he started investing in foreign exchange trading through his ABN AMRO wealth management account.
He had set aside $50,000 of his savings to open his account. Over time, he traded in higher amounts as his returns from each trade increased.
Then, things started going wrong in August this year.
From August to October, John, who had hoped to get bigger returns with the volatile markets, placed several trades of more than US$100,000 ($149,000) each time in the US dollar and the Australian dollar.
On 15 Aug, he said that his trades made a US$129,000 loss, and John is now claiming that he did not know about this until a month later.
He claimed he did not receive the weekly notice on that transaction, and found out only in the monthly statement, which states the profits and losses made during the month.
He also claimed that he had been calling his relationship manager before he found out about the loss, but was not given the information earlier.
He said: ‘When I called, I wasn’t informed of the losses. I presumed that the profits from my other transactions had managed to cover my losses. I was told there was still an excess in my account.’
This led him to mistakenly believe that he had more money in his account than he really had, John said.
After the loss in August, he placed another trade, which resulted in a US$190,000 loss on 19 Oct.
He said he knew the risks of forex trading, and he had a ‘stop-loss level’.
‘I had a buffer amount of losing no more than US$150,000,’ he said.
‘By neglecting to tell me that I had made such a huge loss, the bank exposed me to a very risky situation and caused me to over-extend myself.’
He said: ‘If I had known I had to top up my account with US$129,000, I would have lowered my trading limit.
‘What was the possibility that they missed out such a huge transaction? I even called them regularly to check.’
Frustrated, he wrote in to the bank demanding an answer.
He said the bank apologised for the error, but he was not satisfied.
When approached, a spokesman for ABN Amro said: ‘As (part of) the bank’s policy, we do not comment on individual client matter due to client confidentiality.
‘We have taken the issues raised very seriously and conducted a thorough investigation and review.
‘We believe that our current processes and the steps we have taken are in line with market’s best practices. We will continue to actively address any further concerns the client may have.’
This is not the isolated case, there are many such cases when not only ordinary players but brokers and dealers themselves lose huge amounts of money.
HYIP industry is less unpredictable than forex market as with the stable investment project that you have chose with thorough research will surely bring you profit and in many cases will pay your interests even at times unprofitable for the program itself. Because, many HYIPs keep the so-called emergency funds while there is no such option for you with a forex dealer. Besides, on account of its complexity and sophistication the forex trading cannot offer you multiple participation, in other words you cannot afford to work with many dealers because you won’t manage it on a physical level – forex, as we have said many times today, needs much time, concentration and monitoring. Meanwhile, HYIP industry allows you to participate in a number of investment projects without your direct control.
In the end
You may have heard that forex brings great opportunities for making huge profits. Yeah, we may say with confidence forex indeed is a highly profitable market, but huge money may turn to huge losses. And while with HYIPs you lose just YOUR money, with forex you lose not yours but you should cover these expenses.
Among other things forex does not provide players with such flexibility in deposit options like HYIPs who offer a wide range of ecurrency and other payment methods. With forex you should have your bank account which is not affordable for many people today. With a HYIP you needn’t to have a bank account. You just need an ecurrency wallet which will allow you to easily enter and withdraw your money from the investment project.
If you got interested with a HYIP industry after reading the article we advise you to go to Hyip.com, HyipBanker.com, Hyipmonitor.com, Hyipexplorer.com and HyipNews.com websites to learn more about current investment projects that you may select to deal with.
Money will never be too much. As one wise person said with the growth of the wealth there is the growth of people consuming it. Besides, there is the growth of things you supposedly “need” to have. Anyway, people have always been trying to earn extra cash to pay for both the items they need indeed and the items they want. Well, that is not bad in fact as it reflects the natural quest of the humanity for the perfection and good life. Be sure to make the right choice of a road to your happiness and fortunes.