Generating Profits For Real HYIP - Invest in Trading

This is Part Four from the series of articles about creating a real high yield investment club.So far in these series we covered the basics of creating the real HYIP and setting up your business plan. If you have not read those articles, please do that before to proceed:
- The HYIP Business - Is It Really A Hopeless Situation?
- The Real HYIP Can Exist
- Creating A Real HYIP - Set Your Basic Concepts

Most of the online investment programs at the moment are or claim to be based on forex or other form of financial trading - for example stocks, futures or options. Why is that so? One of the most important aspects is trading's potential profitability. The financial markets are highly volatile which gives the speculants opportunities to buy and sell with profits many times in short period of time.

Returns of 100% or more per year are not unheard in the trading world. Additionally, the trading can be done by a single human or even a software system - i.e. it does not require big investments and business planning itself.
The main problem of setting up an investment program based on day trading are the huge risks the trading brings. You can gain a lot but you can also lose all the money before you drink a cup of coffee (well, figuratively said).
Before rushing to create a HYIP based on risky trading you must have a long time proven trading strategy. We have seen enough of these HYIPs which were honest, but created by inexperienced traders who are trying to learn trading by risking other people's money. This is not a sound model to follow. If you want to create a long term business you must find the right balance between risks and profits.
So what, you should start learning forex right now? Maybe. Maybe not. Let's explore your options to generate profits from trading:

Trade Yourself
Most real HYIPs have started this way and failed.Who would start a program and trade themselves? Every experienced trader who achieves good result can get large investors for managed accounts or close other large private deals. No good trader would decide to deal with $100 investors, work with e-currencies and handle all the overload of running a HYIP. Usually only inexperienced traders try raizing funds this way.
If you are an experienced trader with a long time proven record and still want to start a program, you must find someone else to handle all the business aspects. Probably you'd better forward these articles to him or her and concentrate on your trading. Don't try to be a hero and do everything yourself.
If you are not experienced trader with long time proven record, then forget the self-trading option. You can still start a HYIP based on trading, but you should not be the one who will trade the funds.

Hire Trader(s)
Probably the most business sense makes to hire someone working for you. If you can get a trader or traders working exclusively for your investment club, you can market a service that can't be received elsewhere. Such a program can be a huge money maker and turn you into millionair in short time.
The problem is that the good traders will ask for a big investment to trade especially if you want them to work exclusively for you. This amount starts from at the very least $100,000 and usually will exceed $1,000,000. If trader is ready to work for you with less funds, then he probably is not good.
If you are ready to make a big initial spend and hire a good trader, you will have to perform a serious check on their background. You do not know someone whose results are too volatile, neither you want a beginner. It's probably more appropriate to think about this option only after you have had some success with your investment program and have collected large funds from your investors.

Use Managed Accounts
This is one of the easiest setups for a real trading program. The traders who offer managed accounts will trade your money without having access to withdraw them. Only you will be able to make deposits or withdrawals and thus your risk of being scammed is zero. The traders of managed accounts usually take 25% - 40% of the profits. On top of that you'll have to add your management fee. Probably the first question which comes to your mind is then who would join your program and pay extra fees when everyone can join the managed account directly? There are two main reasons for your investors to use your services:
The minimum investment. Most managed accounts require at least $10,000 minimum and most often it is $25,000. Even if your investment program has high minimum as $1,000 it will be still attractive
You can diversify. The idea behind such a program is to distribute parts of members money in several managed account services. Thus you will diversify the risks.The main problem with this option is to find good managed accounts with proven track record and high ROI. HYWD does its best to find good managed accounts so you'll be able to read about them on the site.

Use Trading Signals
A version of the managed accounts based program is to use forex or other trading signals. In this case you pay a fixed montly fee to receive buy/sell notifications from experienced traders or systems. You trade yourself, but you don't need to have any experience, just have to follow the signals.The trading signal providers usually charge $200 - $300 flat fee per month. This may sound like a lot, but just think what will happen if you trade $100,000 and make 5% monthly ROI. Instead to be charged $1,000 - $2,000 like it would happen in a managed account, you end up paying much less. The larger your member's invested amount becomes, the less you pay percent-wise. And unlike the managed accounts, you don't need to start by depositing any money (except the signals fee) yourself. The hard part is to find good signals provider. There are plenty of them, but not all achieve good results. Again, follow HYWD researches to find good signal providers.Whichever option you choose, you should understand that you are dealing with trading risk. While trading can be very profitable, it (especially the forex trading) is one of the least predictable type of investments. But there is something even riskier and with higher profit potential. Read about it in the next article (coming soon).