PAMM – account (engl. A percent allocation management module, or PAMM, which may also be referred to as percent allocation money management, describes a software application used predominantly by foreign exchange market brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney)

The general scheme of interaction: control (trader) – PAMM – account (for which there is a definite PAMM-ground) – the investor. The essence of the whole scheme add up to one thing: you (investor), register on one of the PAMM-platform (a specialized service, the intermediary between the trader and investor), choose PAMM-account you like (using the performance rating and manager’s trading statistics) and throw there the desired amount of investment. This completes your job and from now the process leads by manager. The task is to trade in financial and currency markets with the assistance of your capital and capital of other investors. All profit extracted from the transaction shall be distributed between two sides. In general, the distribution is made in accordance with 50-50, anyway there are deviations from the rules that are specified in the offer – an agreement on terms of cooperation signed between the trader and investor. Also, there is indicated and the trading interval (usually 1 month), upon the expiration of which “sharing” take place. You can immediately withdraw the earned interest, or reinvest, for example, into other more profitable in your opinion accounts. By the way, if there is a drawdown (trader goes to minuses), the losses are borne by both parties, in proportion to their investments. In this case, the trader have no a profit (the position of monetary reward), until he restore the original balance.

Not be amiss to say that the investor may always withdraw his deposits. That is to say, disappointed in one or another trader, you can quickly break the unprofitable cooperation and if it is not too late – to transfer the remaining amount to more lucrative account. Anyway, no one will let you to “cheat” the trader simply because nobody else will, for this service owed the commission, the amount of the penalty for withdrawal specified in advance in the offer. To clarify the situation, here are the main advantages and disadvantages of working with the PAMM-accounts:

Advantages:

• The possibility to get an income even without any experience and special knowledge. The management of capital goes into safe hands of experienced traders.

• The manager also participates in forming a collective capital of PAMM account and that means he is personally interested in an effective commercial activity. As a rule, the higher deposit of the trader, the higher is trust towards his level of competence.

• The investor’s funds are kept on his trading account, the manager manages only a borrowed capital and can not take funds from the PAMM account. All operations with the trading account are available only to its owner.

• The investor has the right at any time to withdraw funds from the PAMM-account or vise versa to enlarge volume of investments.

• Distribution of profits is made in the automatic way, eliminating the risks associated with the human factor.

• Manager’s activity is transparent for all investors. You can spectate deals in real time by browsing the history of operations etc.

• Investor is also managed to invest money in various PAMM accounts, thereby reducing risks and enlarging his own abilities.

Disadvantages:

• Full dependence upon the manager (the absents of rights and possibilities to enter the trading process in order to correct or influence on financial results)

• Hard to find a trader. Rankings and public “stat” that is only the tip of the iceberg, you need to learn how to define experienced and effective traders.

• The absents of trader’s responsibility for the losses of investor’s money.

• Sharing the profit is not always beneficial for the investor. If dueto the old form of Control (asset management) standard aspect ratios have been considered: 30/70% (trader / investor), then, as for today they are familiar to 50×50.

• The growth of risk “drain” (complete loss) of the deposit. This kind of threat appears in the process of rapid increase of an investment capital on the account. In other words the next thing happens: profitable account / trader attracts a large number of investors and accordingly of investments and so the initial capital and the trader gradually begins to lose its value for him. Even if the manager loses, he loses 50% from his miserable sum, but if he profits, then the 50% from the general “dump” of deposits in ten times cover potential losses. Back to the roots of Control – trader actually trades only other people’s money, but already with 50% of reward, more frequent losses or total loss of deposit cease to be a serious danger for him.

Well, in the end, sure thing I can’t miss the most exciting issue, which is income. How much will I actually be earning on PAMM? I must disappoint you, no one will say you the exact amount, even the trader is unable to establish at least the minimum percentage limit. But after visiting numerous forums and thematic blogs I more or less came to an unambiguous interval of 6-10% per month. That is what about the traders, who pursue a conservative policy. Such managers will provide a slow, but the most stable growth of capital. Followers of aggressive trade may make up to 20% per month and more. But the risk of capital loss, unfortunately grows proportionally to opportunities to receive such revenue. Here, like in HYIPs pops up the question of diversification that can balance the opportunities and risks, but more on that later. Don’t forget about the possible drawdowns, even the most profitable co-operation we can not imagine without them. Under favorable conditions and the correct specific trader your annual income could easily reach $ 80-100%. Of course, this is not HYIPs, where such amounts can be acquired for a few days. PAMM – it is much more stable, calculated on a fhonest large investment, direction. There is an opportunity to invest also a small amounts (in some cases – up to $ 1), but under such percentage it is simply makes no sense. PAMM – this is an absolute alternative to the bank, where the annual percentage of time just cover the inflation. The Pamm needs a personal approach and then the results will not keep you waiting.

As an example, I will show you a rating accounts / traders with one of the PAMM-sites. In the list, of course, only the top managers with the most impressive performance. Do not forget that in the column “yield” indicates the total profit of the investor and manager! Terms of distribution specified in the individual offer for each trader.

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Getting started in investing in HYIP’s is quite easy and much easier than most other investment vehicles. Not to mentions that the rewards can be extremely beneficial, but remember along with the increased rewards become more risk, and you should only invest money that you can afford to lose under the worse conditions.

Always remember that High reward – High risk investments should only be funded with extra funds. Ask yourself the following question: if I were to lose this money, would it dramatically affect my living style. If the answer is yes, then you should not invest in a high reward – high risk investment vehicle.

Please do not get me wrong. HYIP’s can provide you with a much greater Return on Investment than any other vehicle that I am aware of, and the risk is not that great if you do a little due diligence and stay involved in the community of HYIP’s by visiting the forums and monitoring sites on a regular basis looking for warnings of failure, so you can withdrawal your funds before it is too late.

Once you have done your due diligence, and have decided which HYIP’s you want to invest in,

First; you need to find out what e-currency funds the HYIP will accept.

Second: Setup your e-currency accounts by registering at each site for free. Receiving and sending payments online are done through e-currencies. E-Currencies are the same as real money, and it can be traded online only. In order to use e-currency accounts, you need to create a FREE online account. Then you can add funds to your e-currency account via bank transfer or credit card. Then you can conduct all sorts of money transactions online utilizing your e-currency accounts. Some examples of e-currency accounts are Liberty Reserve, paypal, and stormpay etc.

Third: Determine your diversification percentages of your investment amount. I advise to diversify your funds between 2-5 HYIPs as a money management strategy. The more you have to invest, the more diversification is recommended.

Fourth: Fund your e-currency accounts by bank wire or credit card according to the HYIP’s you intend to invest in. Don’t worry, most of the funding processes are pretty intuitive and all you have to do is read the instructions in most cases.

Fourth: Join your chosen HYIP’s. Follow the instructions and make deposit from your e-currency accounts.

Fifth: Sit back and Receive payments (automatic/manual) to the same e-currency account.

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In one of our former issues we wrote of different types of pyramids, MLM and Ponzi in particular, besides we analyzed the correlation of short-term and long-term programs. However, now we`d like to supplement the conclusions with the final chord, devoting all the article to “long-term” programs, explaining the principles of their work, and the main thing is how to define them.

“Defining” is certainly rather doubtful statement, the more so as not all the programs can be exclusively referred to this or that type. Everything is very doubtful and unreliable, to rely upon with 100% confidence, though investor working experience and feeling can show who is who and You really can rely upon it.

First of all let`s decide what programs can claim to be called long-term ones, on the simple reason – the payback time won`t be earlier. Pyramids – is the first thing that comes to mind, and it`s absolutely right. Pyramids, by definition, are high yield programs with the long age.

Of course we are talking about right, competent pyramids, not about using this principle with the purpose of fast enrichment. Nothing prevents You from immediate losing, though these are exceptional cases; so – here are the basic distinctions.

The first one – the terms declared by programs. The programs, counting upon short-term are originally striving for investing maximum money from the part of investors for the maximum term. That`s the main term. They just can`t stay longer and intensify their work, just like a snowball.

200% per 2 weeks, some sort of plans, saying the terms “week”, “day” etc. (that is the boundary term You can withdraw the money) are the character features of short-term programs. And the site, of course. Their site can`t be good. Either the engine is free, or it`s the clone of any other site.

Of course, one can earn here as well… but we`ll speak about this in our article about short-term programs. Though You should remember, the interest offered is insane. Is it worth investing?

The terms offered in pyramids are more prolonged. Here we are not talking about pure scam. Different investors work different, and these programs are really aimed at more qualitative work (to be exact – more qualitative build-up of a pyramid). That`s why look – a month or two mean something.

You can find this information not only in plans. If they have been working for a month already, though they are having good potential, being a definite pyramid, You can try it. If the term allows taking a risk – try it. If everything is good, in a month already You will be able to recompense Your deposit, getting solid per cent. Besides, You can get additional bonuses from referrals.

Of course one more important thing is… the site. Yes. The site in the Internet is like an office, the face of a program. Pay attention to its quality, design, the way their content is organized, what technologies are in use. One more thing of no small importance, we were not mentioning yet, is… banal SECURITY.

Serious program takes care of this, cause modern technologies allow not just blocking the work of the site, but also… stealing money, and destroying anything violator wants. The site, designed manually, bought, is a claim for SECURITY.

That`s why, taking into account the fact whether the site is designed manually or You received it for free, You can not just rate the “paying capacity” of a program, You also rate the way, authorities can keep Your money. And…; can they do it at all.

Pay attention to entering passwords, to the connection with the site. Of course, the best variant is a private program, or the one, working through the system of offers, though it can just be nominal means to control popularity.

And low percent of course. Programs that are going to work for a long time (pyramids in particular) don`t declare any kind of high interest rate in their offers because they have nowhere to “run”, and if the business is real – then double income means double danger.

If everything is OK, but You understand – these guys are not working on the market, You deal with a long-term pyramid. It`s possible to earn with them – go ahead! The main thing – as You already know – is to be as much watchful as it`s possible.
Good luck!

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hile choosing a program you should stick to following rules.

Rule Number 1
Never put all your money into one small program, regardless of how good it looks, or how great you have been told the program is, especially if the only means of communication with them is via anonymous email. These programs will usually have a free website from Homestead, Tri-pod, Geo-Cities, etc., if thy do have the site. This goes for almost all of the frauds, but can also apply to very professional looking websites ,giving you virtually no contact point information. If you intend to invest a large sum, then you should always make sure that the program in question offers some sort of capital security. In this case, you should also try to arrange a te^te-a`-te^te meeting with the principals. If you have an up line sponsor, ask them if they have this information.

Rule Number 2
Carry out as much due diligence as possible on that particular program. If you are coming in with $1 million, you will be able to satisfy yourself about legitimacy with irrefutable proof, because you will be dealing directly with the principals. Usually an investor with $100,000 can secure a program utilizing a sole signatory account, through an offshore trading structure, and be privy to more info, but this situation is not always the norm. What about the rest of you? Forget it.
There are no public registries, no BBB listings, no bankers or brokers who will confirm anything. For the small investor, this business is based on trust and personal relationships: you know me, I know ‘A’, ‘A’ knows ‘B’, who works with manager ‘C’, who knows the trade facilitator ‘D, etc. You can only do the best with the information that is available on that program.

Do not contact any regulatory authorities to see if any complaints have been made, as this may simply result in an otherwise sound program being shut down. Use the forums that are listed in the appendices to gather as much info as you can and make an educated decision. What you are looking for is impartial advice, which is unfortunately hard to find on the HYIP forums, although the Invest Navigator website is completely impartial, so make good use of it.

Rule Number 3
Once again do not put all your eggs in one basket when it comes to the smaller Internet based HYIP’s. You should diversify by placing a portion of your investment capital into many different programs so if one venture goes sour you still have the others intact to produce income. Many small programs will close down. Funding two to three small programs with large amounts is suicide.

Focus on the overall plan, not on a program or two, unless you have found a single large program that offers a good return coupled with capital security. Build your smaller program list up to no less then ten, it may take time, but this is the correct way to go about investing in small Internet HYIP’s. If you want to achieve a lot of success, get your mind off the investments you are in, and get focused on your plan. Your ultimate goal is to eventually fund 15-20 paying programs, as soon as some pay out you can widen your program list. Concentrate on the plan not the programs.

Rule Number 4
With the smaller programs, you should aim to recoup your seed money from any one venture as soon as possible. Take your seed money back when you reach 2-1 or 3-1. Remain invested with their money and not yours from that point on. Too many small programs start out fine, we get comfortable with them and start putting extra money in before the returns from the last cycle come back, and then they fail. Do not reinvest more money before you have been paid back, no matter how long it takes. A good rule to follow is to take your original capital back as soon as possible and only keep reinvesting half of the payout proceeds on each cycle.

Rule Number 5
Do not let large amounts accumulate in small programs; take smaller profits often. Even from the most stable smaller programs, take funds back often. Taking small amounts of profit along the way versus letting a larger amount accumulate before a program goes sour will allow you to see a profit instead of missing out on what you thought you had.

Rule Number 6
Do not jump into new programs right away. Truth is many programs never make it through launch. Why would you waste your time promoting a program that had a month or two to go before you could ever sign someone up for it, assuming of course that the program even remains on schedule.

If it is good this week, it will be good next week or three months from now. Let the program establish a payout history with good customer service before investing money with them. With some exceptions, we do not join new programs right off the bat. If they are still around in another month and everyone who is participating is happy with the program, then it’s time to take another look at it.

Rule Number 7
Do not jump the gun and start screaming swindle if a program experiences some problems early on. Allow some time for the administrative end to catch up with the trading and sign-ups, as enrolments escalate. Most programs with small administrative teams have no concept of how many people can enter a program in the early stages. It does not take long to get in a real pickle admin wise.

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