Tuesday, February 10, 2009

Compounding and reducing risk

A good investment will allow you to choose between compounding your interest daily or NOT compounding your daily interest. If you choose to compound your interest, daily. Every day your interest is added to your principle. If you have an account HERE you can choose to compound your Daily interest in any amount from 0% to 100%. Normally the best way to reduce risk is too get your original investment out as soon as possible. In a good program you can choose to NOT compound your daily interest AND allow it to accumulate in your main account balance which is always available for withdrawal, subject to minimum limits.

Depending on the type of investment and your skill managing it, will determine the best risk reduction methods to use. In an auto surf where you get 9% for 15 days you have a net of 35% after 15 days. I would recommend getting in near the beginning when the deposits are increasing quicker than the withdrawals. AND run the cycle 3 times for a total of 15 days at which point if you invested $100 you would have about $246,
because every 15 days you are compounding 35% ($35) in interest on the $100 for the first cycle, next cycle you will have $135.00 + 35% ($47.20) interest, and on the third 15 day cycle you will have $182.25 + 35% ($63.78) interest for a total of just over $246. It is at this point that you withdraw at least your original $100 plus fees (making you even) or MORE (leaving you in profit) but leave at least $100.00 in and repeat the process. Now you are working with all their money thus severely reducing your risk of losing your money.

Then the money you take out you invest in another surf club. The one linked to here is the one I used for the example above where they pay you 9% interest for 15 days. But they do not allow any DAILY compounding (UNTIL your 15 day cycle is complete, THEN you can take that interest earned and add it to your principle) and REinvest All that for another 15 days.

The account HERE is the one referred to in the prior example where the investment term is 180 days but they allow full control of the compounding on a DAILY basis, and allow you to withdraw your interest daily to your AlertPay or Liberty Reserve.

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