Useful investor rule!!!

[RokokGudangGaram]

This is a translation of the original article located here:
https://bitcointalk.org/index.php?topic=5058626.msg47345560#msg47345560

Friends, let me tell you about one amazing rule that will allow you to save a lot of money. Now on the forum there are unpleasant trowels about trust managers who have been turned into fraudsters. It pushed me to share my thoughts. Please do not take this as a desire to teach you life. This is not true. I will simply tell what I adhere to myself and hope that this will help you too. So let's formulate this most important rule:
 
  If someone offers you to invest in something profitable and at the same time offers a fixed percentage of profit per month (especially, and especially if this percentage is significant), then you have a fraudster. Stay away from him

No one will ever be able to provide you with a fixed percentage of profit per month for any substantial long-term period. No one, never for anything. Is that the Lord God, but he is unlikely to do it). You may have a reasonable question: "Why?"
There are many reasons here. I do not know them all, but I will give only those that seem reasonable to me.
1. Markets are constantly changing. They change in such a way that the profit can get a minority to the detriment of the majority. And the minority is constantly changing. This does not mean that you cannot be successful in the long run. You can. But in the short term ALL traders periodically either sit in drawdowns or in losses. And sooner or later it can be so serious that such grief - the ruler of other people's money simply cannot physically pay the declared interest to its depositors. In this case, scam comes and sobering.
2. Argument from the contrary. Imagine the impossible. What really is a miracle on earth is a trader capable of consistently making at least 10 percent of profit per month on any long-term basis. I hasten to convince you that such a genius of trade trustees of their funds are not needed. Using even quite an average initial deposit of, say, a couple of thousand US dollars, this wizard of the market can make a fantastic fortune in a reasonable time. Which will suffice not only to him until the end of his life, but his great-grandchildren will remain. It's all about the so-called compound interest.
The formula of compound interest is googled in a couple of minutes. We take a calculator and count.

Here is the compound percentage formula for our rule:
 X (1+ (Y% / 100)) to the power n
where x is the initial deposit amount, Y% is the monthly interest rate in percent, n is the deposit term in months.
Suppose the initial deposit amount is $ 2,000. Percentage per month promised to you - 10. Contribution - 12 months. How much will we get from such trading in a year?
 We consider: 2000 (1+ (10/100) and we build all this to the 12th degree (!!!). It turns out: ~ 6276.85. Not enough?
And where are we to hurry? Wait, do not rush, everything is still ahead, we are a miracle - traders and do not forget that we are starting from a relatively modest amount, but we have already done roughly X 3.13 in a year. Let's look at how much our capital will grow in the following years:
The second year_6276 X 3.13 = 19643, 88. Not bad at all, right?
Third year: 61485 (here I’ll further round the numbers, removing the values ​​after the comma, so the real numbers will be even higher)
Fourth: 192449
Fifth: 602365
Sixth: 1885404. As we see our miracle - the trader has exceeded one million in just the sixth year of trading. Once again I ask: why should he mess with depositors? Well, okay, let's go on.
Seventh: 5901317.
Eighth:> 18,000,000
/// /// /// ///
In a couple of years there will be a billion, and a trillion dollars this trader will earn within fifteen years. Further consider not see the point. I think from the forum bitcointower, he will leave much earlier)

As I read this it is kinda easy to say but I find it very confusing and hard to do in a actual trading and investing. But I guess it is worth to try though.

absolutely because to get good and good things must try first, because with us not trying it will not know how to do good and profitable things too

[jimbo2000]

TLDR: don't trust anyone offering you a fixed rate of return, if it sounds too good to be true then it probably is. Great advice but very much over-complicated here.

A fixed return is possible if the creditor is absorving the risk.

Creditor runs risky investments using your money, but gives you fixed returns in exchange for lower yield. This is fine as long as there's oversight over liquidity to guarantee the fund manager didn't lose it all - it'd then become a ponzi.

Possible yes, just not the rates that people offer in many circumstances. This post hints at it. If someone could even make only 1% a day, that compounds to be a 3700% increase in just a year and a 142700% increase in 2 years. Why if anyone had a system that could create so much would they offer to let someone else access it for just a small fee or anything else? Anyone offering a guaranteed return of over about 20% (even that is precarious) per year is almost certainly working some sort of an angle.

It is easier said than done, thee is no trader in this world that would go a day in a year with consistent profit, we need to be realistics, anyone promising a fixed profit is running a ponzi scam, flexible return is possible provided the person is transparent and discipline, most trader end up losing money and there is a reason fo this, you are privy to all information

Precisely, these schemes and models might work great for a few weeks or even a few months but they'll still have bad periods, just like even the very best traders do. Therefore offering a high fixed return is never feasible and is almost certainly a scam.

[wuvdoll]

 If someone offers you to invest in something profitable and at the same time offers a fixed percentage of profit per month (especially, and especially if this percentage is significant), then you have a fraudster. Stay away from him

I never believe into HYIP kind of programs which are saying like paying interest on daily basis or weekly basis too. That is very much impossible for any business. But, in my country banks are paying around 0.5% interest rate monthly (actually they are doing per year basis and the rate of interest is around 6% to 7.7% and I'm taking the least one and on monthly basis).

Basically I'm not always ready to believe any new investment opportunities but I am looking for gaining some monthly interest from banks. I believe like 1% of fixed percentage profits will be possible for any business. But, profit sharing like 10% or 25% must not be true. We must stay away from them.

Precisely, these schemes and models might work great for a few weeks or even a few months but they'll still have bad periods, just like even the very best traders do. Therefore offering a high fixed return is never feasible and is almost certainly a scam.

Even best traders are also finding failures time to time. If there are best traders existing then they might be having their own capitals to risk and will never look for others money for their trading purposes and they will not mess up things like paying interests periodically to others. It means, they are making losses that is the reason they need new capital and that is the reason they are offering such a profit-sharing schemes.

[Bitfling]

TLDR: don't trust anyone offering you a fixed rate of return, if it sounds too good to be true then it probably is. Great advice but very much over-complicated here.

I am agree with this. In any investment market, there is market fluctuation. I am believe every investment we made, there is profitable investment and some investment loss the value. I think we should not trust to people who offering fix rate of return or promising big profits

[cluit]

Yes I’m in support of your number one rule, that it is not working out right now doesn’t mean it won’t work out tomorrow. Some people usually call it a quit whenever the market is no longer on their good side, they always think that the market is meant to benefit them always, forgetting that it goes round and does not favor everyone at the same time. Just have patience and wait for it.

[shield132]

As I understand your point is to make it clear for people that don't believe in dreams where someone promises fixed returns and for great trader, huge amount of money isn't needed. I won't talk about first one because that's scam, yeah, but second one, that's not so easy. Doesn't matter your skills, you can't decide future and you can't be that super lucky, I mean alone trading can't bring you much but other activities all together, depends on how workaholic you are...

[nur rochid]

TLDR: don't trust anyone offering you a fixed rate of return, if it sounds too good to be true then it probably is. Great advice but very much over-complicated here.

I am agree with this. In any investment market, there is market fluctuation. I am believe every investment we made, there is profitable investment and some investment loss the value. I think we should not trust to people who offering fix rate of return or promising big profits

but sometimes there are still many people interested in that. by offering attractive offers they can still get victims. therefore logical thinking is the key to not falling into the trap

[South Park]

TLDR: don't trust anyone offering you a fixed rate of return, if it sounds too good to be true then it probably is. Great advice but very much over-complicated here.

It is true the OP used too many words to explain something really simple but I appreciate the effort he went through to explain as clearly as possible why it doesn't make sense for someone to offer you a fixed rate of return, the problem is that many people will still fall in that kind of scam because they are looking for a way to make easy profits without making any effort themselves and when you add greediness to that mix then it is obvious what the result will be.

[Sarastiche]

Fixed rate of return on investment is a scheme used to attract investors, that tends to fail at the long run, several factors do have an impact on the means of return on investment, I invest base on the product or service are project developers are out to deliver.

[1Referee]

therefore logical thinking is the key to not falling into the trap

Too bad most people here think money grows on trees. It's so easy to set up a site, offer cloud mining contracts (where you in reality aren't mining at all), promise people 200% annually, and you will at least trap in a couple of dozen noobs. It might not sound like much, but when your initial investment in terms of time and money to set up the site doesn't exceed $100-$200, but people's deposits are worth thousands, you have booked a 10x return without much effort.

If you have a longer time horizon, you offer less rewards, but pay out people during the initial phase to have noobs shill your platform because they "earn" money, you will have even more success. On average, these platforms don't make it past the 12 months, which we have seen with Bitconnect as well.

The best investment is Bitcoin itself, or even other cryptos directly, but people always chase the wrong investments.

[GregH37]

The best investment is Bitcoin itself, or even other cryptos directly, but people always chase the wrong investments.

That is just due to being greedy. I have seen many people are asking like "where to invest my bitcoins" or "how to multiply my bitcoins". In my opinion they are forgetting that their bitcoin itself a wonderful investment vehicle, instead of securing it, they ate looking for risking that gold laying goose. Greedy people always easily get trapped by scammers one day or other as they rush for multiplying their capital, their brain goes fade away.

Fixed rate of return on investment is a scheme used to attract investors, that tends to fail at the long run, several factors do have an impact on the means of return on investment, I invest base on the product or service are project developers are out to deliver.

When no market is stable and not yielding in fixed rate then we cannot expect fixed returns for any investment. I guess only banks will be able to offer such fixed returns for our capital. But, world wide interest rate for fixed deposit is not good compared to what we do get from crypto investment opportunities.

[Indrawan77]

Most of the investment that said fixed percentage is almost a scam, when they unable tonpay again they will just flee, when we want to invest we need to do research and think logically, if there is an activity that always gives profit then they wont be needing our money

[Finestream]

Most of the investment that said fixed percentage is almost a scam, when they unable tonpay again they will just flee, when we want to invest we need to do research and think logically, if there is an activity that always gives profit then they wont be needing our money

Yes.Before making such investments,make sure you know what is your investment all about and how can you make profit from it. A lot of scammers today are convincing the investors to invest because the profit is fixed or even doubled or tripled from your basic salary rate.Be careful with this kind of people.They may be sound interesting at first but in the end they will just leave you pennyless.

[jademaxxiss012]

I do not really understand the topic OP but it states that holding is one key to a success of bitcoim investment as time passes by. It is just like suggested that hold now so that you will earn tripple or more fold of your invested money when you hold. Well, I just say that investing in cryptocurrency is difficult and risky so a holder must have a good decision making when trading.

[Dread Pirate Roberts]

Do not trust any unknown source that just become popular from some media . using price analyzing for comparison its great to help decide taking market action . And also the most important in crypto is " Be Realize with anything you face it " market always right .

[CoinChili]

A wise investor doesn't just believe with engaging and attracting words. If they are offering something beyond the limjt, then it is probably some kind of tricks and want fraudster to trap you. There is no easy money. Investing in cryptocurrency is also tough.

[romero121]

Being an investor it is a must to consider various factors associated with it. Most being the project, it's product, the backing team, partners associated with the project, funding team, public and private sale targets. Such a way more and more market values need to be considered, without which only on luck an user can invest what he afford to loss.

[gowobonyok]

think simply, in the world of investment it is not possible to generate profits that are "equal" and fixed every month. if anyone offers it, they just cheat and persuade you to participate in their fake project investment. because we also know, crypto market is very volatile and is unlikely to produce the same value every month and is stable. there will definitely be a period of ups and downs.

[apilpirman.bisnis]

Never hear any one about offering about some percent profit with investing your money on some project, keep away your mind like that because its really way how to make you faced scam investing and lost your money.

[carlfebz2]

Being an investor it is a must to consider various factors associated with it. Most being the project, it's product, the backing team, partners associated with the project, funding team, public and private sale targets. Such a way more and more market values need to be considered, without which only on luck an user can invest what he afford to loss.

There are indeed common factors should really be considered first as an investor.There might be some other ways to validate things
but the goal is still one thing which is to make profit on any investment we are engage on. Knowing the project potential at first isnt really enough as
been said strong and dedicated team plus into its transparency.