The cycle theory. Basics.

Dear readers. However that may be, but practice is almost impossible without detailed theoretical analysis and designing. We would never achieve what we want, if we didn`t improve the basics, our actions are grounded upon. The topic for the given article is so-called cycle theory, helping to understand and feel better, and as the result - to take advantage of some market patterns. And of course, it will be interesting for the reader of ours.

We have already mentioned the cycle theory in one of the previous e-zines. Though, we have just mentioned it, without going in particulars. Today we want to tell You in a more detailed way about it, to express our own opinion of this problem. We`d like to provoke the desire to discuss this problem on the forum.

Man always strives for explaining the sphere he is working in. To explain, realize - here is the first task to follow. The same thing happens with HYIP market. Understanding comes with experience. And, this kind of understanding allows marking out some patterns, producing… the theory. So, the cycle theory.

For those who can hear this word combination for the first time, we shall start with the basics. The cycle theory - is a theory, considering HYIP market as a process of continual cycling. If a person knows, when the cycle is going to make a move "back", one can predict lots of changes, knowing the changes in the investment world - is a way to success. Te cycle stages are shown in different changes, they can get different meanings. The most widespread and familiar is short-term and long-term deposit programs rotation. This number moves sinusoid like. Increase - recession - increase - recession… Let`s discuss the theory in a more detailed way.

So the theory consists in changing the market filling with some particular regularity, cyclic recurrence. For instance, at first there are lots of programs, paying daily on the market. Then there are more of monthly ones, afterwards again programs, paying daily, appear and the cycle recurs. What`s the reason for that? The central and the most widespread theory is that cycles appear as the result of fears peculiar to human beings. :) Sounds really scaring. Let`s be simpler and explain by the examples, given continuously by different strategists of the HYIP world.

Let`s take some market status for example. A large amount of short-term programs with incredible interests appear. What are these programs like? Mostly - it`s a scam. If not a scam - then these are very dangerous programs. It`s an extremely dangerous period. You can earn big money or smash up immediately. That`s why only foolhardy gamblers participate in the games like that. In the upshot only masters remain, who can deposit money and win the profit even in such severe conditions.

Total chaos. Though - it`s not a chaos. It`s just the beginning. People stop investing at all. I.e. people just stop to believe (roughly speaking) in HYIP and stop gambling on the market. It may seem to be a mistake. Though, it`s not the end. The thing is that spare time begins, the slackness time. At this time honest programs may keep on working normally. To be exact, they can gradually start their work. Their offers, aimed at working, not earning, strive for working as it is, they "don`t grow fussy". As the result investor get interested.

Confidence reappears and the market gets rolling again. Now it`s profitable to invest to long-term programs as well. However, as soon as the terms of long-term programs mature, complete chaos begins. People don`t know, where to invest money, and the first scammers appear, catching careless investors on the easiest things. On the most disgraceful thing. Then scammers try very hard, though they still cheat, cheat and cheat. It may happen that customers can reject this variant, in this way scammers mutate, they start to be more guileful.

Though they are still trying to cheat investors. It would be logically that more and more beginners appear in the sphere. There is still no place to invest in the sphere, because there are lots of people, some say one thing, others - completely another. In the upshot, these programs earn something as well. They give birth to insult and… fear. Fear gives rise to panic. And everything starts over again… here is an enclosed cycle.

Though, there is another important thing. As times goes by, investors working on the market for a long time appear. They need some special opportunity. None of the variants is good for them and then the line of private programs may develop and it`s also important. It would be a symbol of a more qualitative market level.

Sometimes, a radical turn can happen in view of objective reasons. For example, market collapse. Many HYIP can go broke at the result and the market may start developing in a special way.

What can we say of the situation nowadays? Market "update" can happen when the titans are defeated. The programs, having lots of customers and long working experience. As soon as they collapse - hot times will begin. Nowadays, programs that made a good showing are all of the same age approximately and the number of young reliable programs is too small. Very convenient situation. But if the old ones survive, and the new ones will appear, we shall expect another stage of development - much more of really high-quality investment opportunities. Let`s hope.

While preparing this article, we made the acquaintance of the opinions of different experienced investors, having rather good experience. So, despite similarity, each of them has his own view concerning indicators, informing of the stages of market development. It allows saying that this theory has no any scientific background that can be expressed by way of formulas, showing all the processes accurate to mathematical figures.

That`s why, however that may be, this theory will always remain nothing but theory.
For You - it`s a food for thought, own points of view working-out. Because, whatever one may say, there are rules, and generally, we can`t deny that the theory is working. Otherwise, no one would talk about it.

Brett Sherpan