Platinum Swing Trade Alerts

The 10-Buck Broker (Long-Term Stock Picks)

Announcement

Collapse
No announcement yet.

Compounding Your Trading Returns

Collapse
This is a sticky topic.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Compounding Your Trading Returns

    When trading and investing you will run across the terms "compounding" or "compounding interest". Compounding means you reinvest your profits from every trade or investment after you sell the issue(stock, currency, option, etc.). You don't withdraw any money from your account so that you can grow your funds as much as possible. Compounding can be a great way for market participants with smaller accounts to gain some traction and build account value. Below is a chart made to illustrate the power of compounding. This example is only for demonstration purposes and does not account for withdrawals that an individual trader might make to cover living expenses. The best way to compound is by using money that you don't need to touch any time soon.




    The trader in this example started with $5,000 cash or $10,000 of actual buying power using a 2:1 margin account. The chart assumes an average weekly gain of +3.9% which is entirely possible with careful trading. This is the example we use for our Platinum Swing Trade Alerts service also.


    $5,000 in one year's time grew to $36,553 cash or $73,107 fully margined buying power!

    Without compounding you would end the year with around $25,000 cash or $50,000 fully margined buying power.

    WEEK REAL CASH MARGIN 2:1
    Start $5,000 $10,000
    1 $5,195 $10,390
    2 $5,397 $10,795
    3 $5,608 $11,216
    4 $5,826 $11,653
    5 $6,053 $12,107
    6 $6,290 $12,580
    7 $6,535 $13,070
    8 $6,790 $13,580
    9 $7,055 $14,110
    10 $7,330 $14,660
    11 $7,616 $15,232
    12 $7,913 $15,826
    13 $8,221 $16,443
    14 $8,542 $17,084
    15 $8,875 $17,750
    16 $9,221 $18,443
    17 $9,581 $19,162
    18 $9,954 $19,909
    19 $10,343 $20,686
    20 $10,746 $21,492
    21 $11,165 $22,331
    22 $11,601 $23,202
    23 $12,053 $24,106
    24 $12,523 $25,047
    25 $13,011 $26,023
    26 $13,518 $27,037
    27 $14,046 $28,092
    28 $14,593 $29,187
    29 $15,163 $30,326
    30 $15,754 $31,509
    31 $16,368 $32,737
    32 $17,007 $34,014
    33 $17,670 $35,341
    34 $18,359 $36,719
    35 $19,075 $38,151
    36 $19,819 $39,639
    37 $20,592 $41,185
    38 $21,395 $42,791
    39 $22,230 $44,460
    40 $23,097 $46,194
    41 $23,998 $47,996
    42 $24,933 $49,867
    43 $25,906 $51,812
    44 $26,916 $53,833
    45 $27,966 $55,932
    46 $29,056 $58,113
    47 $30,189 $60,379
    48 $31,367 $62,734
    49 $32,590 $65,180
    50 $33,861 $67,722
    51 $35,181 $70,363
    52 $36,553 $73,107
    Platinum Swing Trade Stock Alerts(FREE 14-Day Trial)

    The 10-Buck Broker (Long-Term Stock Picks)


    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!


    Best FOREX Signals Software

    Stock Market Investing For Beginners


    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."


    Terms Of Service

    Disclaimer: This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

    Promoted content: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this website and may receive commissions from purchases you make on subsequent websites. Always exercise due diligence before purchasing any product or service. This website contains advertisements.
    Best stocks to buy now Stock Market
    Best stocks to buy now
    Dow Jones TodayDJIA
Working...
X