The idea of compound interest is simple, use your profit to make more profit instead of spending it... You can do this whilst making small regular withdrawals!
Too many traders try to get-rich-quick and in turn blow their trading account.
Instead of focusing on medium to long term returns and make their profits do the work.
Every trader knows that it is possible to turn a small amount of capital into 6 or 7 figures if they trade patiently. However, most of them always look for a faster way to become wealthy by oversizing positions to seek out a lottery win. In fact many traders repeat this process multiple times, with the exact same end result... Blowing their account.
This is why I have written this post, which is primarily aimed at all of the traders starting with a small amount of capital £1,000 or less... You need to start setting monthly % targets.
Everyone wants to make a million, that's a common fact but how are you going to get there? What monthly % do you need to grow your account at and over how many years?
You need to start mapping out your journey, track your progress and be measurable.
The illustration shown highlights the potential growth within a 12 month period using a starting capital of £1,000, growing your account by 20% per month and withdrawing £50 every single month.
If you can maintain this level of growth throughout the year, you will have withdrawn £600 and have a trading account value of £6,937.
And it all started with £1,000 :)
To round off this post I truly hope this explained the power of compound interest.
I am available via private message for any questions you may have.
Here's to your success!!!
You can grow your account at this rate by risking 2% per trade and utilising a minimum 1:2 risk to reward ratio.
This does not mean you need to be right everytime.