Nothing is unknown, just temporarily not understood.
Captain James T. Kirk
There is only one way to profit in the market. You must apply a systematic approach over time, compounding as you go. Don't be so naive to expect you will get rich overnight. Remind yourself that patience is a virtue when it comes to trend following. You must have the discipline to work within the structure of your system. For example, if you can manage to make 50% a year in your trading, you can grow an initial $20,000 account to over $616,000 in just seven years. Trust that time and the power of compounding will take over if you stick with your system. You think 50% is too unrealistic for you? Do the math again using 25%. In other words, compounding is essential.
Hypothetical investment of $20,000 (annual rates of return compounded)
| 30% | 40% | 50% | |
|
Year 1
|
$26,897 | $29,642 | $32,641 |
|
Year 2
|
$36,174 | $43,933 | $53,274 |
|
Year 3
|
$48,650 | $65,115 | $86,949 |
|
Year 4
|
$65,429 | $96,509 | $141,909 |
|
Year 5
|
$87,995 | $143,039 | $231,609 |
|
Year 6
|
$118,344 | $212,002 | $378,008 |
|
Year 7
|
$159,160 | $314,214 | $616,944 |
