Trading Reports

Small Monthly Gains Add Up: Compounding

Albert Einstein had this to say about compound interest...

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."

Here's some maths...

2% compounded return per month for 1 year = 26.82% return

3% compounded return per month for 1 year = 42.58% return

4% compounded return per month for 1 year = 60.10% return

I focus on breaking goals down into systems with measurable, achievable targets.

Each month I start with a goal of achieving X% return and focus on executing the systems daily to achieve that goal.

At the end of the month I'll evaluate the outcome and my performance. What went well, what could I improve on etc.

I know I'll have some terrible months, average months, good months and great months - that's part of the game.

I'm not focused on 'the one stock that'll make me rich'. I'm focused on consistency over months, quarters and years.