This might help out some people especially with their emotions when day trading.

I’ll start with $1,000 as an example. To turn $1,000 into $1,000,000 you need to double down your $1,000 up to 11 times or make 730%.

What got me to write this post was some knuckle head said “If you buy in at $100 & it drops 20% to $80… then recovers 20% that’s only $96.”

So let’s get into it….. Every 1% you earn is compounded on the amount that was in there before. Example 1: $100 + 20% = $122 Example 2: $120 + 20% = $148 Example 3: $144 + 20% = $181

So if you start off with $100,000 & day trade making 1% per day for a month (30%) you would now have $135,000 … now let’s say you make 50% on your $100,000 ….. $164,500

Seems like a lot of you failed at understanding compounded assets.

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