Saturday, September 24, 2016


If you can achieve a 10% return per trade and you reinvest the profit each time, after 25 trades your capital will increase 10 times. (I used this cool calculator do produce the result.)

That means if you can trade every business day and gain 10% on every trade you can turn $100 into $1000 in one month, into $10,000 in two months, into $100,000 in three months, into $1,000,000 in four months.

I have not heard of a buy and hold strategy that can turn $100 into $1,000,000 in under a year, so it that's our goal - to achieve that in the stock market, or to achieve something remotely like that in the stock market - then arguably we must adopt a trading type strategy.

Producing a 10% return every day is itself an improbable goal, and there is probably a high likelihood a person attempting it will lose money instead of profiting, so this is at the very least not complete advice, and in the worst case attempting to apply the kind of strategy it suggests could lead to serious losses. This essay is just me trying to think what I might need to do to achieve a particular thing.

No comments:

Post a Comment