How I Made $47,692.27 In A Single Day
The Subtile Trap of Trading
Day Trade Extreme
The Psychology of Price Movement
Trading Stocks and Options as a Business
Inside Days Chart Pattern Course
Free Forex Trading Course
By Dr. Jeffrey Wilde
I am going to show you how it really can happen with the help of an age-old principle.
You have all heard of the miracles of compound interest. The problem is that we don't pay very close attention to it because we usually associate it with low paying savings account rates. Let's face it, the thought of money compounding at 5% isn't very exciting! Doubling your money every 14 years or so will not make you rich, unless you already have a few million stashed away.
Now how about making a 5% returns every week? Think about that for a moment. You may still think what's the big deal about 5%? First, remember most banks only pay 5% and that's for the entire year. Once again, I am talking about 5% in a week!!!
Still not impressed? Well let me tell you that before I learned what I am about to share with you I wasn't impressed with a wimpy 5% either. I wanted to make "MONSTER TRADES", ones that would produce 200%, 300%, 400%, even 500% or more. All I wanted to do was buy the next undiscovered Microsoft and ride it all the way to a nice easy early retirement and life of luxury. That's all I was asking for!
So, anyway... Even a 5% return per week didn't really excite me until I began to look much closer at the power of compound interest. What I discovered changed my mind real fast, because... It literally can provide you with wealth beyond your wildest dreams. Wealth so huge...
Take a look at the chart below and I think you will be blown away too. In this scenario starting with $10,000, you would be taking your 5% winnings and reinvesting each week for 52 weeks.
$10,000 At 5% For 52 Weeks
Not too bad right? Unless my math is wrong that is a 1200% return in 1 Year! All for finding one simple trade per week!
Ok, let's take this thing one step further. Say you stuck with this one little
technique for another 52 weeks.
$10,000 At 5% (continued)
All right lets recap what we've done. At the end of 52 weeks our initial $10,000 investment turned into a healthy $120,418. By continuing the process for just another 52 weeks we now have a grand total of...
$1,522,422 0r A 15,000% Return
In Two Short Years!
I think that may be enough to put a small smile on your face. Perhaps take the family on a quick trip around the world or kiss your bills goodbye forever. Best of all it can give you the ability to do things where and when you want. In case you just might be wondering what would happen if you stuck with this "simple little technique" for another 52 weeks...
Now before we get to carried away with the staggering profits of compounding... There is a catch... It only works if you have an investment vehicle or strategy that can produce 5% gains or more on a regular basis. And this is exactly what Trade Master helps you do...
Will you make this much? Maybe and maybe not as each trader’s skills and abilities will affect the outcome. So what if it takes you an extra couple of years? So what if you only make 10% of this figure? I still think you would agree that the results would be more than satisfactory!
Forget about the huge numbers I have mentioned, because the point I am trying to bring home here is... You don't have to make the “Monster Trades" to make big profits. Just be consistent and keep locking in the small profits. Over time the power of compounding can achieve some eye-opening results!
So what can get in the way of you really making this a reality?
Losing trades: Unfortunately they are part of the game and unavoidable. The only time they become a problem is when a trader lets a small loser turn into a big one.
Greed: Traders who are greedy and only looking for "Monster Trades" will not even be interested in this technique. Maybe they will give it a quick try, but the thought of making really big bucks will force them to lose their focus and abandon this simple strategy.
Trailing Stops: failure to place trailing stops will absolutely sabotage the results. There is never a way to know when a stock is going to jump 30, 40 or 50 percent or more. By placing trailing stops you will get lucky every once in a while and catch ones of these big trades. By doing so you will easily off set any losing trades and it will also ensure that you maintain at least a 5% return per trade.
Losing Focus: A trader will be most vulnerable to losing focus and abandoning this strategy after they have a few losing trades. Any time this happens, just go over the compound interest tables that I have provided and this will help with seeing the "Big Picture".
Taxes: Yes, that dirty five letter word. If you are trading in a retirement account then this is not a problem. On the other hand, regular trading accounts are subject to the usual capital gains taxes. But, obviously this is a problem with any type of trading strategies you use. Taxes will definitely slow you down, but... If you keep swinging away and "Hitting Singles" then you will eventually bring in some serious profits!
Here's another great article from Jeffrey - 9 Deadly Trading Mistakes!