Forex Miracle of Compounding

How To Profit From Forex

Forex Compounding

First you must understand how money grows through compound interest.

Compound interest has been called the eighth wonder of the world. And with good reason. It magically turns a little bit of money, invested wisely, into a whole lot of cash. Even Albert Einstein — a bit of a smarty pants — is said to have called it one of the greatest mathematical concepts of our time.

Here’s the gist: When you save or invest, your money earns interest or appreciates. The next year, you earn interest on your original money and the interest from the first year. In the third year, you earn interest on your original money and the interest from the first two years. And so on. It’s like a snowball — roll it down a snowy hill and it’ll build on itself to get bigger and bigger. Before you know it … avalanche!

The above from Kiplinger’s ‘Behold the Miracle of Compounding’ article explains how saving a little money now can turn into a small fortune later. Consistently is the key, it works even with small sums of money turning them into large sums of money quickly. We reach our forex goals with a Forex Savings Account.

A Forex Savings Account

Careful planning now pays dividends later. You know how people get themselves into large credit debt rather quickly is because they are making frequent withdrawals at a high interest rate and it compounds together and over several years becomes a staggering figure. Reverse that action and make frequent deposits while earning at a high interest rate and you will be able to save a large nest egg account rather quickly.

Starting with $5,000

Using the compound interest calculator from Money Chimp we can see how starting with 5K we can grow it into $153.430.38 in just 10 years.

Do you know if you started with 10K that would be $207,256.29 due to compounding interest.

Realistic Forex Returns

Legendary investor, Paul Tudor Jones and his Tudor Investment Corporation has had a total return of 9,038% over the last twenty three years. Tudor managed $17.7 billion in 2007 so we have to take the size he is trading into account and advantages to use not to be having to try and move in and out of billion dollar positions. He is pretty legendary alright, Stanley Drukermiller avoided losses and made good profit from the 87 crash through the last minute advice from Tudor Jones. According to Drukermiller himself in Jack D. Schwager’s classic book on traders the New Market Wizards. A must read.

Tudor’s excellent track record and legendary status,

Ambitious Forex Goals

We are on path to beat that return and most likely since we are able to trade in the forex market and not have to worry about managing entering and exiting multimillion dollar positions surpass that tremendous forex return. After 23 years our goal is at least $3,583,079.45

Continued Compounding Interest and Deposits

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