When you look at trading from a macro stance, you will quickly see that the power of consistent trading, coupled with compounding returns will have an enormous impact on your Annual Performance Report.
I am excluding taxes from this equation as this is meant to inspire some trader minds. We can discuss real tax cost and cuts (Trading in your IRA Account) in another post.
Let's jump right in.
If you can produce a 50% return in a years time and do this for ten years in a row, then you are in an elite category. Let me explain if I may.
Before I begin I should side note that if you can put up these numbers for ten years then you can probably get a job at any financial firm you chose. But that is another post altogether.
Let's say you start your first year with just $1,000. I know that is a very little amount and that is the point. This will show the enormous power of consistent trading along with a compounding trade account. In 5 years that $1K account with a 50% ROI is now $7K and in ten years it is $57K.
That's right...1K into 57K in just 10 years. Let's break it down.
I hope this inspires you to think longer term when analyzing your trading results. This can help you to think outside the box in terms of different positions and strategies. It does not need to be all about an Hourly chart. Back up a bit from those micro views. Slow down your process.
Please comment below or share if you like.
Great Trading Everyone :)