The Magic of Compounding: Trend Following Principle

Captain James T. Kirk said it:

“Nothing is unknown, just temporarily not understood.”

There is only one way to profit in the market. You must apply a systematic approach over time, compounding as you go. Don’t be so naive to expect you will get rich overnight. Remind yourself that patience is a virtue when it comes to trend following. You must have the discipline to work within the structure of your system. For example, if you can manage to make 50% a year in your trading, you can grow an initial $20,000 account to over $616,000 in just seven years. Trust that time and the power of compounding will take over if you stick with your system. You think 50% is too unrealistic for you? Do the math again using 25%. In other words, compounding is essential.

Read this great article that explains how compounding may not take your breath away at first, but over time it pays off, and pays of huge.