Power of Small Consistent EffortsHello Traders, 👋
Today I would love to talk all about the power of putting in small consistent efforts. Furthermore discuss the power of compounding and compound interest.
Putting in small consistent effort is ideal for anyone, regardless of experience.
Whether you are new to trading, trade forex, trade crypto or even want to find a new hobby 🏑🏓🎺🎸
1.00
The first equation is simply the number 1 raised to the power 365.
The power 365 simply means 1 x 1 x 1 x 1 etc... 365 times. Anything multiplied by 1 remains unchanged, so the result is 1.
But what happens if we add 1% to that?
1.01
1% bigger than 1 is 1.01.
So if we take 1.01 and we raise that to the power 365 — so in other words, we multiply 1.01 x 1.01 x 1.01 x 1.01 etc... 365 times. You will be surprised that it equals 37.8 notice that this is almost 37 times bigger than the answer to the first equation above! 🤯
This is the result you’d get if you “did just 1% more than usual”.
The difference in effort is just 1% a day, it’s tiny!
If you can work on your trading 1% more than you are currently doing, every day. You will end up with a considerable amount of impact from that work.
Whereas if you don’t do that little bit extra every day, you will be making zero progress and contain the same knowledge as you did a year ago, maybe less.
Little steps, done consistently time and time again, compound into big, big differences. And not taking those little steps, makes the effect almost disappear.
"Compound Interest is the Eighth wonder of
the world.
He who understands it... Earn it.
He who doesn't... Pays it."
~Albert Einstein
In simple terms compound interest is earning interest on your interest.
For example
If you was trading with $1000 and you made on average 10% per month, you would reinvest your earnings each month to make interest on them. This is called compound interest.
+++++++++++++ Profit/Interest
Month 1 $1100 +$100
Month 2 $1210 +$110
Month 3 $1331 +$121
Month 4 $1464 +$133.1
As you can see each month your profit is increasing. This is because you are making profit on your profit.
The earlier you start compound interest the better. This is something millennials should learn in school!
I know most people want to jump on the million dollar deal and get rich quick.
But if you took a single penny and doubled it everyday, by day 30, you would have $5,368,709.12.
However, it's important to note that it's all about the power of doubling. If you asked the same question, but changed the doubling time to just 27 days, you would only have $671,088.64
If you are struggling on your trading journey, do not give up!
****The first step of every successful Trader : FAILURE****
Do not let a little failure scare you away from being consistent.
Thanks for taking the time to read my post! 💖
Please check out my other trade ideas!
🐱🏍🐱🏍🐱🏍
