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Success is nothing more than a few simple disciplines, practiced every day. You too can use the Forex as a vehicle to your personal prosperity and lifestyle. Let us help you achieve your goals.



It Is Like The Tortois And The Hare

Most of us are attracted to Forex trading because of its speculative nature. An opportunity to make money more “easily” than our current situation affords.

The question I pose in this article is what is deemed to be a realistic return on risk. Consider that you have a spare or free $1000 that you can afford to risk what annual return would be realistic?

If we placed our $1000 in a bank account that returned say 5% per annum our account or equity ball would rise to $1050 in 12 months. It would take a little over 15 years compounding annually to double our equity to $2000. Of course, this would be slow and steady but with very minimal risk. If you deposited $80 into your bank account monthly, then at the end of those 15 years your balance would be a little over $23,000 with a profit of almost $8000. It would take approximately 25 years for your deposits to equal your interest return. Your contributions would be $25,000 and your interest return a fraction over $25,000. As you can see it is slow and steady, but it is for the most part very secure.

Now let us take $1000 and speculate on the Forex using the power of compounding. Let us be ultraconservative and assume a monthly return of 1% without any monthly contributions in 15 years our equity would have grown to $6000 and 25 years almost $20,000. Your contribution would be the initial $1000 and the profit $19,000. Of course, you would have to allow for your time to analyse, select and place trades.

Next let us take the same $1000, but also deposit $80 a month and still assuming a 1% risk and return per month. Then in 15 years the equity would be $46,000 and 25 years $170,000 approximately.

Any sound Forex strategy should at least return 1% per month. It shows you that slow and steady with time can produce a very tidy retirement lump sum for part-time traders.

In the chart below you can also see the result of a 2% per month return and our goal with Trading Made Simple of 6% (not guaranteed) per month.

A slow and steady approach is realistic but requires much patience. It is slow to begin with, but when compounding takes effect over time the results become exponential.

It Is Like The Tortoise And The Hare.

 Suggested reading:

The Richest Man in Babylon by George S. Classon

The Compound Effect by Darren Hardy


If this is of interest to you for the less than a cup of coffee a day go directly to the access page.