Posts Tagged ‘ compounding ’

A few figures

So with a fresh week ahead I thought I’d get down some basic figures about my challenge. The most important factor of the challenge is going to be compounding good results. Einstein called it the 8th wonder of the World and he’s a lot smarter and wiser than I’ll ever be so I’ll take his advice and use it smartly and intelligently (he hopes).

These are very linear estimates and need to be taken with a pinch of salt as trading is rarely as straight forward as these numbers make out but they should give me a rough guide of what to expect and how I can make my money work for me.

Taking the most basic of compounding models of increasing my pip amount at the start of a new month will mean I need to average 37% growth a month to hit my target by December without a month off in August. However, by stepping the compounding up to weekly, if I average 8% per week I will hit my target by week 36 of the challenge. As you can see that is a good 12 weeks ahead of monthly compounding. I am fully aware it will be nearly impossible to hit 8% every single week as there will be weeks of negative growth but I am also banking on the fact I’ll have weeks which smash the 8% target so hopefully if I keep my head together and my nerve, the target should be hit before the year is out.

It will hopefully be good entertainment and a serious challenge for me so win, lose or draw I’m looking forward to the weeks and months ahead. Place your bets now..

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