Here is a quote from portion of @clint 's interview as an honorary fxman… a realistic view/approach to compounding…
- If you could give just one piece of advice to newbie traders, what would it be?
I would urge newbies to learn the power of COMPOUNDING modest, but consistent, daily profits — and, then, letting those profits grow exponentially to build wealth.
There are three elements here:
modest profits — don’t take huge risks swinging for the fences;
consistent profits — this means accurately following a trading method which has a high win-ratio; and
compound profits — let your profits accumulate in your account; and, as your account grows, increase the size of your trades in proportion to the size of your account.
If you can consistently AVERAGE a net profit of just 20 pips each day, you can earn an average 1% increase in the value of your account each day, while trading with no more than 5:1 actual leverage, and limiting your risk to less than 2% on each trade.
A steady 1% increase per day
= a little more than 5% per week (compounded over 5 trading days per week)
= a little more than 24% per month (22 trading days per month)
= almost 1,000% per year (240 trading days per year, allowing for vacations and holidays).
Where else can you legally make 1,000% per year on your initial capital, without taking extraordinary risks?
This is a key part of my strategy. My strategy is still in pieces!!
However, it’s coming together slowly! 
KC