Here is something from @Clint that I picked up in his member spotlight… I wanted to post it here so it’s handy for me.
I remember running all sorts of wild compounding scenarios that would make me a millionaire in 10 months, 10 weeks, 10 trades, I did compounding spreadsheets every which way till Sunday before learning what I’ve learned.
But Clint mentions/outlines a realistic compounding scenario below
"… 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?"