For those of you who want to witness the true power of trading forex then this is what a compounding account can do for you!! Compound interest means the interest paid on both the original principal and on the accumulated past interest.

Using what's commonly termed a "fixed fractional" trade sizing system, a consistently successful trading strategy can become exponentially successful. Let's say you have a trading system that brings in $20 per trade when you first get started. Over the next 1000 trades, if you keep risking the same amounts as when you first started, you'll make $20,000. However, if you increase the amounts you're trading proportionally to the increase in your account balance, you'll make substantially more.

If you started with $1000, let's say you double that to $2000 after 50 trades. Using the fixed fractional system, you now double your trade sizes, and as a result are making $40/trade - and you're maintaining the same level of risk, since you're continuing to trade with a "fixed fraction" of your total funds. After another 50 trades you've doubled your account size again, to $4000. Time to double your trade size again - so now you're making $80 a trade.

Tips :

  • Choose a good forex broker
  • Trade in at least 2 forex accounts.
  • Trade with news guidance
  • Set daily target only 10 or 15 pips.
  • Intraday trading only
  • 5% maximum risk
  • When target 10 - 15 pips is reached, close all trades position or order
  • Do not withdraw, stay compounding

Here is other examples of starting balance $10,000 compounded monthly at different rates.

  • Month 12, risk 5% : 17,958.56
  • Month 12, risk 10% : 31,384.28
  • Month 24, risk 5% : 32,251.00
  • Month 24, risk 10% : 98,497.33
  • Month 48, risk 5% : 104,012.70
  • Month 48, risk 10% : 970,172.34
  • Month 48, risk 15% : 8,194,007.12

Coba Power of Compounding with Marketiva atau
Coba Power of Compounding with eToro