Every Investor should know this rule? In is simplest definition, it is the number of days, months, or years that your investment will take to become double if you divide this number (72) by this investment.
Example 1: Since most banks gives you on a CD account an average of 1% a year, by dividing 72/1=72, this means it will take 72 years for any amount to become double.
$5000 will become double after 72 years
$2000 will become $4000 after 72 years
$31000 will become $62000 after 72 years
Example 2: if they choose to give you 3% yearly or any otherinvestment that gives you 3% return yearly, it will take you 72/3= 24 years for any amount that you invest to double if you choose not to make any withdraw at all.
Example 3: If you can find some good indexe investment where you can get an average of 10% a year, it will take you 7.2 years for your money to double.
Trading is risky for sure. However, I have and I hope you show respect for any startegy that can gives you 6% average monthly.It is almost nowhere to be found. You have the chance to double your money in a year if you compound.
Very few investment can provide such return and they still carry less or more risk than trading. I would better invest my money in trading or anything risky than seeing my money seating and not working for me.
Wugot only charges $150 a month for now which is $1800. By closing a trade witha $4600 and more profit, we give a chance to our subscriber to have the money for the enire year and to play in the future with the house money.
Past result may not be future results. Anything is hypothetical. Trading has risk and you can still lose with Wugot. We can not promise or guarantee that you will make money.
However, when it comes so far to the win ratio, low draw down,great win factor, no matter how I screen Wugot, this strategy is among the top best.
Join to enjoy the ride and long live to all of the traders as well as their followers. Whoever love trading is our friend.
Lejeune Bauvil, for Wugot.
The appropriate formula is the following: Capital*(1+r)^n
This formula will hardly work with 1-5 future’s contract trading. 6% per month in this case will bring 72% per year.
Bad thing that c2 brings % measure of incomes & drawdowns to future’s trading which doesn’t show real picture of incomes and drawdowns for potential subscribers.
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Sorry, but 6% made every month and added to the equity traded doubles your money in a year.
Let me clarify my point. Lets say somebody trades 1 contract, do 30 trades per month and get 100$ per trade (average). This is his strategy proven by years of trading. It will be average 3k per month per contract and capital of 50k is required to make it 6%.
After 1st month he has 53k and 6% will be 3180$. So trader needs to do 32 trade next month to keep 6%, than 34 per month and so on. By the end of the year he’ll need to make around 57 trades to make it 6% of current capital. Or he needs to increase P/L from one trade to keep number of trades constant. It is significantly different from the strategy he traded before.
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The formula makes people scared.But great thanks.
You can go either way You can chose to increase the number of contracts or the number of trades. However, this math does not take in consideration
- The day of losses
- The length of the trades
- The day that you can not trades because of no entry.
To make it clear, the 6% may not have too much to do with the number of trades wins or losses, or wins only. It is a combination of all them, but mostly more wins over losses to keep your account grow at 6% month.
In CFD, it is much easier to be done, but it will be difficult to do it on huge capital such as over million.
The example was about average P/L numbers, also average number of trades per month used. Average numbers already include non-profit trades as well as days with no trades.
If you are trading certain setups and from your trading experience you can have only 30 setups per month in average long term, then how you can increase number of trades?
6% gain is achievable up to couple of millions by using multiple asset classes and leverage to maximize capital efficiency and dividing day into multiple trading zones.
6 PM till 2AM EST JAPAN – Forex with X/JPY pair -
2 AM till 10AM EST Germany/London DAX/FTSC/BZ/GLD futures –
10AM till 3PM EST USA - Stocks/Futures/Intra-day Options/ Day trading
But all systems have to be surgical-strike In/out profit or loss (cut the losses quickly)
I am in a plan to build a company where where I see myself multi millionaire in trading. However, it will not be in Futures trading. It will be in CFD Gold trading. It requires less capital and the money management seems to be far away easier. It will be done through copy trade system. Simple and easy math.
I assume you are not in USA, CFD is not an option for US investors.
Also, there are plenty of ways to optimize capital efficiency.Would love to hear your strategy if is not the trade-secret. IMHO Execution excellence is far more important than any secret sauce. Good Luck!
I am in the USA, but I am not from the USA. I havefamily members and friends accounts outside in which I copy trades for them. Also, there are some very few brokers that still acccept USA clients despite the barriers.I do not trade with them, but I know people who trade with them. I do not know how trustful they are, but they are getting paid easily so far.
Make sense.
Since the last Financial Law/Rule, it become harder for US investor to take advantage of certain asset classes offered in Europe.
