Compound Interest

[brunty122]

Hi,
After having a quick look on a compound interest calculator I was quite surprised at how quick a small bank can grow. As there are a lot of experienced traders around on this forum I was just wondering what is possible in terms of average daily earnings. I have heard that 10% of your bank can be achievable but would imagine this would be quite hard to reach.

I am aiming to make 5% of my bankroll on average every day and I understand it would take work to get there but is this consistently achievable every day?

Thanks
Mike

[ShaunWhite]

It certainly won't be consistant every day and it will probably vary month by month, season by season too.

You don't say the size of the bank but 5% of £50 is a very different proposition to returning 5% of £10,000. The available liquidy will depend on which markets you trade. Don't get too carried away with the fantasy end of your compound interest spreadsheet, that's not really how it works. If it was you'd only need to return 1% a day on a starting bank of 1000 to make 50,000 a year. If only it were that simple.

If you are new to trading, I suggest you spend a few hours watching Peter's excellent videos on YouTube. He covers a huge array of topics including issues around having a larger bank.

[Dallas]

His latest video is very relevent to your question
https://www.youtube.com/watch?v=tyQ2mmmX_7o