Calculate how your trading account can grow over time with compound returns. See the power of reinvesting your profits for exponential growth.
A $10,000 account growing at 10% monthly for 12 months becomes $31,384 with compound growth, compared to $22,000 with simple growth - a $9,384 advantage.
Example: Starting with $10,000 and earning 10% monthly, your account grows to $31,384 in one year. The compound effect becomes more powerful over longer periods, potentially reaching $1.3M in 5 years.
After 12 months
A = P(1 + r)^t + D[((1 + r)^t - 1) / r] Where: - A = Final Amount - P = Principal (Initial Amount) - r = Monthly Growth Rate (as decimal) - t = Time Period (months) - D = Additional Monthly Deposits Example: $10,000 at 10% monthly for 12 months A = $10,000(1 + 0.10)^12 A = $10,000(1.10)^12 A = $10,000(3.1384) A = $31,384
A:Compound growth is the process where your trading profits are reinvested, allowing your account to grow exponentially over time. Each profitable trade increases your capital base for future trades.
A:Simple growth adds the same amount each period, while compound growth multiplies your existing capital by your growth rate. Compound growth accelerates over time, creating exponential returns.
A:Most professional traders aim for 5-15% monthly returns. Higher returns are possible but come with increased risk. Consistency is more important than high returns for compound growth.
A:You can compound daily, weekly, or monthly. Monthly compounding is most common as it allows for consistent performance measurement and reduces transaction costs.
A:Simple interest calculates returns only on the original principal, while compound interest calculates returns on both principal and previously earned interest, leading to exponential growth.
A:Use the formula: A = P(1 + r)^t, where A is final amount, P is principal, r is growth rate (as decimal), and t is time periods. For monthly compounding: A = P(1 + monthly_rate)^months.