Earn with compounding on Binomo

Compounding your money in 1 year

50 weeks. This is the time left after deducting holidays in the trading business from 52 weeks in a year. And this is the time to work the well-proven science of compounding to provide 20% of the weekly return.

Assuming that everything goes according to plan, that your initial balance account is $1,000 and your weekly profit target is 20%, you should gain $200 during 5 working days of the week. The following week, you should have $1,200.

Now, the compounding concept implies adding earned additional money to the capital. This way, in the second week of trading, your goal will be 20% from $1,200 that is $240. If you continue like this for 50 weeks of the year, then you will have a huge profit indeed.

However, keep in mind that there is absolutely no guarantee when trading. Even if you’re the best trader in the world, you’re bound to encounter some losses. Be very careful when trading so that you don’t lose more than you successful.

Compounding strategy and Warren Buffet

Warren Buffet is one of the richest men of our time. If you haven’t heard of him, let me just tell you that his net worth is estimated at $82 billion. But what is even more interesting is how he had come there.

Warren Buffet started investing at the age of 14 with $5,000 capital. During 70 years, his wealth has grown up to $82 billion. You can calculate from these numbers that his annual return was about 25-26%.

Well, this is more than a 20% weekly profit at Binomo that will lead you to a million in one year.

Look at the chart above. 1 million within a year with 20% weekly returns and compounding strategy can work.

What we can learn from Warren Buffet is that even with quite a small return per week when using compounding you can make a fortune over time. Of course, there is no magic wand that will make your millions true. You need to work for this. And avoid losses. This is also the lesson from Warren Buffet.

This won’t be always possible. You will surely experience losses. However, don’t get discouraged. Even with a few steps backward, you are still able to get 20% at the end of the week as long as you study, practice, and execute.

As was said earlier, losses are part of this game. Warren Buffet would say not to lose even one dollar from your funds. But we can put this in these words: never close the week with a balanced account smaller than in the beginning. Don’t stay fixated on that 20%.

Maybe one week you will only make 3%. But another week you might close at 80%. The most important thing is to make additional income at all. And you will see that consistency bears fruit.

Trading versus investing

Warren Buffet’s wealth was made mainly by funds investments. Trading is kind of a different story.

Traditional strategies based on buy and hold are bringing the profit only when the value of the stock grows. Financial derivatives trading, on the other hand, allows you to earn additional income no matter the prices are rising or falling. As a result, your fortune can expand much faster than if you were an investor.

It is vital, that you have a strategy. If you want to get additional income you need to have one and know how to use it. Fortunately, there are plenty of strategies you can choose from. Make sure you pick the one that suits you best.