How we can Generate huge wealth through discipline and consistency..... Please read following...
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Some people think that Albert Einstein’s name is magical. If they want to convince you of something or sell you something they invoke his revered name to prove that a genius agrees with whatever proposition they are peddling. Here is a collection of statements that the brilliant physicist supposedly said:
Compound interest is man’s greatest invention.Did Einstein make any of these ridiculous remarks? Sometimes the wording of the quotations is different. For example, some sayings replace “compound interest” with “compounding interest”, “compounded interest”, or “compounding”. Are they all bogus?
Compound interest is the greatest mathematical discovery of all time.
Compound interest is the eighth wonder of the world.
Compound interest is the most powerful force in the universe.
Compound interest is more complicated than relativity theory.
Albert Einstein called compound interest "the greatest mathematical discovery of all time". We think this is true partly because, unlike the trigonometry or calculus you studied back in high school, compounding can be applied to everyday life.
The wonder of compounding (sometimes called "compound interest") transforms your working money into a state-of-the-art, highly powerful income-generating tool. Compounding is the process of generating earnings on an asset's reinvested earnings. To work, it requires two things: the re-investment of earnings and time. The more time you give your investments, the more you are able to accelerate the income potential of your original investment, which takes the pressure off of you.
To demonstrate, let's look at an example:
When you invest, always keep in mind that compounding amplifies the growth of your working money. Just like investing maximizes your earning potential, compounding maximizes the earning potential of your investments - but remember, because time and reinvesting make compounding work, you must keep your hands off the principal and earned interest.
One of the most memorable quotes of Albert Einstein was that “the most powerful force in the universe is compound interest!” Compound interest is really the catalyst that expands your funds and it’s the mechanism that can turn small savings into huge sums. With a decent return on your investments (6-8%) and patience, compound interest can grow your savings astronomically.
Albert Einstein called compound interest “the greatest mathematical discovery of all time”. We think this is true partly because, unlike the trigonometry or calculus you studied back in high school, compounding can be applied to everyday life.
The wonder of compounding (sometimes called “compound interest”) transforms your working money into a state-of-the-art, highly powerful income-generating tool. Compounding is the process of generating earnings on an asset’s reinvested earnings. To work, it requires two things: the re-investment of earnings and time. The more time you give your investments, the more you are able to accelerate the income potential of your original investment, which takes the pressure off of you.
One may be wondering how the whole concept of compound interest is linked the Forex and commodity market. professional traders understand the power of compound interest and deploy it accordingly, they place more importance on becoming profitable in the long run than doubling their money over a short period of time. statistics have it that most traders focus on doubling their initial investment in a very short period forgetting that Forex is like every other business that takes time grow.
Lets say for instance you invested $1000 and you risk $20 per trade, assuming you make 200pips per week using 0.02lot size ($40) every week, over a period of one year you will come out with roughly 200% of your investment. Again lets say you have $10000 as your initial capital and you risk $200 per trade, going by the same calculation above, you will have a ROI of 200% ie about $20,000 in profit.
Now here is my advice to traders, when you invest for instance $1000, “DO NOT QUIT YOUR JOB” or “SACK YOUR BOSS”. Yea you heard me right , don’t expect to earn a living out of it immediately. Focus on becoming a profitable trader by applying good MONEY MANAGEMENT principle and always remember the power of compound interest.Focus on making a lot of pips not money because when you master the act of making consistent pips year in year out, money has no option than to follow your lead.
POINTS TO NOTE
- learn and stick to one time proven profitable strategy
- Never find yourself in a situation where taking a trade is a do or die affair.
- Concentrate on developing your money management skill
- Place much priority on making a lot of pips
- Finally, master your emotions of greed and fear.
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