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How Compound Interest Can Work for Traders

investing tips

If you have been trading stocks, forex or other financial instruments for some time and you are not yet using the power of compound interest, you are losing a lot. Compound interest is interest earned on accumulated capital and previously earned interest put together. Compound interest was described by Einstein as the 8th wonder of the world. Compound interest is what has enabled some people to turn small amounts of money into thousands and even millions of dollars. Believe it or not, compound interest has also made banks and credit card companies rich, even as it makes those on the wrong side of the coin broke and in debt. Compound interest is therefore a double edged sword, but you can put it to work for your money today. There are many retail traders who are complaining of losing money trading. A careful review of their trading activity will show that they do not understand the power of compound interest, and so they use maximum risk in a bid to achieve maximum returns. With compound interest, you can use minimum risk and attain maximum returns. The difference between the start and end points is time, consistency and discipline. So how can ...

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