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Do you think compounding is important?


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important to traders have risk management plan and its guidance to them to not make double lot per order as long as the minimum deposit still not reach the double risk management plan. although make 50% compounding, suggested to not directly increase the lot per order if risk management plan not said that.

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Strategy is what is important and not compounding. And also. Theirs no such thing as compounding in forex. If you going to use your profit as additional capital that is not compounding. Compounding only happen when theirs a fix income to compute with. But in forex the income is not fix and in fact you can end up losing money. In compounding you don't loss money its only compound.

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indeed with compounding we can generate greater profits in our trade, especially if we add capital to trade we will but we should also be able to measure the risk of our trade with the exact calculation as it's useless if we have a large capital but does not have a system trade and precise calculations that would only harm our trade

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Its a good multiplier both ways. Meaning you can increase your chance of losing lots of money and can increase your chance of earning lots of money also. I really enjoy trading in forex right now but one thing I don't do is compounding. this is not worth it at all. Its like giving forex a chance to get all your money. In forex trading the most important thing we need to do is to save our capital not expose it to more loses.

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actually everyone do that and extra income withdraw. compounding is so much important like as stop loss and take profit. just see that when your invest is in a margin level then that will be so much risky for you. i think that time using of compounding is must and many times we see that we can take advantage but have no money, in that time compounding is so important. with compounding your income you can get huge profit on the other hand on the other hand if you don't get profit similar that we will loose a huge money. so all time serious about that. it is so important to conscious every-time while trading.

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if we do trade without additional capital that we get to eat the results will not be increased and also we will not be able to improve the quality of our trading because we know that forex is very profitable if you have a large capital to trade as well as the compounding benefits we could make us a stronger trade

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  • 2 months later...

No I don't agree, I believe we should keep withdrawing our profits and play with the principal only

This is true. We have to keep withdrawing our profit until we reach the BEP here. If we reach the BEP here then the most we can do the compounding is like 50:50. 50% of the next profit we still have to withdraw it, and then we can enjoy the profit here. We can play it safely here

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Before you ask if compounding is important you need to ask yourself if you know how to trade in the first place. Because if you don't know how to trade then I guess theirs no way you can actually make some trade in here doing some compounding as you can double and even triple the risk that you are taking if you going to do some compounding.

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One thing we have to know here, if investor does not be wise with compounding system, it can make big loss for the investor. Because if we want to realize here, compounding is another thing of greediness. People want to make the money double more and more faster.

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  • 2 weeks later...

As I know here on the Forex business, and forex trading platform here, we can not find any compounding feature on the trading platform here. So, in this way here, we can only do compounding manually as I know here. We have to control and to decide the amount by our own selves here. This is how it works

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but that is only for some traders, for new traders i think they will prefer to get what they already have here, but that is not all. as for me i still keep compounding for my earning even not 100% but i think that is already enough 50% until 90% compounding for me already good enough for long term trading that i really want to do in this year

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Compounding is important, because it can make our balance trading is bigger and we can get comfortable trading. But we also have to withdraw profit which we have get, so we can get double advantages.. I also do it with my insta account...

Well, here we can see compounding is very tempting to make our money bigger and bigger. But, we can not forget here, we have to make sure our principal fund is safe first here. After that we can be happy and doing the compounding
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Compound is good, but essentially good for traders who have mastered the art and have gained sufficient experience and knowledge. But when it comes to newbies, this is not the need of the hour. The need is to consolidate on trade at hand, and gain experience.

well for me that is depend on the trader, i see some newbie who really want to trade also do compound, when i ask him (via YM), he said that he do that thing so he can do more trade and will try to trade with big amount of money. so i think that is okay too as long as he know what he do, and not all newbie cannot trade big money :D

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I think its better that we rely on something that is more stable and that is doing some analysis. Compounding is actually not a terminology in forex trading. Its just some posters and blogs who use that word compounding simply because they think when they earn money and use that profit to trade again its called compounding. But that's is not a case. compounding happens when you earn interest and add that interest to earn more interest. In forex trading if you add your profit you can end up losing your profit and even your capital if you get MC.

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  • 2 weeks later...

Open as many accounts as you can and just reinvest what ever profit you have in other account. Don't invest and reinvest your profit in the same account as you can get MC all of your earnings wil be loss also. But if you have multiple accounts at least you can earn in one account even if you get MC in other account. And for me this is the best way to make money in forex.

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