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Do you think compounding is important?


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You nailed it, it is all about knowledge and don't forget our confidence to the market. Many traders that i talked with said to me that they keep holding their profit into their capital because they want expanding to the market because they see that is possible to do and has confidence for it. Compounding basically re investment, if you do it right then profit will come for you.

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I am still practicing this but it must be 50% from my weekly profit or at least from my latest two profitable trading. Compounding for someone who are still buil their capital so they can earn bigger is important but maybe for someone who comfort with their earning can withdraw as much as they want.

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I am still practicing this but it must be 50% from my weekly profit or at least from my latest two profitable trading. Compounding for someone who are still buil their capital so they can earn bigger is important but maybe for someone who comfort with their earning can withdraw as much as they want.

Yes, we can trade with bigger capital by compounding our profit in our trading account. But we need to know that if we have bigger capital in our account, we need to keep discipline when trading.

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That is what make compounding the most feasible way for newbie to increase their capital, also according to me there's no the other way for trader to do something like that beside they make a deposit from their own pocket, but for someone who does not want to do that compounding is the only way.

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That is what make compounding the most feasible way for newbie to increase their capital, also according to me there's no the other way for trader to do something like that beside they make a deposit from their own pocket, but for someone who does not want to do that compounding is the only way.

And this is why i really love this way first because compounding is really important for me. At the moment i continously compound my capital to certain extent my target is must be at least $500 for now, as long as i can divide what i should withdraw and compound i think i will reach that before this year end. And this is so much helpful for someone who does not have much money.

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  • 4 months later...

As long as you want to pursue bigger capital then it is very important and not just important, because as you gain more capital it means you purchasing power is bigger that before and with that a trader able to afford bigger lot size. Moreover, if your performance is stable enough you will earn double.

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I agree with you in order to pursue for bigger capital which means bigger possibiity for obtain bigger profit. No matter what compounding must be do in a better frame, you must know how much money you want to compound and what do you expect behind or after that compounding. Also after compounding it is better to increase your target earning.

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Too much ambitious for example. Compounding for sure is important, one thing that you should note that compounding will increase your capital while throw away your chance of grabbing your own profit and use it for your own aside from compounding for sure. To conclude that all i can say compounding importance is up to a trader's condition.

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To me unless you have big capital or you are satisfy enough with your capital then compounding will be always important and also one of the most easy and comfy way for trader to invest their total profit, it could just happen in few seconds. Compounding also use by many new traders to obtain bigger capital amount.

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  • 2 weeks later...

Compounding doesn't always come with good thing as i said before compounding will make us more ambitious with forget to withdraw our own money that we get from our hardwork as forex trader. But i think novice trader should think first whether they must compound or simply withdraw the funds.

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Buddy, that is depend on traders. Once again, it is all depend on traders also you cannot generalize all people are the same. True it doesn't always come with good thing but it doesn't make you some sort of ambitious all of sudden. You want to expand for sure, right? The most efficient way to do it of course by compounding.

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Everything you said are important, however during our early phase as forex trader we only have small amount of capital and thanks to compound we can invest directly our own profit which means we don't have to spend only our time not our own money from the pocket.

 The point is we have to earn that profit first. Its a very difficult thing which requires patience, experience and good amount of investments..Glad I got 100% bonus from Hotforex and now has more chance to make profit faster.

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It's important but the more important is we should be discipline when trading. Sometimes, trader who have big capital cant control their emotion, greed so they trade with big lot size. For myself, i dont wanna be ambitious to get big profit, the consistent profit is better.

I doubt about that, because trader who have big capital mostly able to think clearly, they trade based on experience and not just by using or like so called controlling emotions. Soros is one of the most popular example for someone who trade in foreign exchange and has big capital.

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  • 1 month later...

Yeah if we want to be really good in Forex and make this as long term business then compounding is the key requirement and almost necessary, but if we are not good in compounding then we are most likely to struggle at least to make higher profits. I won’t say to compound 100%, as that is something not sensible. I recommend compounding somewhere between 35-40% and rest we can keep, as compounding is connected directly to control of emotions, if we have control then higher compounding is okay, I get great benefits with 50% bonus by my broker OctaFX, as this is trade able which makes it extra-special and it is so much fun to trade with extra capital that we don’t have to fear about losing at all.

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coumpunding is depend on traders, when they are thinking that they need to compound their profit, they can withdraw it half. however, if they are consider to increase the capital, usually they are let the profits keep in trading account to enabling them to use higher margin per trades. or when trader use high capital already, probably they will withdraw all the profit. 

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  • 2 weeks later...

In early part of our career, it will be a mistake to do compounding especially if we are aggressive or only prefer scalping, but once we get use to things and mostly do long term trading then compounding becomes very important, but again this has to be done through right broker or else it will be really mess. I am lucky enough with OctaFX broker since they are well trusted and making investment with them is ever great due to their 50% bonus on deposit offer, so even compounding with them is ever so much beneficial while we can easily make withdrawal whenever we wish to due to their instant service where all money transactions are proceed instantly no matter what amount.

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I defenitely agree with your statement. It is not a must and let me add few phrase, compounding is not a must, but it could be important and fully optional also depend on your condition in this case your capital. If you want profit but you don't have much capital to expand, then by compounding you have chance to grab bigger lot and increase your profit.

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It is important to certain extent, but as long as you have big capital i think you shouldn't worry about compounding, some people doesn't even think about it because with their capital they already earned big, they much more focusing to get ROI as fast as they can, while there are some who don't have much capital and want to earn big, do this thing because it is more effective yet efficient.

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Compounding is one of the most common mistakes made by an options trader when they are making long-term investments. It consists of putting profits back in to the investment, so that the profits can earn profit too. This is great strategy if you are a stock trader; many people have made their fortunes through re-investing profits, but for an options trader, it is extremely risky. If you compound your profits you will also be compounding your losses, and you may end up with nothing as you are dealing in leveraged stock options.

 

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