The Power of Compounding

Many traders take unnecessary risks to make a killing. And they usually end up getting killed.

If these same traders would simply throw a little patience into the equation, they might be shocked at the returns that are possible over time. And with lower risk.

Take a theoretical $10,000 account. Here's the power of compounding over different time periods and with different monthly returns on the $10,000, excluding taxes and commissions:

2 Years 4 Years 6 Years 8 Years 10 Years
2% $16,084 $25,870 $41,611 $66,929 $107,651
4% $25,633 $65,705 $168,422 $431,718 $1,106,625
6% $40,489 $163,938 $663,777 $2,687,590 $10,881,877
8% $63,411 $402,105 $2,549,825 $16,168,901 $102,529,929
10% $98,172 $970,172 $9,555,938 $94,123,436 $927,090,688

This is not an offer to sell or buy securities nor is it investment advice. It's simply the mathematics of compounding.