The power of compounding – the snowball effect that happens when your profits generate even more profits. Let’s say you begin with an initial $10,000 investment that earns 6% profit each trade. After 80 trades, your investment will have grown to over one million dollars:
$10,000(1 + 6%)80 = $1,057,960 
Compound growth is exponential growth which is much more than arithmetic growth: $10,000(1 + 6% x 80)= $58,000

Compound Earning Calculator:

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You make profits not only on your original investments but also on reinvestment of gains that accumulate — so your money can grow faster and faster as time rolls on. The power of compounding shows how repeated, and consistent small profits can grow to significant gains.

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