How long until you're a millionaire?
The vendor of Trend Plays #1 brought to my attention the existence of a handy free calculator to calculate the final equity with compounded returns:
calculator
I like these tools a lot, as they nicely demonstrate the incredible power of compounding. For example, an annual return as low (or high, whatever you prefer to call it) as 30% will turn $100K into $10MM within just 16 years.
If you want to get rich and have time, all you need is a steady annual return around 20-40%.
2 comments:
ST:I didn't know you philosophize with the like of Pals...
Anyway, "trading" is a losing cause. For one it (method) has to stand the test of time (i.e. >4yrs). For two, no one is going to get rich quick - if they try...likely to get burned and forever ruin this chance. Longtstock and Diversified are reasonable to expect the highest posssible average return over time. Juice this with some high fliers (and some timing luck) and in less than 10 years multi-millions can be achieved with about 1/10 your net worth at risk.Ga
ST: I must add that I am only going off the view of the equity curve for Longstoch-ST. Of course this system started at a extremely optimal time - to now. Seemed to be more affected by trade selections just prior to Mar downturn - as opposed to the market correction (which didn't phase the fund much). How will future correction bode? No telling. When I looked at actual trades, it seems some stop-loss method is used but on some trades was loose. You might impose your own (tighter) stops, for added protection.Ga
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