Understanding Compound Trading… #TradingSignals #tradingtechnique #TraderAlert

To illustrate, consider a trader starting with $1,000 and achieving a 5% return each month. Instead of withdrawing the $50 profit, the trader reinvests it, increasing the capital to $1,050. The next month, a 5% return on $1,050 yields $52.50, and so on. Over time, the capital grows at an accelerating rate, thanks to the reinvestment of returns.