If I told you that with just 1 dollar it is completely possible to reach 1,000,000, what would you say? Since we are in the crypto market, I am sure you would say it is possible. Now, what if I told you that you don't need to find a currency that cuts the long-awaited six zeros? It seems more difficult now, right?
It's really just a matter of consistency. I want to demonstrate here how small profits every day are extremely powerful.
Let's get to the point. In this hypothetical situation, we'll work with someone who opens and closes trades within a period of one day every day, without any breaks or rest. This trader is not an excellent analyst, but he has a good view of support and resistance and can see when the probability of winning is greater than losing. His focus is to make a 1% profit trade on all his assets every day until he reaches 1 million (every day some currency on the market varies 1% or more, so we're working with a completely possible scenario).
Our trader always uses his profit to trade the following day; that is, if on the first day he made a profit of 1% on 1 dollar, he will use 1.01 dollar the following day. So, how long do you think it will take for him to double his equity?
Using the compound interest formula, our trader will reach $2.01 in exactly 70 days (or 70 trades, but let's assume he makes one trade per day and continues to the next day). Doesn't seem very impressive, right? But think about how much you have. If you knew you could double that amount in 70 days, what would you say? I'm sure you'd love that scenario.
Let's get to the point of this article. How many days, with exactly 1 dollar, using the 1% profits each day after the first, would it take to reach 1,000,000 dollars? The time needed would be exactly 1389 days; approximately 3.8 years. It may seem like a long time, but remember, you started with just 1 dollar. To put it in perspective, let's assume you bought 1 $BTC
between 2010 and 2011 at the exact moment when it was worth 1 dollar. Today, approximately 14 years later, it is worth around 94,000 dollars. It took longer, and it has appreciated much less than the equity of our fictitious trader (although, of course, it did not require any effort to reach this level).
In our hypothetical case, the trader worked with a single 1% trade every day, which is why it took 1,389 days. But have you ever imagined how many chances there are of making 1% every day? What if it were possible to make more than one trade a day? If it were possible to make 1,389 1% trades in a row (in any time interval), that would be the number that would make you a millionaire with just a single dollar.
Of course, it sounds easy written here, but in practice it is much more complicated. My goal was simply to demonstrate the power of small profits every day.
In any case, I wish everyone great operations and let's play!