Before you start dreaming about any potential gains, it's important to remember that, on average, more than 80% of traders lose their money.

Furthermore, you should understand a popular mistake that most beginners make.

Many beginner traders try to get rich from one grand trade or a few lucky trades.

But that's not how trading works. And that's one of the reasons why the majority of beginner traders lose their money.

A more realistic daily gain goal is around 1% of your account size.

So, if you put $1,000 in your account, you could aim to gain around $10 per day. 

If you have a $10,000 account, then you could try to aim for a profit of $100 per day.

... and so on.

Remember that these are realistic numbers only for traders who know what they're doing.

Also, remember that if you make multiple trades per day, a big part of your profits might get eaten by the spread commissions.

Thus it's very important to choose a broker with low spreads. According to the latest comparisons, one of the regulated brokers with the lowest spreads is This Broker Platform. They offer up to 20% lower spreads on EUR/USD vs other top brokers like Forex.com, or TD Ameritrade.

Hmm.... $10 profit per day with a $1,000 investment?

You might be thinking that it's not much.

Actually, it's a LOT if you understand the power of COMPOUND INTEREST.

The secret formula to trading success

If there is a secret formula to trading (besides learning and practicing hard), it's this: 

SUCCESS = COMPOUND INTEREST + DISCIPLINE.

1% daily earnings might sound small at first, but it adds up over time if you keep compounding the profits and growing your account.

For example, let's imagine that you deposit $1,000 in your account.

As you can see in the visualization below, 1% daily compound interest from $1,000 would result in total earnings of $12,290.99 in one year.

Of course, this is just to illustrate the idea of compound interest. You would have to trade consistently every working day to achieve such a result, which is not very realistic for most people.

But you can always increase your account size if you're doing good and also go full-time into trading, so it's not impossible to reach and even beat this hypothetical target.

Theoretically, if you'd start with $30k, then the 1% daily compound interest could result in total earnings of more than $368k in a year. However, if you are expecting much bigger and faster gains, you will put too much in a single trade and most likely quickly blow your account. 

Even if you traded every day, aiming for 1% daily will never go smoothly, of course. You’ll have +3% days and -2% days, etc. 

But! This approach provides a more structured and sustainable perspective to trading.

It also gives you a target to strive for.

  • "Compound interest is the eighth wonder of the world. He who understands it - earns it.

    He who doesn't - pays it."

    Albert Einstein

Intermediate traders often make bigger gains at the beginning of a trading session when the markets are more active and then lose a big part or all their profits later in the day due to lower trading volume or overtrading.

Best traders try to hit their daily goal and then shut down their computers and go outside to clear their minds and reset for the next day.

#HotTrends $BTC #ETH $ETH #CryptoEducation💡🚀
#Write2Erarn #NigeriaCrypto