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Over the 64 trades in the model portfolio – 71.88% were profitable.

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Jeff Williams Profit Prism System | The Power of Compounding

When I was in school, I was always told to buy and hold… it’s the classic long term investment strategy…

Warren Buffett is one of the wealthiest men in the world and the billionaire all billionaire’s aspire to be.

No question about it, Mr. Buffett knows how to invest in stocks, the man will go down in history as a legend.

Buy and hold is great if you have decades to sit on a stock…but what about us? We don’t have decades to wait—we need results now.

So what exactly we can learn from the Oracle of Omaha if we’re trading a small account?

The power of compounding returns.

I’m stealing a page out of Warren’s playbook to school you on how to take a small account and turn it into a substantial grubstake by using the forces of compound returns.

The Power of Compounding

When it comes to calculating interest, there are two basic choices: simple and compound.

Simple interest is calculated as a set percentage of the original principal every year.

The way I like to describe compound interest is “interest on interest.”

This creates a powerful effect on wealth creation… and the reason many investors are so successful.

When you are able to  make “interest on interest,” capital will grow at a faster rate than simple interest, which is calculated only on the principal amount.

How does it work?

… you continue to reinvest your returns, as opposed to taking them out…

Let’s say you invest $10,000 at a 10% simple interest. At the end of the year, your investment capital is now $1,000 higher ($11,000)…

If you take the $1,000 out, or don’t reinvest it… then you make 10% the next year, you make another $1,000… continuing on this way, you are building your wealth by $1,000 per year…

$10K isn’t going to take you far by following this method.

Now let’s say you are compounding those returns instead…

The first year will actually be the same… 10% return on $10,000… you now have $11,000.

Now here’s the difference… instead of taking the $1,000 out of your account, you continue to invest it along with your original $10,000…

In year 2, you now make 10% return on the original $10,000 and the $1,000 as well (interest on interest)… so instead of a $1,000 increase, you now have an $1,100 increase…

Doesn’t sound like much does it?

This is where it gets good…

Over time by continuing to reinvest and compounding those returns… the capital begins to increase exponentially.

Just take a look at how simple and compound interest compare over a 50-year period:

The blue line shows where you would be by compounding your returns on $10,000 over 50 years and the red line shows the capital you end up with when simply making a 10% return every year on the original $10k only…

You may be surprised at how quickly this can add up. At 10% simple interest, your $10,000 investment would be worth $60,000 after 50 years…

However, here’s where the incredible effects of compounding comes into play… by compounding your returns, your capital would balloon to more than $1,000,000 in the same 50 years…

Just look at Warren Buffett… over the past 50 plus years, a $10,000 investment in a low-cost S&P 500 index fund would have grown to over $1.2 million…

But with the superior stock-picking of Warren Buffett along with the compounding effect… the same $10,000 investment would be worth around $200 million… WOW!

That’s the power of sustained outperformance while compounding returns along the way, and is the primary reason Warren Buffett is one of the world’s richest people today.

If that doesn’t convince you… stop reading… but if you want to amass true wealth, let’s get into it…

You don’t have to start with a lot of money… and you don’t need a time machine to go back to begin at a younger age…

You can stack gains and compound on the daily by trading penny stocks…

Should you have long term investments?… absolutely… I sure do…

But if you are late to the game, or want a great kick start… this is what I do…

I developed a system that lets me capture great returns every day and week… and then stack my gains by compounding those returns each week.

In fact I have created a small account challenge to prove it…

I start with $3,000 and from there I let my returns compound by keeping them in the account and continuing to make gains on gains… over and over…

My most recent account challenge was started in mid June and in that 3 short months is now at nearly $20k….

How?

Well I use the power of compounding my returns…

Starting with $3k, I make trades using my simple and consistent system… every time I bank a gain, I leave it in the account and now I am trading with more money and compounding those returns…

If you want to learn how to compound returns and grow capital quickly then join me in my trading room,  start with a small amount and I’ll work with you to stack it up.

JOIN NOW

Source: PennyPro.com | Original Link

Author John GladstonPosted on September 30, 2019Categories Jeff Williams ReviewTags Boost System, Boost System Review, Boost System Reviews, Boost System Scam, Davis Martin, Davis Martin Review, Davis Martin The Traders Council, Jeff Williams, Jeff Williams Boost System, Jeff Williams Boost System Complaints, Jeff Williams Boost System Fraud, Jeff Williams Boost System Past Performance, Jeff Williams Boost System Price, Jeff Williams Boost System Refund, Jeff Williams Boost System Results, Jeff Williams Boost System Review, Jeff Williams Boost System Reviews, Jeff Williams Boost System Scam, Jeff Williams Penny Stock, Jeff Williams Profit Prism, Jeff Williams Profit Prism Review, Jeff Williams Profit Prism Scam, Jeff Williams Profit Prism Webinar, Jeff Williams Review, Jeff Williams Supernova Boost, Jeff Williams Supernova Boost Review, Jeff Williams Supernova Boost Reviews, Jeff Williams Supernova Boost Scam, Jeff Williams Supernova System, Jeff Williams Supernova System Complaints, Jeff Williams Supernova System Fraud, Jeff Williams Supernova System Past Performance, Jeff Williams Supernova System Price, Jeff Williams Supernova System Refund, Jeff Williams Supernova System Results, Jeff Williams Supernova System Review, Jeff Williams Supernova System Reviews, Jeff Williams Supernova System Scam, Jeff Williams Traders Council, Jeff Williams Traders Council Review, Penny Pro, Penny Pro Complaints, Penny Pro Discount, Penny Pro Fraud, Penny Pro Login, Penny Pro Price, Penny Pro Refund, Penny Pro Results, Penny Pro Review, Penny Pro Reviews, Penny Pro Scam, Penny Pro Trade, Penny Pro Website, Penny Stock Millionaire, Penny Stock Millionaire Review, Penny Stock Millionaire Reviews, Penny Stock Millionaire Scam, Profit Prism, Profit Prism Complaints, Profit Prism Fraud, Profit Prism Login, Profit Prism Performance, Profit Prism Program, Profit Prism RagingBull, Profit Prism Real User Review, Profit Prism Refund, Profit Prism Results, Profit Prism Review, Profit Prism Reviews, Profit Prism Scam, Profit Prism Strategy, Profit Prism Website, Supernova Boost, Supernova Boost Review, Supernova Boost Reviews, Supernova Boost Scam, Supernova System, Supernova System Review, Supernova System Reviews, Supernova System Scam, Supernova Trades, The Traders Council, The Traders Council Login, The Traders Council RagingBull, The Traders Council RagingBull Review, The Traders Council RagingBull Scam, The Traders Council Review, The Traders Council Reviews, The Traders Council Scam, The Traders Council User Experience, Traders Council, Traders Council Review, Traders Council Reviews, Traders Council Scam

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