Legal Disclaimer

All opinions expressed on this site are those of the author and may contain errors (I make mistakes) or omissions (I am not telling the whole truth).

!Thank You!

Monday, March 5, 2012

The One Percent Crumb

I want to debunk the myth that making 1% is just crumbs.
It's not crumb if you are able to compound the investment.

I took a random distribution of 3 values 0,1,2.
If there resulting value is 0, then the trade is a 0.5% loss; otherwise, the trade is a 1% win. No one wins 100% of the time,right?

If a trade is a win 2 out of 3, then the percentage should be 67% win. However, in a random distribution that may not always be the case. In the example I have provided, the win is 72.33%,

This means that if you start an account with $10,000 you would end up with $57,154.95 after completing 300 trades. That's a 500% plus ROI.

Hence, making 1% profit is not crumbs if one can consistently do it.

Here is the link to data