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
Monday, March 5, 2012
The One Percent Crumb
Posted by Unknown at 6:41 PM