Do you think compounding is important?

[winzpc]

@andry777

 

Yup andry, analysis is the main key for us to open a position. With a good and solid analysis about the current chart then it will raise our comfortable to place a trade. I mean that if I have a huge capital then although I open with small lot will give me a big return and satisfied me, but my position is considered with a good analysis first. So for me now that using a small capital always want to open more position to gain more profit and sometime make me can control my emotion that cause me a loss.

[boniez]

important we should have good money management to be a pedestal. but if you're still a beginner stage, then I think is the best choice to withdraw, in addition to preventing the loss of profit because a margin call

[budado]

I really don't get the point in here. Because this section is about forex trading. And I don't or can't relate how compounding get in here. As you can see money management alone in forex trading is already a mile away with the rules of compounding. In forex trading the less exposure less loses.

[wasi90lkv1]

i think compounding is not a bad idea. but it is better to get back your principal first before doing any compounding. if i become a serious forex trader, i may compound a lot.

[yogeshwartyagi]

I am not of the view that we should keep on investing all the profit we get from trading,

because a single losing day may eat of most of our invested capital, so i prefer to withdraw

a major part of profit, and reinvest some portion so that even if we have a losing day we still have our opening capital in full.

[adnan007]

I am not of the view that we should keep on investing all the profit we get from trading,

because a single losing day may eat of most of our invested capital, so i prefer to withdraw

a major part of profit, and reinvest some portion so that even if we have a losing day we still have our opening capital in full.

 

I agree with you @yogesh that we should not keep all our profits but keep withdrawing it from time to time as just one bad day can turn all your profits into losses. The best way is to keep withdrawing the profits every now and then and stick with your initial capital to earn more profits by trading

[budado]

Money management. That's the best way to control your loses. For example if you have ten dollars. Try to trade 1 dollar margin only. If you hit the one dollar then its a stop loss. In this way you only loss 1 dollar and you have 9 dollar more to trade. But my advice is just 50 cents margin if you have 10 dollars. And take profit if you hit 75 cents.

[yogeshwartyagi]

I am against compounding - especially those who go with 100% compoudning though a little of your profit is ok to add to your capital to increase your capital. As if you compound your all profit then on a loss day your entire capital that include profit also will be at risk.

[senger]

Certainly to double your account is one of the good things, but it is not the most important in the matter, but there are a lot of Alammero very important in the Forex market

[omostar]

To me yes I can compound my account especially if my starting capital was small in the first place. However, if I started with an average capital then, I will not compound until I have withdrawn my capital and some profits. After then I can start to compound a percentage of what I have left.

[ethilihop]

Just saying: Two kensai can take a province together too, you know. I think the focus everyone had that "every single unit must take a province on it's own" hampered design as much as anything really.

 

Add to that that having more units is king, really.

[monyitomon]

You can use it when you have a good strategy and skilled trader! It's not advisable for a newbie to compound because the higher the capital the higher the losses will be. But also the higher the capital the higher the profit will be.

[ermaniso2011]

l have a diffrent solition for that.it is better to open an extra account which you can make internal transfer between them without any charges.any time you make some amount out of your account just kindly transfer it to your second account and wait until your second account come to same level.now you have two accounts to trade then you can start to built up a new account with the two accounts.now you have 3 accounts.

[ermaniso2011]

now the next step is to make some rules for your accounts.lets say al the earnings from account one will be saved as reserves in an e-currency,and the income from second account is for building or opening a new account,and the third account is for daily expences.your target should be always not to loose this accounts ,keep them alive.dont take high risk just go conservative way and grow your accounts slowly.step by step.

[flybiz08]

Without compounding, it will be difficult for a trader to make the money that is much talked about in forex trading. This must be done smartly and also the trader must also be withdrawing part of the profits from time to time.

[Tariq777]

No I don't agree, I believe we should keep withdrawing our profits and play with the principal only

[luckyvoy]

Well compounding will increase amount of capital and so we can expect greater profits but by doing this we are risking the profit earned along with capital and so i rarely compound and withdraw profits time to time.

[freaky]

Compounding is not that really important, it all depends on how the trader wants to get his returns. If a trader really want a greater profit then i think compounding will be very important in that case.

[riddick09]

For me, in my plan is not to have compounding but I don't see its good for beginners. I only take the profits every time I have it so I can made another good and fresh start to make another profit with the same set up we had so it will be more familiarize and easy to do it again. Its like sticking to our trading strategy to have the same initial deposit.

[Tariq777]

I guess you should withdraw your profits every time u make them, don't compound. It's dangerous

[indieover]

For me it's not that important to do compounding so that i would be able to get my profit right away. So I will like to make sure that I would not increase my capital not unless I am much better trader. Only that I would try to compound and also I also want to recover what i have invested so that i would not lose money in case my capital hits MC already.

[budado]

Its really good if we can cashout half of our earnings and same time add back half of our earnings. In this way we can increase our capital and same time enjoy the fruit of our labor by getting back some of our money. I know its hard to trade in forex that's why its important that we also put incentive to our hard work by getting 50% of the profit we make.

[fari]

Compounding system is good strategy but it's risky too because if we made mistake, we could lose higher amount of bucks.

But if we could make good analysis, our profit will be higher too. So it's depending on us when we must use this compounding

strategy.

i agree with your point, that it is a good strategy but can prove to be risky. nothing here is risk free. to make big you have to take the risk and win from it.

[standart]

if traders plan to make order with higher lot, compounding is necessary. but if already satisfied with the current lot order and not plan to add it, then compounding is not necessary. I prefer to compound the profit I get because I want to make my deposit money increased and plan to make order with higher lot.

[budado]

I just realize my mistake right now. I just too blinding with the previous strong bullish trend of eur/usd that I open lots of buy position but now its loses about 300 pips already. Compounding is really have two side. Its good to compound to increase your earnings chance and your profit as well. But the bad thing is that if you double your lot size hoping that you can increase your earning and you get MC you loss big.