budado Posted September 27, 2014 Posted September 27, 2014 Compounding is good if you know how to do analysis. But in the long run you need to settle down. I do compounding but not progressively. I do make sure that I do earn then set more trade before I going to add another lot size. I make sure that my lot size can handle the volatility and not going to get MC. Because if I will get MC then what the point of doing compounding? Quote
luckyvoy Posted September 27, 2014 Posted September 27, 2014 Compounding is good if you know how to do analysis. But in the long run you need to settle down. I do compounding but not progressively. I do make sure that I do earn then set more trade before I going to add another lot size. I make sure that my lot size can handle the volatility and not going to get MC. Because if I will get MC then what the point of doing compounding? Hmm, in such case gettinng mc and blowing our account we shall lose the profits made along with the base capital investment. Fx trading is very risky job - and any money that is invested faces risk - the only way to protect our profits by withdrawing them and not compounding actually. Quote
skyrock Posted October 2, 2014 Posted October 2, 2014 Yes that is what I also think compounding is really the best in the forex market if you do compouding your trading equity and margine will always keep on increase thus making you make good knowledge and earning Quote
Andy Posted October 4, 2014 Posted October 4, 2014 Compounding is definitely very important as when we start we don't have too much funds so we won't be able to make big income consistently if the investment is not decent and that can only happen if we compound the profits instead of taking them out but here is also a problem than if the broker is not good our money will get trap so in that case it is never to take out. I like OctaFX because they have the cleanest and visible system where we know and understand their policy is so we never have to worry about investment as there we can compound and even with actual investment we get 50% bonus so that already makes it so large which helps us make regular profits. Quote
rexway Posted October 5, 2014 Posted October 5, 2014 Compounding is very good when its come to the forex market because when you do compounding you are multiplying your profit and increase your equity as well in the forex market which is really the best Quote
skyrock Posted October 8, 2014 Posted October 8, 2014 Compounding is very good and I can say its the best way to do our trade and also we must focus on this since its going to help increase our equity balance Quote
budado Posted October 9, 2014 Posted October 9, 2014 Compounding is very good when its come to the forex market because when you do compounding you are multiplying your profit and increase your equity as well in the forex market which is really the best You only looking at one side. What if you end up losing? You also going to loss big. Not only you going to loss all of your profit but your trading capital as well. That's why its not advisable to do compounding if you really don't know how to trade properly. I can surely become a big time trader right now if I do compounding or I can also end up bankrupt. Quote
rexway Posted October 14, 2014 Posted October 14, 2014 Compounding is good but before the trader want to do compouding he must go with good money managment and risk control system which is the only ways to help the trader survive the risk Quote
myregister Posted October 14, 2014 Posted October 14, 2014 Compounding resulted to bigger capital that we have, so the more capital we have the more chance we got to make profit. Compounding is important if you can trade with it better, but if not i advise to withdraw your own profit only, rather than risking your profit to loss. Quote
budado Posted October 14, 2014 Posted October 14, 2014 I always don't recommend compounding even if you are earning good money. Because theirs no point making ten consecutive profit and and end up getting stop out or loss your profit in just one losing trade. Compounding can increase your profit but its also can increase your loses. That's why I don't recommend it. Just try to build your trading account steady. Quote
Bilal Jafar Posted October 20, 2014 Posted October 20, 2014 I prefer withdrawing my profits on weekly basis.. at least minimizes the chances of losing away both the capital& hardly earned profits. Compounding is for those who can take higher level of risks. Quote
myregister Posted October 20, 2014 Posted October 20, 2014 Yes regular withdrawal will helps trader to maintain the risk well rather than doing compound. Compounding ocassionally is fine and you must have many consideration first before trying to compound because you also must think about the risk aside from making profit like loss. Quote
Milo Beck Posted November 22, 2014 Posted November 22, 2014 It depends completely on the situation, as for an expert and settle trader, it is obvious that he will compound, but a newbie will always be excited by profits and prefer to withdraw it and also having a broker that is trustworthy makes the difference in the decision of compounding or not. I always feel secured with compounding because I trade with OctaFX and it is a company that fully supports every decision we make. In fact they have great 50% bonus for us on all investments, so having money with them is like having it in bank account. Quote
myregister Posted November 24, 2014 Posted November 24, 2014 @milo beck: Despite of the fact that many people will prefer to withdraw their profit because they are getting excited, compounding still important for traders, with that they can make more earning, only if they already have enough money before. Quote
standart Posted January 9, 2015 Posted January 9, 2015 according to our necessities. when we are has small capital, and want it to raise high, in order to lead us to trade with big margin size, we will compound the profit, or even let it to left on account. while if we are trade with big capital, has tendency that we will withdraw all the profit. Quote
mcliffi Posted January 9, 2015 Posted January 9, 2015 I think compounding will be good for experinced traders and not newbies.This is because this is a trade that can go either way.You can gain lots of profits or lose.For experienced trader,they can go ahead and make trades with this.For me i do not like compounding.If you feel you are a forex guru,then compounding will be your choice. Quote
surya77 Posted January 9, 2015 Posted January 9, 2015 for withdraw profit from forex trading we must trade until profit in big volume nefore, so you can take decission for withdraw you money and then you can enjoy with it. Quote
myregister Posted January 13, 2015 Posted January 13, 2015 Important or not depends on the trader's own, I also think at a particular stage compounding can serve as a starting point to increase the amount of equity you have. So far I still do compounding, but I did it once i already reached total BEP by 75%. Quote
Jacob McGivens Posted January 13, 2015 Posted January 13, 2015 I think compounding will be good for experinced traders and not newbies.This is because this is a trade that can go either way.You can gain lots of profits or lose.For experienced trader,they can go ahead and make trades with this.For me i do not like compounding.If you feel you are a forex guru,then compounding will be your choice. I agree with your point sometimes newbies get over excited or make a mistake where they stay with it for too long, hence it also give risk to already made profit so my way is to simply have a part of profits out while continue with what I have left. I can easily do this even right on trading without having to wait due to OctaFX broker’s instant payment system and you know they have their own analysis expert service so you can use it like our guru as I have done and get amazing results. Quote
myregister Posted January 17, 2015 Posted January 17, 2015 It gives you the risk but i think you should take it especially if your strategy mostly will work. Compounding is also one of the way to increase your total equity which mean that you also increase the chance of using higher lot size that could bring you to get more profit later. Quote
Dion Ebrahim Posted April 24, 2015 Posted April 24, 2015 It depends on which way we are looking at trading as since if we take it as a full time source of income then we must invest more and compounding is the right way, but if it’s just part time work then it’s not needed to do compounding. I want to take it as lifetime work and thanks to OctaFX broker, I am able to enjoy doing compounding since I get massive 50% bonus with them and so no matter how much I invest, I always want to go on to do more. Quote
myregister Posted May 5, 2015 Posted May 5, 2015 Investing our own money means that we think that reinvest or compounding is really worthed thing to do. Many traders and not just me who do it, compounding is really important especially for those who does not have much money to make next investment. Quote
pepy Posted May 13, 2015 Posted May 13, 2015 Very very important, well maybe this may sound too much for you but compounding can help a trader to remain trading without having to reduce the funds you have. You don't have to spend your own money just use your profit to increase your total capital. Quote
myregister Posted June 15, 2015 Posted June 15, 2015 @myregister: That is not very important it is all depend on the condition, afterall it is worthed as long as the condition allows you to do that. Not only increasing your purchasing power because of more capital, but you can get bigger power to hold position longer. Quote
Decub Posted June 16, 2015 Posted June 16, 2015 If you have the knowledge to make that a reality, then it's good to compound and when that knowledge is lacking, then it's better for you to withdraw your profits before you lose everything. Compounding favours those who have some adequate knowledge to also withstand it because you can't compound when you are lacking in knowledge and find it difficult to understand what forex even offers. Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.