Most Traders Never Understand Trade-Level Compounding (and Certainly Don’t Use It)
This is aggressive trading.
This is putting it on the line.
This is compounding at the trade level… something very few traders understand, much less attempt.
But here’s why I believe it’s worth it:
“Some of the world’s greatest feats were accomplished by people not smart enough to know they were impossible.”
– Doug Larson
Plenty O’ people will tell you it’s a “pipe dream” or a bad idea to try to make $99,000 over 300 trades (which is exactly what I’m going to try to do, as you’ll see in a minute…)
I think the naysayers are wrong.
Admittedly, I would never trade my only trading stake this way.
It makes sense to break off a little risk capital to trade hyper-aggressively.
The majority of my trading capital grows via “normal compounding” (the slow way)… it only makes sense to do this with a small sub-account.
Because Risk/Reward is the name of the trading game.
Growing an account quickly will ALWAYS have drawbacks.
It is possible to pump up the equity peaks (the lovely parts of your equity curve) without plunging too deep into terrible equity lows…