One way to become rich?
March 31, 2010 by admin
Filed under Fx Forex Trading Tips
Some people say there is no formula to become rich. Well, de facto there is such a formula. It’s called “geometric progression”. Take for example the order of numbers: 2,4,8,16- what is obvious when looking at them? Well, its seen that evey number is multiplyed by a fixed ratio: 2×2=4; 4×2=8; 8×2=16. The common ratio is 2.
So, lets try to bring this simple formula into reality and business.
Assuming you have only 1000$ to start investing in stocks or forex. Then you choose to trade on a low margin and trade everyday (this things arent that important in the case)
So, you want with your 1000$ to gain 20% every month and then reinvest the total gain for the second month.
So, you will be surprised what is the result:
1st month (end): 1000$ invested – 1200$ gain
2nd month: 1200 invested – 1240 gain
3rd month: 1240 invested – 1448 gain
(6th month: 2500)
Each year you will have:
1 year: 7500
2 year: 66 00
3rd year and 5 month: over one million dollars.
Thanks alot 
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Not a question.
most folks call geometric progression a pyramid sceme if used on the public as shares or franchises but a penny a day plus a penny everyday are the one your stating
there is nothing in the world when it comes to savings as COMPOUNDING. free money on top of free money and it just keeps going from that….
and you can do 20% per month easy, becasue if you can well that makes you amazing
you can also lose all of your money this way
good luck with it
There is no investment in the world that can return 20% per month. Now one can argue that some individual stocks and other investments can return 20% in a single month, and thats true. But some stocks also lose 50% of their value in a single month, so the trick is in finding these 20% stocks consistently every month.
Every investment that can increase 20% in a single month involves a lot of risk, and so this is a strategy that will at some point wipe out your entire bankroll. This HAS to be this way – it’s economics 101.
If there was a “sure” investment that returned that much per month, everyone would be rich, inflation would spiral out of control, and the value of money would decline to almost nothing. And everyone would be poor again. So it’s not possible, sorry.
No bank in the World (except scam) can guarantee anything more than 4% returns. Plus, interest rate fluctuate constantly.
There is no shortcut (legal) of getting rich beside lottery or inheritance. Someone win big in stock which is same thing as the lottery.
That’s interesting. A more simple rule for me is the one that Albert Einstein called one of the most important principles for mankind. It’s called the Rule of 72.
You simply take your interest rate and divide it into 72. This tells you how many time periods it will take to double your money.
A 6% annual interest rate on your CD will double every 12 years (72 / 6 = 12). Likewise if you got 12% per year with your mutual funds your money would double every 6 years.
And if you got 6% per month with a Forex hedge strategy your money would double every 12 months. At 6% per month a $10,000 account would grow to $160,000 in 4 years.
I’ll bet that you don’t think that there is an investment strategy that can consistently earn 6% per month. Where do you think that the banks invest YOUR money? They earn over 6% per month and pay you 6% per year.
It doesn’t seem fair.