Compounding strategy in the forex trading is a good strategy to be implemented when you want to get bigger profit than the amount of money you invest in the forex market . Compounding is a method to save all or part of gaining profit then compound it in trading capital so that the power of margin and lot size can be enlarged so the Investor can make greater profit than before.
Have you ever heard of warren buffet ? If you have not heard it then you need to know that he is one of the best investor ever. Even he became the richest man in the world in 2010 . Then what can we learn from his experience that making a successful warren buffet today with abundant of wealth ? Nothing else except Patience and Consistency . If we look back at how the amount of revenue generated from him does not exceed from 24.7 % per year , but because of his patience and consistency so that he can double his wealth to reach $ 62 Billion in 2010 .
We need to understand that high revenue obtained in in a short time can also be potential for higher losses for investors as it is always written inmany articles the law of forex trading is a High Risk High Return Bussiness . The principle that we should always remind by ourselves if we want to survive in forex market . Warren Buffet is someone who understood well that the investment market is very large and risky that only can be done someone who know how to control the risk. So that Warren Buffet would prefer to use the power of Compounding in his Investment business. Even the amount of profit are not too bigbut can running consistently until 49 years of his career in the investment world and bring him to be the richest man in the world .
As example for the application of compounding strategy can you find in the picture of this article :
Thus description of the compounding strategy from Warren Buffett and I hope this article may be useful for your Investment progress.
