When you trade on the Quotex platform, do you have a weekly profit target in mind? I certainly hope you do. It has been demonstrated that possessing one has several benefits and a beneficial psychological impact. You will make the entries necessary to advance towards your objective. On the other side, you will be able to take a break for the remainder of the week once you meet the weekly goal.
I want to demonstrate to you in this tutorial that you have a significant opportunity to generate at least 20% weekly profit. I’ll use a one-year trading scenario at Quotex with a $1,000 initial investment as an example.
Compounding your money in 1 year
50 weeks. This is the amount of time left over after subtracting the 52 weeks in a year for trading holidays. And now is the perfect opportunity to use the time-tested method of compounding to contribute 20% of the weekly return.
If everything goes according to plan, your account has a $1,000 starting balance, and your weekly profit target is 20%, you should make $200 over the course of the week’s five working days. You should have $1,200 by the next week.
The idea of compounding now suggests boosting wealth with earned profit. In this method, your target for the second trading week will be $240, or 20% of $1,200. You will definitely make a sizable profit if you carry on in this manner for the remaining 50 weeks of the year.
Yet, keep in mind that trading offers zero guarantees. You will undoubtedly experience some losses, even if you are the finest trader in the world. To avoid losing more money than you make when trading, exercise extreme caution.
Compounding strategy and Warren Buffet
One of the richest guys in our time is Warren Buffet. Let me just say that if you haven’t heard of him, his estimated net worth is $82 billion. The way he got there, though, is even more intriguing.
With $5,000 in money, Warren Buffet began investing when he was just 14 years old. Over the course of 70 years, his wealth increased to $82 billion. These figures allow you to determine that his annual return was between 25 and 26 percent.
At Quotex, this is more than a 20% weekly profit, so you’ll reach a million in a year.
See the graph above. With 20% weekly returns and a compounding method, one million can be reached in a year.
What we can take up from Warren Buffet is that you can create a fortune over time even with a relatively little return each week when you use compounding. Naturally, there isn’t a magic wand that will turn your millions into reality. This requires effort from you. Avert losses as well. This is another thing Warren Buffet has taught us. Don’t let your account balance drop.
Not always will this be achievable. You’ll undoubtedly suffer losses. However, resist giving up. If you study, practise, and execute, you can still get 20% at the end of the week even if you make a few mistakes.
Warren Buffet’s golden rules
Losses are a part of the game, as was previously said. Warren Buffet would advise against losing even a single dollar of your investment. Yet, we can state this as follows: never end the week with a balanced account that is smaller than it was at the start. Keep your focus off of that 20%.
You may only make 3% one week. But, you might reach 80% in another week. The most crucial factor is to generate any kind of profit. And you’ll observe that persistence pays off.
Trading versus investing
The majority of Warren Buffet’s fortune came from financial investments. The nature of trading is rather different.
You need to have a strategy to profit
Conventional buy-and-hold methods only generate profits when the stock value increases. Trading financial derivatives, on the other hand, enables you to profit regardless of whether prices are growing or dropping. As a result, your wealth can grow considerably more quickly than it would if you were an investor.
It is essential that you have a plan. You must possess one and understand how to use it if you want to generate money. Fortunately, you have a lot of options for strategies. Make sure to select the option that best suits you.
My earning story at Quotex
I got my start trading currency pairs. I gave in to the cryptocurrency craze, and I must confess, I did well financially. I chose to exit the market before it was too late, but the crypto bubble had to pop at some point. I only trade digital derivatives these days. You’ll notice that I traded in a variety of marketplaces. And because I made money on each, I can’t really tell which is superior.
The Bitcoin bubble burst in 2017. It might serve as a good illustration of why the buy and hold investing approach should be avoided. The price of bitcoin rose to more than $20,000 in a matter of months. But today, it is worth about $8,000. Consider an investor who purchased bitcoin for $20,000 and decided to keep it in the event that its price rose.
And now consider a trader in cryptocurrency derivatives. He has no coins in his hand. But he continues to profit from trading in the value of the coin. He can profit from the price changes as the price is either rising or lowering.
A few words about cryptos
Even when the value of cryptocurrencies is falling, there is still a potential for you to keep some of your initial investment. Other cryptocurrencies, meanwhile, have entirely fallen.
For instance, Ifan and Pincoin were involved in this. The folks who invested money in them lost everything. Nonetheless, some people are still making investments in brand-new cryptocurrencies. They think that those new cryptos will perform similarly to ETH or BTC. To be completely honest, I don’t see it occurring anytime soon.
I can only advise you to sign up for Quotex right away. Use compounding and set your weekly profit goal at 20% after practising for a while on a free demo account. If everything goes as planned, you should have a sizable account balance after a year.
I look forward to hearing from you. What do you think? Post your opinions in the space below.