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Trading and Compounding
In order to beat the markets it is imperative that you apply a systematic approach over time. It is naive to expect you will get rich overnight. But you certainly can get rich in the markets if you have the discipline to stick with it.
An initial account of $100,000 would have grown to over $3,500.000 in just six years!
Time and the power of compounding takes over if you can be consistent. Compounding is essential.
Investment Return of $100,000
WITHOUT COMPOUNDING
(WITHOUT REINVESTING THE PROFITS)
YEAR Dollar Return % Return
1993 $ 40,613 = 40.61%
1994 $ 35,100 = 35.10%
1995 $ 46,050 = 46.05%
1996 $ 41,725 = 41.73%
1997 $213,313 = 213.31%
Until 08/98 $165,250 = 165.25%
Maximum historical Drawdown: 25%
You must be patient and allow time to work its course. Investors must be psychologically prepared to stick with Robert Russell Futures Trading through good times and bad. You will never reach your goal as an Investor if you can not maintain discipline.
General Rules for Investing
Understand why you are in the markets. Gambling thrill or to make money?
Use an approach and don't deviate from it.
Learn to accept many small losses.
Do not look at quotes during the day.
Greed kills.
Big movements take time to develop. Stay patient.
Nothing new ever occurs in the markets.
Don't try to predetermine your profits.
Don't be overly curious about the rationale behind a move.
Trade your money not the markets.
The classic text Reminiscences of a Stock Operator published in 1923 offers timeless wisdom for all investors and traders:
"Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after an investor has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance."
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