You can apply rule backwards as well. Let’s say you have a lump sum of $5,000 that you would like to grow into $10,000 in 8 years. You would need to find an investment that pays 9% compound interest. (72/8 = 9). If best you can find is an 8% return on your money (hypothetically speaking,) then it would take you 9 years to double your money. Not bad for just letting it sit there!

Now let’s assume that you want to help growth rate along, so you add an extra hundred dollars to this account each year. At end of 12 years, you would now have $3,800. If you could discipline yourself enough to add $200 a year, then you would find yourself with almost $5600. Seeing your money grow like this might well entice you to invest more money each month and really reap benefits of this wealth-generating principle. And there’s more good news. These examples demonstrate what happens when your investment compounds annually. Some institutions are more generous, compounding your interest quarterly, monthly or even daily.

It’s pretty clear which end of compound interest principle you want to be on. The first step toward winners’ circle is to pay off your existing debts. Even if you’re already having trouble making ends meet, a mere $1 addition to a minimum payment can significantly shorten life of that loan. That’s right, just one dollar. You won’t miss it and it would be well worth it. Remember compounding effect. And once you’re out of debt, there’s no minimum for earning compound interest. Any sum that you can set aside will do. You don’t need to be Donald Trump or Bill Gates in order to benefit from compound interest. It can work wonders for us all.

My Objectives

1.Right stocks 2.Right timing 3.Small losses 4.Big profits

My Weapons

1.Price & volume 2.Box theory 3.Automatic buy order 4.Stop-loss sell order

Cables

·I was 4 days behind Wall St movements (due to travels) ·I had a detached view ·I could not hear what people said but I could see what they did ·I realized how invaluable this was to me ·The inexplicable moves in my stocks usually coincided with some violent move in general market ·I could not apply mechanical standards to relationship between D-J Average and individual stock—judging this relationship was more like an art…like a painting ·I used Average only in order to determine whether I was in a weak or a strong market; a general market cycle influences almost every stock

Analysis

I compared prices of my stocks first with each other, then with D-J Average, and after I evaluated whether I should buy, sell or hold. I did this automatically without deeper analysis, as I was reading now and no longer spelling out alphabet Diary

Whenever I bought a stock, I wrote down my reason for doing so. I did same when I sold it. Whenever a trade ended with a loss, I wrote down reason I thought caused it. Then I tried not to repeat same mistake §I started to see that stocks have characters just like people. Some of them I could not handle. Each time I bought them they did me an injury §I began to take view that if a stock slapped me twice I would refuse to touch them anymore §The experience I gained through my cause-of-error tables became one of most important of all my qualifications; I began to see that it is like driving a car…(you) have to develop (your own) feeling for driving…only through experience

For: Mark Crisp http://www.stressfreetrading.com