Our guest blogger Tim Young turned £200 into £84,000 in 2 years – and then lost it all. Read here what lessons he learned.
This article is written by Tim Young.
ABOUT THE AUTHOR: Tim Young is a FTSE100 Day Trader from the UK. You can follow him on Twitter @timcyoung999 or follow his trades on the social trading site Ayondo - his trader name is FTSETrading.
Albert Einstein described compounding as the eighth wonder of the world. A few years ago
when I was working in a completely unrelated job to trading, I thought about how I could harness the incredible power of compounded returns to conduct a financial experiment to see how much I could turn £200 into in as short a time as possible. (Important – Don't ever trade with money you can't afford to lose!) I downloaded a compound interest calculator onto my smartphone and was astonished at the potential returns. Let’s say you were spreadbetting the FTSE 100 and you had £200 in your account.
Armed with some basic technical indicators to indicate oversold and overbought conditions I set about trying to scalp 10 points at a time on the FTSE. Each time I achieved 10 points I increased the stake by 10%. Let’s say you started at £2 a point and increased the stake by 10% each time. If you were lucky enough to achieve that relatively modest points target each time, guess how much the stake would be after 100 trades?
Well the answer is an astonishing £42,265.28 per point. You’re probably thinking “Yes, but you’re never going to do 100 winning trades in a row!” Amazingly within about 3 months my account had grown to over £7000 and within another 6 months it was up to about £42,000. I had visions of being the richest man on planet earth!
Unfortunately after the total had increased to nearly £84,000, I took on far too much Leverage and the metaphorical tower I had been building came crashing down. Even though I was playing with “The House Money” after taking my own £200 out plus some of the profits, the emotional impact of losing money was devastating.
While I was at the peak of my success a wise person advised me to take out a lot of the money because “The Market has a way of calling back it’s loan.” How right he was!
The main 3 lessons I learnt from this experience were:
1. Don’t trade with money that you can’t afford to lose
2. Try to incorporate the power of compounding/exponential returns into your strategy
3. DON’T OVERLEVERAGE!
I have since gone back to the drawing board and totally redesigned my system, and am now consistently growing my FTSE 100 Day Trading account, but not nearly as fast as before!
ABOUT THE AUTHOR: Tim Young is a FTSE100 Day Trader from the UK. You can follow him on Twitter @timcyoung999 or follow his trades on the social trading site Ayondo - his trader name is FTSETrading.
Albert Einstein described compounding as the eighth wonder of the world. A few years ago
when I was working in a completely unrelated job to trading, I thought about how I could harness the incredible power of compounded returns to conduct a financial experiment to see how much I could turn £200 into in as short a time as possible. (Important – Don't ever trade with money you can't afford to lose!) I downloaded a compound interest calculator onto my smartphone and was astonished at the potential returns. Let’s say you were spreadbetting the FTSE 100 and you had £200 in your account.
Armed with some basic technical indicators to indicate oversold and overbought conditions I set about trying to scalp 10 points at a time on the FTSE. Each time I achieved 10 points I increased the stake by 10%. Let’s say you started at £2 a point and increased the stake by 10% each time. If you were lucky enough to achieve that relatively modest points target each time, guess how much the stake would be after 100 trades?
Well the answer is an astonishing £42,265.28 per point. You’re probably thinking “Yes, but you’re never going to do 100 winning trades in a row!” Amazingly within about 3 months my account had grown to over £7000 and within another 6 months it was up to about £42,000. I had visions of being the richest man on planet earth!
Unfortunately after the total had increased to nearly £84,000, I took on far too much Leverage and the metaphorical tower I had been building came crashing down. Even though I was playing with “The House Money” after taking my own £200 out plus some of the profits, the emotional impact of losing money was devastating.
While I was at the peak of my success a wise person advised me to take out a lot of the money because “The Market has a way of calling back it’s loan.” How right he was!
The main 3 lessons I learnt from this experience were:
1. Don’t trade with money that you can’t afford to lose
2. Try to incorporate the power of compounding/exponential returns into your strategy
3. DON’T OVERLEVERAGE!
I have since gone back to the drawing board and totally redesigned my system, and am now consistently growing my FTSE 100 Day Trading account, but not nearly as fast as before!
XTB Reports Strong Q1 Results: Revenue Up as Active Clients Soar 45%
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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