Do you have a weekly profit target while trading on the Olymp Trade platform? Well, I hope you do. It is proven that having one brings a lot of advantages and has a positive psychological effect. You will enter the transactions that will move you towards your goal. On the other hand, when you reach the weekly target you will know, you can take a break for the rest of the week.
In this guide, I want to show you that you have a huge earning potential of at least 20% weekly profit. I am going to talk of an example of trading at Olymp Trade for 1 year with an initial sum of $1,000.
|→Setting a weekly profit target can have positive psychological effects on your trading performance.|
|→Compounding profits is a powerful strategy to grow wealth over time, as demonstrated by Warren Buffet’s success.|
|→Consistency in making profits, even if they are not always 20%, is crucial for long-term success in trading.|
Compounding your money in 1 year
50 weeks. This is the time left after deducting holidays in the trading business from 52 weeks in a year. And this is the time to work the well-proven science of compounding to provide 20% of the weekly return.
Assuming that everything goes according to plan, that your initial balance account is $1,000 and your weekly profit target is 20%, you should gain $200 during 5 working days of the week. The following week, you should have $1,200.
Now, the compounding concept implies adding earned profit to the capital. This way, in the second week of trading, your goal will be 20% from $1,200 that is $240. If you continue like this for 50 weeks of the year, then you will have a huge profit indeed.
However, keep in mind that there is absolutely no guarantee when trading. Even if you’re the best trader in the world, you’re bound to encounter some losses. Be very careful when trading so that you don’t lose more than you win.
Compounding strategy and Warren Buffet
Warren Buffet is one of the richest men of our time. If you haven’t heard of him, let me just tell you that his net worth is estimated at $82 billion. But what is even more interesting is how he had come there.
Warren Buffet started investing at the age of 14 with $5,000 capital. During 70 years, his wealth has grown up to $82 billion. You can calculate from these numbers that his annual return was about 25-26%.
Well, this is more than a 20% weekly profit at Olymp Trade that will lead you to a million in one year.
Look at the chart above. 1 million within a year with 20% weekly returns and compounding strategy can work.
What we can learn from Warren Buffet is that even with quite a small return per week when using compounding you can make a fortune over time. Of course, there is no magic wand that will make your millions true. You need to work for this. And avoid losses. This is also the lesson from Warren Buffet. Do not lose money from your account.
This won’t be always possible. You will surely experience losses. However, don’t get discouraged. Even with a few steps backward, you are still able to get 20% at the end of the week as long as you study, practice, and execute.
As was said earlier, losses are part of this game. Warren Buffet would say not to lose even one dollar from your funds. But we can put this in these words: never close the week with a balanced account smaller than in the beginning. Don’t stay fixated on that 20%.
Maybe one week you will only make 3%. But another week you might close at 80%. The most important thing is to make some profit at all. And you will see that consistency bears fruit.
Trading versus investing
Warren Buffet’s wealth was made mainly by money investments. Trading is kind of a different story.
Traditional strategies based on buy and hold are bringing the profit only when the value of the stock grows. Financial derivatives trading, on the other hand, allows you to make money no matter the prices are rising or falling. As a result, your fortune can expand much faster than if you were an investor.
It is vital, that you have a strategy. If you want to make money you need to have one and know how to use it. Fortunately, there are plenty of strategies you can choose from. Make sure you pick the one that suits you best.
My earning story at Olymp Trade
I started as a currency pair trader. I fell into cryptocurrencies’ madness and I have to admit I made good money. However, the crypto bubble had to burst at some point, so I decided to get out before it’s too late. Nowadays, I trade digital derivatives only. As you can see, I traded in various markets. And I earned money on each so I cannot really say that one is better than another.
In 2017 the cryptocurrency bubble exploded. It could be a good example of why the buy and hold investing strategy is not good. In just a few months the value of bitcoin increased to more than $20,000. But today its value is around $8,000. Imagine investors who bought bitcoin at $20,000 and hold it still in the hope it will rise again.
And now think about cryptocurrency derivatives trader. He does not hold coins. But he still makes money trading on the coin’s price. The price is rising or falling, and he can earn a profit on those price fluctuations.
Pros and Cons of Trading on Olymp Trade Platform📊
- 👍 User-friendly interface
- 👍 Availability of multiple trading assets
- 👍 24/7 customer support
- 👎 Potential losses due to market fluctuations
- 👎 Requires a well-defined trading strategy and discipline
|Trading Advantages||Trading Disadvantages|
|Flexibility in trading various assets||Highly dependent on market conditions|
|Profit potential in both rising and falling markets||Risk of losses due to emotional trading|
|Opportunity for compounding profits||Requires consistent effort and continuous learning|
|Access to a variety of trading strategies||Risk of overtrading and burnout|
A few words about cryptos
When cryptocurrency’s value is decreasing, you have still a chance to get away with a part of your initial capital. However, some cryptos have completely collapsed.
This happened, for example, with Ifan and Pincoin. The people who put the money in them lost the entire investment. Nevertheless, there are still some who continue to invest in new cryptocurrencies. They believe those new cryptos will perform like BTC or ETH. To be honest, I don’t see it happening in the nearest future.
What I can recommend to you is to open the Olymp Trade account now. Practice for a time on a free demo account and after, use compounding, and target at 20% weekly profit. If everything goes according to plan, in one year you will have quite the account balance.
I would be happy to hear from you. How do you see it? Write your views in the comments section below.
I wish you success!
Commonly Asked Questions❓
- Q: How can I set a weekly profit target while trading on Olymp Trade?
- A: Calculate a realistic percentage of your current trading balance, such as 20%, and aim for that amount in profits each week.
- Q: How does the compounding strategy work?
- A: Compounding involves reinvesting your profits back into your trading capital, allowing for potentially exponential growth over time.
- Q: What are some tips to maintain consistency in trading?
- A: Develop a well-defined trading strategy, manage risk effectively, and focus on long-term growth instead of short-term gains.
- Q: How can I minimize losses while trading on Olymp Trade?
- A: Implement proper risk management, follow a disciplined approach, and continually refine your trading strategies based on experience and market changes.
- Q: What are the key differences between trading and investing?
- A: Trading involves short-term buying and selling of assets for profit, while investing focuses on long-term growth through asset appreciation and income generation.
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