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Re: johnydollar post# 54904

Saturday, 06/23/2012 12:12:54 PM

Saturday, June 23, 2012 12:12:54 PM

Post# of 160013
Time is money! ALL investors must eventually come to realize that if they are to survive. Two investors buy the same stock on the same day at the same price. Each one invests $10,000. One is a swing trader, the other a position trader. Every single year the price of the stock fluctuates (oscillates) up and down (30% of it's price range for the year) from high to low three to five times a year along a trendline that gains an average of 20% per year in price. At the end of ten years, the position trader would have $61,917.36 ($10,000 compounded at 20% for ten years). But, the swing trader could very easily compound his earnings as high as 20 to 25% three to five times a years more than doubling his $10,000 every year for that same ten year period and realistically end up with more than $15,000,000 after ten years. Yes it's actually that big of a difference! If you don't believe me, here is an online compound interest calculator and you can play with the figures yourself and see what I'm talking about! http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php#results