What are your trading goals? What do you plan to achieve by trading? Do you want to earn just enough money to augment your income from your day job? Or do you want to become a full-time trader who earns money solely from trading?
If you’re feeling overwhelmed right now, don’t worry, you don’t have to answer those questions immediately. Maybe you’re just a beginner and you’re still trying to learn the ropes. You don’t need to have everything figured out right now.
What you do need to have, however, are weekly profit objectives. Weekly profit objectives can help you stay focused, become more organized, and become more motivated in reaching your goals. This is very important for any beginner trader, especially if you want to earn very large sums, like a million, from trading.
That’s right, a million. What if I tell you that through the power of compounding, you have a possibility of earning a significant amount by earning up to 20% of weekly profit, given the associated risks, on Binomo?
It sounds impossible, I know. Going from a $1000 account balance to up to a $1 million account balance is something that sounds unimaginable for most people. But in today’s article, I’ll show you exactly how you can do this. Please bear the associated risks in mind.
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How to use the power of compounding to transform 1000 dollars into up to 1 million dollars in one year on Binomo?
We’ve got 52 weeks every year. Without counting non-trading days, that means around 50 weeks that you can trade and achieve your weekly profit objectives. If you start with just $1000 and use the power of compounding, you can grow your money to reach up to $1 million in a year, with the associated capital loss risks, provided that you earn at least 20% weekly profit.
So, how do you use the power of compounding?
Let’s say your initial balance is $1000. You set a weekly target of 20%, which means that at the end of this week, you should have $1200. By the start of next week, your initial trading balance should be $1200, and your new earning goal should be $240 because that’s 20% of $1200.
This is what we call the power of compounding. You’re reinvesting your profits back into your capital and by doing so, you’re increasing your earning potential each time. If you do this consistently, there is a possibility of reaching significant sums at the end.
Lessons from Warren Buffett, one of the most successful traders in the world
Any aspiring trader would be familiar with Warren Buffett, one of the most successful traders in the world. His net worth is roughly $69 billion, a large percentage of which he earned as an investor and a trader. Currently, he’s the CEO and founder of Berkshire Hathaway, a holding company that owns many smaller companies all over the world, such as GEICO, Dairy Queen, and Duracell, among many, many others.
The most amazing thing about him, however, is the way he started his career as a trader and managed to accumulate wealth.
The importance of patience
Buffett was only 11 years old when he first dipped his toes into the world of trading. His first stock was Cities Service, an oil service company. Along with his sister, Buffett bought six shares at $38 per share for a total of $228 or $3780 in today’s money.
Sadly, after just a few weeks, the share prices dropped to around $13. Buffett’s sister told him they should cash out before they lose everything, but he decided to hold onto it. Eventually, it rose up to $40 per share and he sold immediately, cashing in a $2 per share profit.
Soon afterward, prices rose to around $200 per share, much to the chagrin of the young Warren Buffett.
How to use the power of compounding
With his seven decades in the investing world, it’s obvious that Buffett has already encountered several highs and lows. He learned a lot in the process, letting him hone his skills as a trader and investor. Buffett then used this experience to grow his own company, which is now currently enjoying a return of 25%-26% per year.
If you want to try and earn up to 20% weekly profit on Binomo, you could use a similar strategy the world’s greatest investor.
For Warren Buffett, even a seemingly low percentage return can generate millions or even billions over time, as long as he uses the power of compounding.
That said, you have to learn to be both careful and patient at the same time. Don’t make hasty decisions just to reach your 20% weekly profit goal. Make sure to keep this in mind when you’re trading money on the Binomo platform.
Ultimately, your might set your goal to earn 20% weekly profit in 5 days. So if you had $1000 by Monday, you need to have $1200 by the end of Friday. Even if you encounter some losses, the money you earn should be enough to cover them. Please bear in mind the associated capital loss risks.
Of course, losses are inevitable, no matter how good you are at trading. Nobody profits all the time, not even Warren Buffett. But just like Warren Buffett, you should know how to bounce back and try again. Every single dollar that invested before was saved and reinvested again.
If you trade wisely and with great consideration, you have a chance stay profitable despite a few losses here and there. You may not always clear your 20% weekly profit goal, but remember that you can always try again next week.
Simply put, the best way to become a millionaire is to consistently put in the effort and try to reach your goals.
Trading vs investing
Warren Buffett is both a trader and an investor, but most of his wealth was mostly accumulated due to investing. So, what’s the difference between the two?
Investing usually pertains to buying stocks with the purpose of holding them in the long-term. Trading, on the other hand, usually means you’re only going to hold a stock for a specific period of time, typically until it becomes profitable to sell.
For example, many investors use the buy and hold strategy to wait for the stock’s value to rise. Traders, meanwhile, capitalize on price fluctuations in the market to earn money. They don’t need to wait for a $20 stock to rise up to $100 before selling all their shares. They simply need to wait for the time that the $20 stock fluctuates to $30 before cashing in on the profits. They then do that multiple days, weeks, or even months in a row.
This means that traders can get richer much faster than traditional investors since the former can grow their money on a much shorter timeframe.
Not to mention, traders can also use different approaches, based on their personal trading strategy and preferences. For investors, most of the time they simply resort to the buy and hold strategy because that’s already an effective strategy. Traders can be more creative with their strategies because there’s no one way to succeed in trading. The only thing to remember is that you should always use some degree of caution if you want to see real growth in your account balance.
How I managed to earn a million on Binomo
My personal trading story sounds similar to many others in this industry.
I first started out as a trader of derivatives on an online platforms before getting caught up in the cryptocurrency hype. For a while, I was making decent money trading cryptocurrencies. At the time, I couldn’t think of a reason to stop trading. But I also had the hunch that like all bubbles, the cryptocurrency bubble would also burst eventually. Fortunately for me, I managed to escape before the collapse happened.
Nowadays, I trade derivatives online exclusively. It makes me good money as well and it’s quite stable in my case, given the associated risks. What I can say is that there isn’t one specific strategy or market that made me particularly wealthy. Each one of them has made me some amount of money, and I used that money to reinvest in other markets and earn even more money.
Remember what I said about the buy and hold strategy which is typically used by traditional investors to gain wealth? Well, it’s not perfect either, and the recent cryptocurrency bubble burst proved that.
Back in 2017, before the bubble burst, Bitcoin prices were going as high as $20,000 per BTC. That’s why everyone was getting into the hype, carelessly ‘investing’ their hard-earned money into something they didn’t know much about before that. When the bubble burst, Bitcoin prices fell dramatically. Today, BTC prices rarely ever cross the $10,000 threshold. Imagine all the people who bought BTC during its peak. They’re probably still waiting for the day that BTC crosses $20,000 again.
That said, I’m not trying to warn you against trading cryptocurrencies. All I’m saying is that you have to be careful about the things you invest in. Bubbles happen all the time and you have to be smart enough to see them coming before they burst in your face.
One alternative to trading cryptocurrency is trading cryptocurrency derivatives. With cryptocurrency derivatives, you still get to earn money if your prediction is correct, regardless of whether the crypto’s value rises or drops.
How to succeed with cryptocurrency?
Cryptocurrencies are very volatile, that much is certain, and hence carry significant risks with them. If you invest in crypto, you’re never actually sure if your ROI will be as high as what you’re expecting. Basically, the only way to succeed with cryptocurrency is if you can sell your coins at the peak of their prices. Waiting just a moment longer could be dangerous since crypto prices can drop dramatically in just a short time.
Cryptocurrencies always have the possibility of failing. Do you remember Ifan and Pincoin? They made headlines in 2018 after they suddenly disappeared, taking almost $660 million in tokens with them. The two companies were soon revealed to be a scam designed to steal money from their traders.
Sadly, beginner traders tend to invest in these new cryptocurrency companies all the time, without realizing that they could be walking straight into a scam. If you’re still new to the trading world, I recommend that you only invest in reputable cryptocurrencies and platforms, like Binomo for example.
By trading consistently and using the power of compounding, you too can have a chance to earn as much as a million with just a $1000 initial capital, being knowledgable and aware of the risks. Before you do, make sure to practice first on the free Binomo practice account!
Good luck on your trading journey with Binomo!