HyperCompounding with Forex

Hyper Compounding

Hyper Compounding is a term that combines three ideas. The three ideas are generally not wed to one another. The first idea revolves around playing the most defensive game u can in the forex market. Your initial and only concern is to do everything in your power to minimize and control your losses. It is a known fact, if you are going to Trade, your going to loose money. Loosin

g money in of itself is not a bad thing, it is How you loose the money that is the issue. The worst mistake a trader can make is to be concerned about how much money he or she is going to make. “Profits”, will take care of themselves, losses on the other hand have to be isolated and shot with exstream prejudice. Loses must be defined and known to their fullest extent prior to their fruition. Your methodology in executing your Trading is only relevant to the extent that it helps you achieve this goal. The next part of this concept involves the understanding that at its core, all trading activities involve probabilities. Therefore if you are prepared for the highest number of possible outcomes that can occur, that will negatively impact your account, but are not necessarily probable. Its kind of like being able to loose your job, have your wife leave you or husband, get robed of all your worldly possessions and still being able to function better than the average person. The professional traders of true worth, do not utilize more than 1-2% of their equity in a single trade. I will add that to Newbies and “others” this concept involves not risking more than 25% of your entire account on all of your combined Trades at any one Time. To summarize the above statements for complete and total clarity, your trades must always be structured to allow you to loose 20 to 50 consecutive loses without it adversely affecting your account by no more than 35%. In the casino known as the “Market”, you must become the “HOUSE”. After the two mentioned ideas above have been mastered, then we visit the last and most boring aspect of this whole concept. I say boring, because it will test your patience. In the end however, it will bring you to the realization of unpararelled wealth. It will not make you happy, but it will make you rich. The assumption here, is that the concepts mentioned above are easily mastered. They are not. The last aspect of the concept is actually where the name for the concept is derived. It brings the forefront the idea that you don't have to make large profits in order to make real money in forex, or for that matter any market. It looks at the power of compound interest and assumes the smallest increment of gain on an averaged basis. The Chart below will show the power of just consistently gaining 1% equity and compounding that 800 times. Achieving this with minimal risk over time is the foundation or the essence behind this concept of Hyper Compounding.