How to Make a Million Dollars Using Secret of Compounding


Everyone wants to make a million dollars, but not too many people have any idea of how to do it. It can hardly be done with a salary or wages paid to you for work. The interesting thing about getting wealthy is that the less work you do, the more money you make! It must be done through the magic of compounding interest or compounding profits! Compounding profits by trading may be easier than compounding profits in the manner that Walmart stores do it. But to do it with trading stocks or futures and especially day trading, you must have a market advantage and be able to regularly take the profits and regularly and systematically increase the amount of your investment which you trading. But doing it the Walmart way involves great amounts of money in which you must lease or acquire real estate, hire employees, purchase multimillion dollars of inventory, advertise and hope that masses of people come to your store.


The margin day trading the S&P 500 mini ranges from $500 to $6,000 depending on the broker you might use. This provides each dollar with greater leverage toward making your million. If you have a $5,000 margin account and you make $5,000 over a month or so, you have made 100% per month or 1200% per annum! In the second month if you traded two contracts you would make $10,000. In the third month you could trade four contracts (your original $5,000 plus the profits from the first month of $5,000 and the profits of $10,000 from the second month gives you $20,000 with which to trade.) This routine you would continue until your long term profit objective of one million is accomplished.


This is powerful. Einstein said that compounding interest was the world's greatest invention. Compounding profits in futures day trading can be extremely faster than compounding bank interest!


Consider the following schedule of trades for which the example below shows that $5,000 can be made monthly: ACCOUNT MARGIN $5,000. 


For those readers which doubt that it can be done. It is already a matter of record THAT IT HAS ALREADY BE DONE! The legendary trader, Larry Williams, accomplished this and more in 1987 in a contest sponsored by Robbins Futures to see who could make the most money within one year starting with only a $10,000 account. Larry Williams finished with a profit of $1,137,000! This was audited by IRS and no one has ever been able to fault this extraordinary profit.  Okay, you say, I don't need that much money, I just need $68,000 per year for a nice living in my retirement. If you trade two contracts and average $34,000 per year year, this would provide the $68,000. You need $102,000 to pay your commitments and mortgage? Trade three contracts which provide $34,000 per contract. Or you could trade 1 crude oil contract, one trade per day, which made $51,060 in profits in 2012. Trading 1 mini crude oil contract, made $19,291 in 2012; trading two mini crude oil contracts therefore would have made $38,582!

ACCOUNT MARGIN            $5,000.                                     PROFIT            CUM ACCOUNT

1.         1 contract                                                                     $5,000           $10,000          

2.         2 contracts                                                                   10,000             20,000

3.         4 contracts                                                                   20,000             40,000

4.         8 contracts                                                                   40,000             80,000

5.         16 contracts                                                                 80,000            160,000

6.         32 contracts                                                                 160,000          320,000

7.         32 contracts                                                                 160,000          480,000

8.         32 contracts                                                                 160,000          640,000

9.         32 contracts                                                                 160,000          800,000

10.       32 contracts                                                                 160,000          960,000

11.       32 contracts                                                                 160,000       1,120,000