Compound trading is a disciplined approach to growing a trading account by reinvesting profits, targeting consistent percentage returns, and scaling...

Compound trading is a disciplined approach to growing a trading account by reinvesting profits, targeting consistent percentage returns, and scaling position size as equity rises. Instead of aiming for sporadic windfalls, traders apply fixed risk per trade (e.g., 0.5-2%) and let gains build geometrically over time. This method leverages the power of compounding while emphasizing risk management, drawdown control, and process-driven execution. A clear plan defines entry criteria, stop-loss placement, position sizing formula, and compounding schedule (daily, weekly, or after new equity highs). By focusing on steady, repeatable edges, traders can smooth equity curves and avoid overexposure. Whether you trade forex, stocks, crypto, or futures, compound trading aligns growth with discipline: protect the downside, scale only when justified, and keep costs low. Use a compounding calculator, journaling, and performance metrics such as expectancy and maximum drawdown to stay accountable. Over months and years, small consistent gains can transform into meaningful capital growth.

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