We’ve heard one of the smartest people in history – Albert Einstein – say, “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t… pays it.”
Heck, more people probably wonder how compound returns work than how the Pyramids of Giza were built.
Well, I’ll tell you one thing… you certainly don’t have to be Einstein to understand how compound interest works.
I’ve figured out a way to take small sums cash and compound my returns quickly… and I did it three times last year (I’ve actually figured out a better way to do it now that I’ll be sharing this Thursday).
You’re probably wondering, Jeff, okay I get it… I need compound returns in my life. How do I figure it out and apply it to trading?
Well, I’ll show you a simple way on how to use it your advantage… it might appear foggy to you now, but after you read this, it’ll be crystal clear.
Here’s how compound returns let’s say you can make around 20% a week on your returns… and you start with a $5,000 account.
Over time, as you return on your capital… your bet sizes will increase… and if you can consistently pull 20% returns every week… your account can grow very fast.
Let me put this into perspective.
You start with $5,000 to trade… and you figure out a way to return 20% of that money… well, the next week… you’re at $6,000… and when you continue to do that over the course of a few weeks… you can double your account.
Continue doing that… and your account quadruples from where you first started, in just a few months.
I know what you’re thinking, Jeff, how can I possibly return 20% on my money in this type of environment?
Well, you do it by trading stocks that aren’t affected by the market whatsoever… stocks that move to their own beat of their drum.
I’m talking penny stocks… and that’s how I’ve been able to grow my accounts quickly.
Well, on any given day… you’ll notice some of the top gainers are penny stocks.
Just take a look at some of the Wall Street’s top gainers on Friday…
You can clearly see a bulk of them are penny stocks.
So the simple answer: start trading pennies.
But the truth is, you can’t just spray and pray – buying these random stocks, thinking you’ll automatically become rich overnight… you have to put in some work, even if it’s just a few minutes a day.
What I mean by that is understanding how to find the best chart setups… and once you get the hang of it, it becomes a whole lot easier.
Here’s what I mean by that.
Take a look at this chart in Empire Oil Refineries (EORZ).
You’ll notice that there are two encircled areas… one where EORZ found support (just above the green line – the 20-day simple moving average)… and the resistance level.
With penny stocks, when you see the stock hold at support and skyrocket – breaking through the glass ceiling (resistance) – with volume behind it… that’s an indication the stock has legs.
Well, once I saw that happen… I knew it was time to buy… once it shot up above $0.036, I fired off some trades and bought at $0.037.
How did this help me compound my returns?
Well, I set myself up for success because this is one pattern I frequently use that has worked extremely well and uncovered some supernova trades before.
Sure enough, the stock had a massive move higher… and I was locking in a whopping 70% winner or $1,505 (keep in mind I’m trading a small account here that I started with just $3,000).
You see, when you have trades like this… and just learn to cut your losers – you’ll still end up with high returns on your total account… and that’s exactly how I approach the compound returns puzzle.
But the thing is, those returns didn’t satisfy me enough…
… so I went out and developed a new strategy – something I’ve been keeping from you until I worked out the kinks… and I’ve perfected it so I’m ready to share it with you LIVE this Thursday, Sept. 5 at 8:30 PM EST.
I’ll be revealing everything about my latest breakthrough – Boost – in my all-access interview with Jason Bond, and I’ll be showing you EXACTLY how you can “predict” your profits and find tomorrow’s biggest mover AHEAD of time…
… and why it’s the perfect strategy to build your account in the shortest time possible.
Heck, I’ll also be announcing my next supernova trade…