📈 My experiment with compound interest: how $100 can turn into $23,735

I decided to analyze a simple yet very powerful model of capital growth — compound interest in trading. Traders often look for huge returns, but in practice, even stable +20% on a trade can lead to exponential capital growth.

I took a simple example.

Starting capital: 100$
Each trade: +20%
After the trade, all capital is reinvested.

The formula for capital growth looks like:

Capital = start × (1.2ⁿ)

where n is the number of trades.

📊 First trades

After 10 trades, capital grew to ≈619$.
At this stage, many think that the strategy 'doesn't work' because the growth seems slow.

But this is where the most interesting part begins.

🚀 Final stage

On the 30th trade, capital exceeds 23,737$.

🧠 What I learned from this calculation

The main force of trading is not huge multiples, but stability and discipline.

The first 20-25 trades the growth seems slow.
But after that, capital starts to grow exponentially.

For example:

  • Profit from the 10th trade ≈ 103$

  • Profit from the 30th trade ≈ 3,956$

This is the effect of compound interest.

📌 My conclusion

If a trader is capable:

  • consistently take ~20%

  • adhere to risk management

  • reinvest profits

then even a small starting capital can grow into a large portfolio.

Sometimes in the market it is more important not to look for x100, but just to repeat the right action many times in a row. 📊🚀