Today I made +2.92%.

Definitely not my best day trading, though far from my worst. Every green day is something to be proud of. You may be wondering, but Josh, how much did you actually make today just by trading stocks? My response would be, “close to 3%.”

The dollar amount of money that I made on the day is irrelevant. It could have been $2 or it could have been $200, and the truth is that it would all be the same either way. Hearing this may sound strange as if I don’t care about how much I made. The fact is I do, but what matters is that green percentage. It’s tough to think big picture, and I even find myself struggling to do so at times, though it is the only way that you will ever see results. Here’s why:

Say that I had a starting investment of $100, and on the day I made 3%. Whoah $3 profit… DAMN!!! I can buy a whole pack of gum!?

I know you’re not thinking that… but stay with me.

What if instead of buying that pack of gum, I then took that $103, and reinvested it the following day, making another +3%, but this time of $103?

Great!!! I now have a whopping total of $106.09

But wait! What if you continued to repeat this pattern?

If I followed this trend, after a year of daily investing (365 days for simplicity) I would have a total of $4,847,868.46. All from $100.

That small consecutive profit turned into millions, in a very short amount of time. This is the reason that the dollar amount that you make on the day DOESN’T MATTER. To see results you need to find a way to invest in something that will consecutively result in a positive percentage. This varies differently from person to person, you just have to find what works for you. Focus on the percentage return and repeating results, no matter what it is you are investing in, and you will come out lightyears ahead than if you were just focused on that $3.

Investing

CATEGORY

4/03/2020

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Why Percent MATTERS! (and $$ doesn’t)

  1. Kristen says:

    What would you suggest for a beginner? I have a Robin Hood Account but that’s the extent of my knowledge 😊.

  2. Jade says:

    Great posting! Very interesting can’t wait to see what else you write.

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