It sounds familiar for me now if someone says compounding or build up about something, it starts slowly at the beginning but once it gets big I could not recognize it anymore how far and how fast I become. Compounding effect in trading industry is common practice for most traders including me who just started this venture, this phenomenon is like a snowball rolling down from the mountain where at the beginning the snowball is so small but over descending the peak, it gets bigger and bigger. It is absolutely 100% the same with my trading journey, 10 Months ago where I first started, I did not know what market structure is, I did not know how to calculate risk per trade, I did not know how to do money management over my equity and many more. In contrary at this stage, there is an improvement about it I would say and still many more things to learn.
Trading involve high risk of losing money, its not financial advice for publicly persuade you into trading. Do a research first and manage your own risk.
I have been compounding all the trading knowledge from the day I started starring at the chart and execute the trade, making mistake? of course even a lot of mistake that I could not even count, ahahahha. Margin call or getting liquidated? he was my true friend for the first 3 months of my trading journey. I remembered that I deposite in total around 300-1000 AUD over the first 3 months of the journey, I made money then I lost it over the next few days. This cycle keep happening again and again until one moment that I decided “okay, I could not do it this way otherwise I would stuck on this loop forever”. I decided to cash in around 2000AUD, and it was huge amount for me as a novice but I was so serious because it was big money so I started to look after carefully. Still almost get liquidated ahahah due to FOMO and revenge trading. Luckily I did not get liquidated, god still have a faith in me and so am I.
Every morning before I go to work, I remember always watching youtube guru’s about how to become profitable trader, how to flip from 200 to 10.000usd which is I realised now it seems impossible and highly risky stupid things to do. I consumed too much social media stuff couple month back where the time I began this journey, I saw many individual making 1k-10k in a single trade and i thought that I wanted that shortcut and rushed the process which resulted margin call or get liquidated.
Fast forward to this present time where I am typing this passage exactly on 12/08/26, I realised many things over my trading strategy, risk management and trading psychology. One thing I realised is backtesting actually helping me build confident and conviction toward the trade that I will execute. Why? From backtesting I found that trading is about statistical data and probability, even I backtested the data from 5-10 years ago which is not relevant with the current market but at the end I found confident once I backtested my trading method. At this stage, if I want to execute a trade, I always wait for several confirmation and based on the data that I got. Whether the trade will TP or SL, it does not matter anymore for me.
I do believe on my potential for becoming a profitable trader one day, not in a rush, just believe the progress and enjoy the grind. Why I declare it like this? Its just because I must believe and have a faith on my own, somehow not everyone will likely have a faith on myself but the only one will trust me is simply “ME”. The compounding effect will guide me one day about how far that I have been progressing through ups and down. Once the knowledge and psychological align, I will be a profitable trader.
COMPOUNDING EFFECT WILL IMPROVE THE KNOWLEDGE EXPONENTIALLY, STEADILY AND GRADUALLY.
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