The Magic of Compounding

Dear Liberated Stock Trader this article will show you what you need to do to become a millionaire. Yes really. However it is not as simple as it may seem. The key things you will need are:

1. Time
2. Patience
3. Some starting Capital

This article will not guarantee you will become a Millionaire, however it will show you how compounding your earnings over time can get you there.

What is compounding?

Compounding means in simple terms if you have $10 and you earn 10% on it you will have $11. If you then compound this money with another 10%, you will actually have $12.10. You have earned an extra 10 cents, on the previously earned interest. Do this long enough and the compounding works to accelerate your earnings.

This means you need to continually earn a steady income and continue to reinvest.

So how will this make me a millionaire?

Let’s take some real examples.

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