The Magical Effects of Compounding Small Daily Gains

 

 
Annual Compounding Examples of Various Daily Net Gains in Day Trading*
  
  
  
  
  
  
   
Each Day
0.50%
1.00%
1.50%
2.00%
   
Start Value
$25,000
$25,000
$25,000
$25,000
   
End Value
$87,859
$306,850
$1,065,081
$3,674,373
   
Annual % Gain
251%
1127%
4160%
14597%
 
 
 
 
 
 
 
So, if you traded every business day for a year, and earned one percent per day, you would make 1127%. 2% per day turns $25,000 into almost $3.7 million in a year.
 
Any financial calculator will compute these results, but we have done the day-to-day returns below for those who want to see how this amazing compounding effect actually works. If you want to verify this, use any online calculator, like the one HERE and put in one of the daily performance rates above as annual interest, and 252 years as the period, to fool it into using daily interest instead of annual, and you'll get these same results. (252 is the number of market days in a year, used for all of these calculations.)
 
 
 
 
 
 
   
Starting Capital
$25,000
$25,000
$25,000
$25,000
Day 1
1/4/2010
$25,125
$25,250
$25,375
$25,500
2
1/5/2010
$25,251
$25,503
$25,756
$26,010
3
1/6/2010
$25,377
$25,758
$26,142
$26,530
4
1/7/2010
$25,504
$26,015
$26,534
$27,061
5
1/8/2010
$25,631
$26,275
$26,932
$27,602
6
1/11/2010
$25,759
$26,538
$27,336
$28,154
7
1/12/2010
$25,888
$26,803
$27,746
$28,717
8
1/13/2010
$26,018
$27,071
$28,162
$29,291
9
1/14/2010
$26,148
$27,342
$28,585
$29,877
10
1/15/2010
$26,279
$27,616
$29,014
$30,475
11
1/19/2010
$26,410
$27,892
$29,449
$31,084
12
1/20/2010
$26,542
$28,171
$29,890
$31,706
13
1/21/2010
$26,675
$28,452
$30,339
$32,340
14
1/22/2010
$26,808
$28,737
$30,794
$32,987
15
1/25/2010
$26,942
$29,024
$31,256
$33,647
16
1/26/2010
$27,077
$29,314
$31,725
$34,320
17
1/27/2010
$27,212
$29,608
$32,201
$35,006
18
1/28/2010
$27,348
$29,904
$32,684
$35,706
19
1/29/2010
$27,485
$30,203
$33,174
$36,420
20
2/1/2010
$27,622
$30,505
$33,671
$37,149
21
2/2/2010
$27,761
$30,810
$34,176
$37,892
22
2/3/2010
$27,899
$31,118
$34,689
$38,649
23
2/4/2010
$28,039
$31,429
$35,209
$39,422
24
2/5/2010
$28,179
$31,743
$35,738
$40,211
25
2/8/2010
$28,320
$32,061
$36,274
$41,015
26
2/9/2010
$28,461
$32,381
$36,818
$41,835
27
2/10/2010
$28,604
$32,705
$37,370
$42,672
28
2/11/2010
$28,747
$33,032
$37,931
$43,526
29
2/12/2010
$28,891
$33,363
$38,500
$44,396
30
2/16/2010
$29,035
$33,696
$39,077
$45,284
31
2/17/2010
$29,180
$34,033
$39,663
$46,190
32
2/18/2010
$29,326
$34,374
$40,258
$47,114
33
2/19/2010
$29,473
$34,717
$40,862
$48,056
34
2/22/2010
$29,620
$35,064
$41,475
$49,017
35
2/23/2010
$29,768
$35,415
$42,097
$49,997
36
2/24/2010
$29,917
$35,769
$42,728
$50,997
37
2/25/2010
$30,067
$36,127
$43,369
$52,017
38
2/26/2010
$30,217
$36,488
$44,020
$53,057
39
3/1/2010
$30,368
$36,853
$44,680
$54,119
40
3/2/2010
$30,520
$37,222
$45,350
$55,201
41
3/3/2010
$30,672
$37,594
$46,031
$56,305
42
3/4/2010
$30,826
$37,970
$46,721
$57,431
43
3/5/2010
$30,980
$38,349
$47,422
$58,580
44
3/8/2010
$31,135
$38,733
$48,133
$59,751
45
3/9/2010
$31,291
$39,120
$48,855
$60,946
46
3/10/2010
$31,447
$39,511
$49,588
$62,165
47
3/11/2010
$31,604
$39,907
$50,332
$63,409
48
3/12/2010
$31,762
$40,306
$51,087
$64,677
49
3/15/2010
$31,921
$40,709
$51,853
$65,970
50
3/16/2010
$32,081
$41,116
$52,631
$67,290
51
3/17/2010
$32,241
$41,527
$53,421
$68,635
52
3/18/2010
$32,402
$41,942
$54,222
$70,008
53
3/19/2010
$32,564
$42,362
$55,035
$71,408
54
3/22/2010
$32,727
$42,785
$55,861
$72,837
55
3/23/2010
$32,891
$43,213
$56,699
$74,293
56
3/24/2010
$33,055
$43,645
$57,549
$75,779
57
3/25/2010
$33,220
$44,082
$58,412
$77,295
58
3/26/2010
$33,387
$44,523
$59,288
$78,841
59
3/29/2010
$33,553
$44,968
$60,178
$80,417
60
3/30/2010
$33,721
$45,417
$61,080
$82,026
61
3/31/2010
$33,890
$45,872
$61,997
$83,666
62
4/1/2010
$34,059
$46,330
$62,927
$85,340
63
4/5/2010
$34,230
$46,794
$63,871
$87,046
64
4/6/2010
$34,401
$47,262
$64,829
$88,787
65
4/7/2010
$34,573
$47,734
$65,801
$90,563
66
4/8/2010
$34,746
$48,212
$66,788
$92,374
67
4/9/2010
$34,919
$48,694
$67,790
$94,222
68
4/12/2010
$35,094
$49,181
$68,807
$96,106
69
4/13/2010
$35,269
$49,672
$69,839
$98,028
70
4/14/2010
$35,446
$50,169
$70,886
$99,989
71
4/15/2010
$35,623
$50,671
$71,950
$101,989
72
4/16/2010
$35,801
$51,177
$73,029
$104,029
73
4/19/2010
$35,980
$51,689
$74,124
$106,109
74
4/20/2010
$36,160
$52,206
$75,236
$108,231
75
4/21/2010
$36,341
$52,728
$76,365
$110,396
76
4/22/2010
$36,523
$53,255
$77,510
$112,604
77
4/23/2010
$36,705
$53,788
$78,673
$114,856
78
4/26/2010
$36,889
$54,326
$79,853
$117,153
79
4/27/2010
$37,073
$54,869
$81,051
$119,496
80
4/28/2010
$37,258
$55,418
$82,267
$121,886
81
4/29/2010
$37,445
$55,972
$83,501
$124,324
82
4/30/2010
$37,632
$56,532
$84,753
$126,810
83
5/3/2010
$37,820
$57,097
$86,024
$129,346
84
5/4/2010
$38,009
$57,668
$87,315
$131,933
85
5/5/2010
$38,199
$58,245
$88,624
$134,572
86
5/6/2010
$38,390
$58,827
$89,954
$137,263
87
5/7/2010
$38,582
$59,415
$91,303
$140,009
88
5/10/2010
$38,775
$60,010
$92,673
$142,809
89
5/11/2010
$38,969
$60,610
$94,063
$145,665
90
5/12/2010
$39,164
$61,216
$95,474
$148,578
91
5/13/2010
$39,360
$61,828
$96,906
$151,550
92
5/14/2010
$39,556
$62,446
$98,359
$154,581
93
5/17/2010
$39,754
$63,071
$99,835
$157,673
94
5/18/2010
$39,953
$63,701
$101,332
$160,826
95
5/19/2010
$40,153
$64,338
$102,852
$164,042
96
5/20/2010
$40,354
$64,982
$104,395
$167,323
97
5/21/2010
$40,555
$65,632
$105,961
$170,670
98
5/24/2010
$40,758
$66,288
$107,550
$174,083
99
5/25/2010
$40,962
$66,951
$109,164
$177,565
100
5/26/2010
$41,167
$67,620
$110,801
$181,116
101
5/27/2010
$41,373
$68,297
$112,463
$184,738
102
5/28/2010
$41,579
$68,980
$114,150
$188,433
103
6/1/2010
$41,787
$69,669
$115,862
$192,202
104
6/2/2010
$41,996
$70,366
$117,600
$196,046
105
6/3/2010
$42,206
$71,070
$119,364
$199,967
106
6/4/2010
$42,417
$71,780
$121,155
$203,966
107
6/7/2010
$42,629
$72,498
$122,972
$208,046
108
6/8/2010
$42,842
$73,223
$124,817
$212,206
109
6/9/2010
$43,057
$73,955
$126,689
$216,451
110
6/10/2010
$43,272
$74,695
$128,589
$220,780
111
6/11/2010
$43,488
$75,442
$130,518
$225,195
112
6/14/2010
$43,706
$76,196
$132,476
$229,699
113
6/15/2010
$43,924
$76,958
$134,463
$234,293
114
6/16/2010
$44,144
$77,728
$136,480
$238,979
115
6/17/2010
$44,365
$78,505
$138,527
$243,758
116
6/18/2010
$44,586
$79,290
$140,605
$248,634
117
6/21/2010
$44,809
$80,083
$142,714
$253,606
118
6/22/2010
$45,033
$80,884
$144,855
$258,678
119
6/23/2010
$45,259
$81,693
$147,028
$263,852
120
6/24/2010
$45,485
$82,510
$149,233
$269,129
121
6/25/2010
$45,712
$83,335
$151,472
$274,512
122
6/28/2010
$45,941
$84,168
$153,744
$280,002
123
6/29/2010
$46,171
$85,010
$156,050
$285,602
124
6/30/2010
$46,401
$85,860
$158,391
$291,314
125
7/1/2010
$46,633
$86,718
$160,766
$297,140
126
7/2/2010
$46,867
$87,586
$163,178
$303,083
127
7/6/2010
$47,101
$88,462
$165,626
$309,145
128
7/7/2010
$47,336
$89,346
$168,110
$315,328
129
7/8/2010
$47,573
$90,240
$170,632
$321,634
130
7/9/2010
$47,811
$91,142
$173,191
$328,067
131
7/12/2010
$48,050
$92,053
$175,789
$334,628
132
7/13/2010
$48,290
$92,974
$178,426
$341,321
133
7/14/2010
$48,532
$93,904
$181,102
$348,147
134
7/15/2010
$48,774
$94,843
$183,819
$355,110
135
7/16/2010
$49,018
$95,791
$186,576
$362,212
136
7/19/2010
$49,263
$96,749
$189,375
$369,457
137
7/20/2010
$49,510
$97,717
$192,215
$376,846
138
7/21/2010
$49,757
$98,694
$195,098
$384,383
139
7/22/2010
$50,006
$99,681
$198,025
$392,070
140
7/23/2010
$50,256
$100,677
$200,995
$399,912
141
7/26/2010
$50,507
$101,684
$204,010
$407,910
142
7/27/2010
$50,760
$102,701
$207,070
$416,068
143
7/28/2010
$51,014
$103,728
$210,176
$424,389
144
7/29/2010
$51,269
$104,765
$213,329
$432,877
145
7/30/2010
$51,525
$105,813
$216,529
$441,535
146
8/2/2010
$51,783
$106,871
$219,777
$450,365
147
8/3/2010
$52,042
$107,940
$223,074
$459,373
148
8/4/2010
$52,302
$109,019
$226,420
$468,560
149
8/5/2010
$52,563
$110,109
$229,816
$477,931
150
8/6/2010
$52,826
$111,211
$233,263
$487,490
151
8/9/2010
$53,090
$112,323
$236,762
$497,240
152
8/10/2010
$53,356
$113,446
$240,314
$507,185
153
8/11/2010
$53,623
$114,580
$243,918
$517,328
154
8/12/2010
$53,891
$115,726
$247,577
$527,675
155
8/13/2010
$54,160
$116,883
$251,291
$538,228
156
8/16/2010
$54,431
$118,052
$255,060
$548,993
157
8/17/2010
$54,703
$119,233
$258,886
$559,973
158
8/18/2010
$54,977
$120,425
$262,769
$571,172
159
8/19/2010
$55,251
$121,629
$266,711
$582,596
160
8/20/2010
$55,528
$122,846
$270,712
$594,248
161
8/23/2010
$55,805
$124,074
$274,772
$606,133
162
8/24/2010
$56,084
$125,315
$278,894
$618,255
163
8/25/2010
$56,365
$126,568
$283,077
$630,620
164
8/26/2010
$56,647
$127,834
$287,323
$643,233
165
8/27/2010
$56,930
$129,112
$291,633
$656,097
166
8/30/2010
$57,215
$130,403
$296,008
$669,219
167
8/31/2010
$57,501
$131,707
$300,448
$682,604
168
9/1/2010
$57,788
$133,024
$304,955
$696,256
169
9/2/2010
$58,077
$134,354
$309,529
$710,181
170
9/3/2010
$58,367
$135,698
$314,172
$724,385
171
9/7/2010
$58,659
$137,055
$318,884
$738,872
172
9/8/2010
$58,953
$138,426
$323,668
$753,650
173
9/9/2010
$59,247
$139,810
$328,523
$768,723
174
9/10/2010
$59,544
$141,208
$333,450
$784,097
175
9/13/2010
$59,841
$142,620
$338,452
$799,779
176
9/14/2010
$60,140
$144,046
$343,529
$815,775
177
9/15/2010
$60,441
$145,487
$348,682
$832,090
178
9/16/2010
$60,743
$146,942
$353,912
$848,732
179
9/17/2010
$61,047
$148,411
$359,221
$865,707
180
9/20/2010
$61,352
$149,895
$364,609
$883,021
181
9/21/2010
$61,659
$151,394
$370,078
$900,681
182
9/22/2010
$61,967
$152,908
$375,630
$918,695
183
9/23/2010
$62,277
$154,437
$381,264
$937,069
184
9/24/2010
$62,589
$155,981
$386,983
$955,810
185
9/27/2010
$62,902
$157,541
$392,788
$974,926
186
9/28/2010
$63,216
$159,117
$398,679
$994,425
187
9/29/2010
$63,532
$160,708
$404,660
$1,014,313
188
9/30/2010
$63,850
$162,315
$410,730
$1,034,600
189
10/1/2010
$64,169
$163,938
$416,890
$1,055,292
190
10/4/2010
$64,490
$165,577
$423,144
$1,076,397
191
10/5/2010
$64,812
$167,233
$429,491
$1,097,925
192
10/6/2010
$65,136
$168,905
$435,933
$1,119,884
193
10/7/2010
$65,462
$170,595
$442,472
$1,142,282
194
10/8/2010
$65,789
$172,300
$449,109
$1,165,127
195
10/11/2010
$66,118
$174,023
$455,846
$1,188,430
196
10/12/2010
$66,449
$175,764
$462,684
$1,212,198
197
10/13/2010
$66,781
$177,521
$469,624
$1,236,442
198
10/14/2010
$67,115
$179,297
$476,668
$1,261,171
199
10/15/2010
$67,451
$181,090
$483,818
$1,286,395
200
10/18/2010
$67,788
$182,900
$491,076
$1,312,122
201
10/19/2010
$68,127
$184,729
$498,442
$1,338,365
202
10/20/2010
$68,468
$186,577
$505,918
$1,365,132
203
10/21/2010
$68,810
$188,443
$513,507
$1,392,435
204
10/22/2010
$69,154
$190,327
$521,210
$1,420,284
205
10/25/2010
$69,500
$192,230