James J58 Miller

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What is compounding in forex trading?

Compounding is the process of reinvesting profits to grow account equity exponentially over time. For example, a trader earning 5% per month can double an account in less than two years with compounding. While powerful, compounding only works with consistent profitability and strict risk control. Overleveraging or emotional trading can break compounding benefits. Traders should focus on steady growth, not shortcuts, to maximize compounding potentia