Tackle Today: The Persistence of Time ⌛️ | Tackle Trading

≈ The wonders of Maths. ≈

I used to panic about mathematics. Ok, “used to” is wrong, I lie. I still panic. Palms sweating and all, I got the whole package.

I’ve recently discovered that there is something called “Mathematical anxiety”, the anxiety about one’s ability to do mathematics. Specialists can name it whatever way they see fit. I still call it panic.

However, mathematics as a way to pragmatically describe natural phenomena is a fascinating thing to me; it’s magical (although the palms keep sweating).

Let’s take a look at some numbers:

2^3 = 8
3^3 = 27
4^3 = 64
5^3 = 125
6^3 = 216

The wonders of “Power Functions” — same exponent for different bases.

3^2 = 9
3^3 = 27
3^4 = 81
3^5 = 243
3^6 = 729

The wonders of “Exponential Functions” — increasing exponents for the same base. Amazing how fast this thing grows.

A = P (1 + R)^X

This is the compounding interest formula. “R” is your investment’s rate of return, whereas “X” is time. By having time as the exponent we are submitting our investments to the wonders of Exponential Functions.

Traders focus too much on ROIs and forget time. So, instead of aiming for stratospheric returns in a short period of time, aim for the more realistic ones over a large time span and see what happens.

Elevate your returns to the power of time. Literally.

Chart of the Day: Power vs. Exponential

The chart above shows what happens when you elevate your returns to the power of time.

Video of the day: Exponential growth functions

No need to panic or sweat the palm of your hands. This short and sweet video will explain all you need to know about exponential growth.

Trading Justice Podcast Episode 308: Little Capital to Trade

Matt and Tim are joined by producer Mark to discuss a commonly asked question: How do I start if I don’t have a lot of money? There are many ideas thrown about, a discussion on our favorite books and products, as well as what NOT to do if you’re in this position. Listen to this episode on the player below:

Originally published at tackletrading.com on February 13, 2019.