Compound Returns

Suppose you invest $10,000 into Gregory’s Tequila Company
Ticker Symbol: WORM
The first year, the shares rises 20%
Your investment is now worth $12,000
Based on good performance and incredible management, you hold the stock
In Year 2, the shares appreciate another 20%
Therefore, your $12,000 grows to $14,400
Rather than your shares appreciating an additional $2,000 (20%)  like they did in the first year, they appreciate an additional $400, because the $20,000 you gained in the first year grew by 20% too!
If you extrapolate the process out, the numbers can start to get very big as your previous earnings start to provide returns
In fact, $10,000 invested at 20% annually for 25 years would grow to nearly $1,000,000
And that's without adding any money to the investment!

Scenario #1
You have $5,000 starting capital
If you can add $5,000 per year for the next 20 years
Total of your funds invested: $105,000
Compounded at 20% annual return
You would have $1,300,000
Scenario #2
$10,000 starting capital
Add $5,000 per year for the next 20 years
Total of your funds invested: $110,000
Compounded at 25% annual return
You would have over $3,000,000
Scenario #3
$20,000 starting capital
Add $10,000 per year for the next 30 years
Total of your funds invested: $320,000
Compounded at 25% annual return
You would have over $56,000,000

It takes some money to invest
It takes knowledge to get better returns
It takes time to compound
It takes patience!!!

All numbers below are hypothetical (expectations)
Swing stock trades (2-8 days in duration)
Expected returns for each type of stock traded:

Low risk stock trade expected return: +1% to +2%
Medium risk stock trade expected return: +2 to +4%
High risk stock trade expected return: +3 to +7%
Some will grow to become double digit performers!

Position stock trades (2-8 weeks in duration)
Expected returns for each type of stock traded:

Low risk stock trade expected return: +2 to +5%
Medium risk stock trade expected return: +5 to +10%
High risk stock trade expected return: +10 to +20%
Some will grow to become +20% performers!

Expected returns for each type of option traded:
Long Calls & Puts: Average return 20-50% of capital placed into the trade
Covered Call or Naked Put: Average return 5-15% of capital placed into the trade
Collar (Conversion): Average return 30% of capital placed into the trade
Calendar or Diagonal Spread: Average return 30% of money placed into the spread trade
Straddle or Strangle: Average return 30% of money placed into the spread trade
Butterfly or Iron Condor: Average return 50% of capital placed into the trade
Risk Reversal: Average return 30% of money placed into the spread trade
Vertical Spread: Average return 20-50% of capital placed into the trade