If you took a penny on the first day of the month and doubled it every day for that month (all 30 days), how much would you end up at the end of the month? One cent, two cents, four cents, eight cents…. but at the end of day thirty you end up with $5,368,709.12! Surprised? This is the power of compounding money over and over for staggering returns. This also shows how much money some traders on social media would quickly have if they were as good as they pretend to be. This also explains this quote from Jesse Livermore:
“If a man didn’t make mistakes, he‘d own the world in a month. But if he didn’t profit by his mistakes, he wouldn’t own a blessed thing.” ~ Jesse Livermore
Chart Of A Penny Doubling Each Day
If you’re curious to see what that looks like, here is a chart that shows the math of a penny doubling each day. This is the real power of compound interest! As you notice, the growth really starts accelerating around day 22. You don’t even get past $100 until Day 15!
|
Day |
Value |
|---|---|
|
1 |
$0.01 |
|
2 |
$0.02 |
|
3 |
$0.04 |
|
4 |
$0.08 |
|
5 |
$0.16 |
|
6 |
$0.32 |
|
7 |
$0.64 |
|
8 |
$1.28 |
|
9 |
$2.56 |
|
10 |
$5.12 |
|
11 |
$10.24 |
|
12 |
$20.48 |
|
13 |
$40.96 |
|
14 |
$81.92 |
|
15 |
$163.84 |
|
16 |
$327.68 |
|
17 |
$655.36 |
|
18 |
$1,310.72 |
|
19 |
$2,621.44 |
|
20 |
$5,242.88 |
|
21 |
$10,485.76 |
|
22 |
$20,971.52 |
|
23 |
$41,943.04 |
|
24 |
$83,886.08 |
|
25 |
$167,772.16 |
|
26 |
$335,544.32 |
|
27 |
$671,088.64 |
|
28 |
$1,342,177.28 |
|
29 |
$2,684,354.56 |
|
30 |
$5,368,709.12 |