Be Careful With Your Profit Calculations

I’ve been guilty when I was a beginner trader and investor. I would get out my calculator and start typing in numbers to figure out just how much money I could make on an investment or shorter term trade. There were times where the numbers were insane! I would have to double check the calculations to make sure I did them right, and I did. Well… kind of! This is where the topic of our video comes into play. When you are just getting started as a trader and investor and doing your profit calculations, the equations can be right; however, the number you see is wrong. While I realize this sounds like a contradiction at this point, please give me a chance to explain how this can be true. Making money in the financial markets does require basic math and calculations, but there is still a bit more that needs to be factored in, so that’s what I want to focus on here. I don’t want you to mislead yourself! Let me show you what I mean!