The Effect of Compound Interest

In my last post, I mentioned the effect of compound interest. With the bank interest rate at a pathetic low of 0.2% P.A., some even at 0%, the amount of interest earned with deposits in the bank is so low that it can be considered as wasted deposit.

Why put your money in the bank? You should look at some other forms of investment that might reap higher returns for you. With conservative investment in mind, forex trading might just be the thing for you. Look at the table below. With just 2% interest per week, look at the returns after 52 weeks - Almost 180% return!

However, risk comes with every investment. It is just how we manage the risk. Read my last posting about Risk Management. I will cover in my next post about how we can cut loss if the trade goes against us and also how to take profit. How do we overcome the greed in us?