≈ 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.

Today’s line up

Rookie Corner

The Breakthrough Part III

I am guessing by the feedback that I received last week that this risk reduction concept is something worth exploring and dare I say mastering if one is to make the leap from padawan learner (Rookie in Star Wars talk) to Jedi Knight (Pro!) of trading.

Traders Lounge 11PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show Replay

If you missed last night’s episode where Coaches Mark Justice & Tyler Craig talked about the battle of the 200-day Moving Average or would like to watch it again, check it out here.

Mind of a Trader – Canadian Edition 7:30PM EST

Coach Greg Holmes, our very own Canadian, has expertise in analyzing both the Canadian and U.S. markets. With this unique perspective, Greg has an impactful webinar planned for our Canadian students helping them understand how to invest and trade both at home and the U.S. with some of the advantages and disadvantages of both. 

Tackle MasterMind Group 8:30PM EST

Join and learn how to better use the Covered Call System with the Tackle 25 with Coach Greg Holmes.

Halftime Report 12:30PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Market Recap

The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.

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:

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