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Thursday, August 25, 2022
First Annual IBD National Meetup
IBD held a 3 hour Virtual Meetup online on Saturday August 20th at 11.30 am.
It was one of the most informative and Educational IBD Meetup that I had the pleasure of attending. Over 500 members from all over the country and overseas took advantage of hearing from some of the most successful traders and investors. IBD had recorded this 3 hour session and provided all the attendees with the recording of the session. I am taking the liberty of sending all the members the link to the recording. I have already watched it once again and plan to keep this recording on file for me to refer back to it every so often.
When asked to name the greatest invention in human history, Albert Einstein simply replied “compound interest.”
Albert Einstein is also credited with saying: “Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
Compound interest or compounded returns is when your money makes money on previous returns or earns interest on interest. The compound interest formula is calculated by multiplying the principal amount by one plus the annual interest rate by the power of the number of periods the capital will be compounding at to get a total figure for both the principal and what accrues through compound interest. Subtract the principal if you just want the compound interest results.
Here is the exact compound interest formula that can used for calculating it:
Formula answer key: A = Final amount P = Initial principal balance r = Interest rate n = Number of times interest applied per time period t = Number of time periods elapsed
Here is the rate of compounding on capital based on annual return rate:
Years it takes capital to double based on annual growth rate
Here is the compounded returns when you double a penny for 30 days:
What you have after you double a penny for 30 days.
One of the most powerful thing you can do is grow capital by compounding it year over year and allowing it to grow to astounding levels.
Almost 7 years ago we at "Investorspotlight" started on a journey to empower Retail traders and investors to take control of their financial future. We developed a Mentoring/Coaching program to take the mystery out of trading and investing in the stock market. We got involved with the IBD (Investors Business Daily) Meetup group in the local Tampa Bay area to share our methodology with the local investors and traders. In the process we learnt and solidified our own understandings of the IBD CANSLIM system. Follow me on tweeter @ "spotlightamin" where I tweet daily on stocks of interest and stock market content that I find worth reading.
Here is a short video that we developed 7 years ago to briefly highlight our minimum criteria for selecting Growth Stocks and establishing loss and profit targets for each of the stocks we take a position on. We have fine tuned our system over the last several years but our foundation is highlighted in this short video. We are hoping you will review it and comment on it and give us the feed back. We hope you benefit from our expertise and over 25 years that we have spent trading and investing in Growth Stocks.
Investors Business Daily (IBD) system of investing and trading growth stocks can result in attaning gains of 2 to 2 and 1/2 times better than the general market - utilizing the performance of the $SPY as a proxy for the performance of the general market. Here is an excellent video by Richard Moglen who goes into the details of the highlights of IBD system of trading growth stocks.
Review it on a regular basis to keep you grounded to the system. We have been in a bullish trend since February of 2016 with minor pull backs of 3% to 8% along the way. That is perfectly normal and something every growth stock investors looks for. Minor corrections helps shake out the weak holders of stocks. It also helps set up new bases for stocks to take a breather and set up for the next move higher.
August and September months are traditionally some of our weakest months in the market. It's hard to make progress with your portfolio when the market is volatile as it has been for the last couple of weeks. Don't be dismayed though. Observe the strict rules of mitigating risk and dispose of stocks that are not making much progress. It's best to conserve CASH right now and harvest partial profits in stocks that have attained gains of +20% to +25%. Our best months in the market tends to be between November through April. History suggests that if the market is up the first 6 months of the year, than the latter 1/2 of the year will also have a positive performance. Have the CASH available in your account to take the advantage of rally in the Fall.
