DislikedOK, and as everyone here will agree, eventually one of the accounts will be too large to consistently return 2% a day. If this was your only point, fair enough, you're right-- no one will ever be able to return 2% a day forever; it's a pretty lame and transparent point at that, though, because we all live in the real world, and I tend to assume people argue from practical points of view instead of purely theoretical.Ignored
DislikedYour one and only fallacious mathematical argument ceases to exist if we assume people have to do real life things, have to live off the account and will be making regular withdrawals instead of the account just perpetually compounding forever and ever and ever without being touched <--- that is an entirely silly point to start your argument from, and I hope you agree.Ignored
In the real world, as you put it so nicely, most people actually look for a long-term investment and reinvest dividends, profits,... to compound their returns over the next decades to have nice retirement money. Of course their compounding growth is pretty slow.
Now traders who say they can achieve insane returns a day consistently are dumb to try to compound it? I don't think so, since millions of other people compound some of their money over their working life in a fund or whatever instrument.
It is silly to not try it, if you can do much better than the average in terms of percentage growth. Taking the 2% a day on a $ 1000 account example, you would be financially independent within 2 years. Now give me a good reason why people who can achieve such returns shouldn't try just to do that with some of their money.
Seems like everybody with realistic returns tries to compound their money and everybody with out-of-the-norm high returns finds reasons to not have to compound their money. Now that is really silly to me.
(And don't come up with the liquidity issue. I think up to a couple of million usd, there won't be a liquidity issue, so you theoretically can at least compound till a couple of millions of dollars)
Enough said.