Disliked{quote} Yes, you are wrong, you calculate it in this way: I have 500 pounds, I'm earning one year, withdraw all profits and start again with 500 pounds, but there's compounding and after new year you save all profits and trade with it. Open you windows calculator and raise 2,1385 to tenth power, after that multiply it by 500. You will see that it's about 1000000. P.S. However still my calculation is wrong due to taxes that you have to pay each year, but each country has own tax law, so I can't calculate it.Ignored
I just replied to Tim's message above. What you have said above is correct too, but what I said was the most simplest form of return on invested capital. We are both right in our calculation, but are making different points. I hope you see that. Have a great trading day!