View Single Post
  #18  
Old 10-15-2007, 03:48 PM
Mr. Now Mr. Now is offline
Senior Member
 
Join Date: Jun 2004
Location: The Present
Posts: 1,953
Default Re: How much money will i have after 3 years?

Simplify the problem with the Ruleof72.

Take 72 and divide by your return.

Take 72 and divide by 50% return.

Your money doubles in roughly: 1.44 years

Therefore your 8K is roughly 16 in about 15 months.

Do the same with your 500 deposits.

No one gets 50% consistently without huge volatility.

As a general rule, expect drawdowns equal to your return.

For example for a 35% return expect a 35% drawdown at some point during the 12-month measuring period.

If your return consistently and significantly beats your largest equity drawdown during the measuring period, you are very good.