Compounding
Have you ever seen the TV show " Who Want's To Be A Millionaire"
? This is a good example of how compounding gains can turn a small stake into a huge sum.
Starting with a small stake of £100 contestants can double it up until
they reach £ one million.
You Can Do The Same!
However you do not want to risk our entire bank on one horse. Horses being
what they, are will not always oblige no matter how confident the trainer is of winning a
race. Therefore what you do is to place a small amount of your bank on each selection.
Remember this is a long term strategy.
How Much Can the Bank Grow By?
Say you have an initial bank of £1000. If you can increase your bank by
an average of 1% each day, do you know how much you would have at the end of the year?
Well using the mathematical formulae F=P(1+i)^n
where P is your starting bank, i is the daily increase as a percentage
and n is the number of days in a year and F is your final balance......F=
1000(1+0.01)^365 = £37,783 !
Remember all this through just 1% a day.
Looking at it longer term say your bank doubled once every year through
using our tipsters. Starting at £1000 at the end of ten years you would have over
£ one million in your bank!
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