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Increase trading capital by including profit, not extra savings

Postby Yugocean » 17 Apr 2023, 10:30

The price of goods keeps on increasing, so if you do not increase the capital, whatever strategy you adopt, the necessary increase in profit will not be possible. Good capital is also necessary for a good strategy. But you need not to use your savings everytime for this. Include a part of your profit in the capital, do not use entire profit for your expenses. This will help you to continuously grow your capital.
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Re: Increase trading capital by including profit, not extra savings

Postby arunima » 17 Apr 2023, 11:27

That's a very wise decision. Our savings can not be all used for one thing. This will bring financial constraint, especially if there is a loss. Use a part of profit and keep some part again to invest to increase capital. One should always go for a diversified portfolio.
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Re: Increase trading capital by including profit, not extra savings

Postby Treborika » 17 Apr 2023, 14:07

I am a businessman. I have experienced in the business that you must add something to the capital of your business with time. This can help grow the business.
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Re: Increase trading capital by including profit, not extra savings

Postby nela13 » 17 Apr 2023, 15:22

That's the power of compound interest, if you don't use the profit and leave it in savings it will earn interest, it's a snowball, always growing but in our favor.
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Re: Increase trading capital by including profit, not extra savings

Postby augusta » 18 Apr 2023, 15:11

This is more about reinvesting your profit and not your savings. This is interesting it can lead to making more profit and expanding the business
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Re: Increase trading capital by including profit, not extra savings

Postby nuella » 31 Jul 2023, 10:00

Don't fund your trading portfolio with extra personal income. If it is worth it, let is generate profits to expand itself.
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Re: Increase trading capital by including profit, not extra savings

Postby augusta » 31 Jul 2023, 11:17

nuella wrote:Don't fund your trading portfolio with extra personal income. If it is worth it, let is generate profits to expand itself.


Yes , you need to be using more of profit if you want to fund future investment to save your money that was already set aside as savings
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Re: Increase trading capital by including profit, not extra savings

Postby GoldenLady » 31 Jul 2023, 11:39

This is the best strategy to grow a business capital-wise. It's far better than borrowing money, and it helps you to he more accountable to the business.
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