How to apply Rule of 72 in trading?

After released of the Rule of 72 article, few of the readers send me email and asking how to apply it in the trading?

The article mentioned about how many years to double your money with the specific rate of return. As such, we can apply the same to the trading.

If we set our each trade with 5% return, then you used 72 divided by 5%, you will get around 14.4.
It just simply means that you will trade 15 times with each time 5% return, your money will be double.

Refer to table below, if you only have 2 counter to trades and only trades 2 times per week, you will just need 7 trades to double your money. Is it tough?

In the past few articles, I wrote a few trades counter like Parkson, CCK-Wa and Ucrest. These three counter can be easily trades by achieving 5% each trades.

For example, CCK-Wa can be buy at 10 sen and sell at 10.5 sen. The return is exactly 5%. If you can sell at 11 sen, you are going to double money faster.

For Parkson, can buy at 25 sen and sell at 25.6. The return is 6%. Do you get the idea?