View Full Version : 72 RULE

Yousuf Ali
05-01-2014, 01:58 AM
The 72 Rule is a great mental math shortcut to estimate how long will it take to double a certain amount of money at a given fixed annual rate of interest. It can be used for several financial estimates.

For example, the rule of 72 states that at 6% interest, your money takes 72/6 or 12 years to double. Starting with a specific time horizon, let's say 10 years, in order to double your money you need an interest rate of 72/10 or 7.2%. A country growing at 3% a year, doubles its economy in 72/3 or 24 years. Inflation estimates can also calculates, for example, if inflation rates go from 2% to 3%, money will lose half its value in 36 or 24 years.

03-04-2015, 01:42 PM
Everything in this world has its rule. Included forex online trading. The trader must obey the rule if he/she want to have his financial goal. I think the trader will lose his/her money if he/she does not pay his/her attention to the rule. In this case, we as trader must say thanks for the founder of the rule or I mean the owner the rule idea. It is like a basic principle.

04-28-2016, 10:48 AM
One more rule should sound as "to find a broker with no requotes". Fortunately, many brokers start cancelling them. At least, I know that Forex did it for sure.

10-30-2018, 04:40 PM
I understand this rule, but it seems too complicated for a Forex Trader. You see, I like being versatile and I want to grap profit from all angle. I do know it is okay to stick to the money management rule, but I don't always apply it when I an 90% sure of the trade. Call it stupid, but I prefer taking high risks, only when am sure it is worth it.

05-20-2019, 05:47 AM
Ok. I understand this all rule. But i think its all are very old.

05-25-2020, 02:14 AM
These are good questions and the trader that will ask himself these question will be able to prepare himself well for successful trading because he will not hurry to trading but he will take his time in analysis of the market to determine his stop and his targets that he wants to reach, the trader that takes good time in analysis of the market will be able to know how to determine the major direction and the trend and will be able to determine the entry positions and so he will make right trades that will lead to making of money, the good trader always calculate each step before doing of it and calculate the winning and the risk and then decide what he will do because he knows that making of mistakes will lead to loses always.

07-14-2020, 09:21 PM
Yes everything in the world has certain rules and even for trading we have to act within the boundaries of these rules. A better word for these rules is a plan and the importance of a plan is stressed everywhere be it for Forex trading or any other business. When we trade Forex with a no rule approach, the chances of us making profits is almost nil while the losses are certain. We should remember Forex is a business and a lot of mind work goes behind earning profits here, the mind work is for planning, framing strategies and trading system.

01-12-2021, 11:53 AM
The idea is certainly interesting, as for me, but does it really work that way?

FXOpen Trader
09-20-2021, 01:16 PM
The idea is certainly interesting, as for me, but does it really work that way?

We will need to use and also follow the trading rules in the markets first.