The Compounding Effect of Success

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I would like to offer a brief explanation of the compounding effect of successful trading.  My hope is that you will find this post psychologically helpful, encouraging and maybe even influential on your current trading practices.
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The most important foundation for achieving an incredible trading record, and the most difficult period of time, is the beginning time period of your track record.  If one can carefully manage their initial trade profitability, it gets much easier to be 'wildly successful' thereafter.  Let me show you how this is true.
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Let's say you begin your annual trading record with $1,000 and a goal of achieving a 400% return for the year.  The goal then is to turn $1,000 into $5,000 in 12 months.  A couple of years ago I began, more or less, this very way and what I learned and experienced taught me an important lesson I hope to make your lesson, as well.
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If you are absolutely committed to this goal, you will be ruthless about accepting large losses.  Either you decide with yourself that you will get out of a position once it begins to go against you, so as to minimize your loss, or you decide that you will not accept a loss and commit yourself to patiently wait to take a gain.  In the beginning, there are no other options that will result in your success.
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Getting from $1,000 to $1,100 - the first 10% portfolio gain - is the most difficult 10% of the entire 400% goal.  Whether it takes you a day, a week, a month or several months to achieve this, you must get this first 10% and guard it with jealousy.  Do NOT allow it to be taken away from you.  It is, after all, the precious foundation of your trading record.
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Assuming you make it to $1100, now it only takes a 9% gain on $1100 to reach the next benchmark - a 20% gain on $1,000, or $1,200.
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You have heard the old saying, 'it takes money, to make money'.  Well, it is true!  That is because the compounding effect of success makes it increasingly easier to make more money. As you break each little milestone - the first 10%, the second 10%, the third 10% and so on - you do so having more money - each step of the way - to make money.  In reality, it get's easier to make more money as you succeed.
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To carry this just a bit further, let's say it takes you 6 months to achieve a 50% gain in your portfolio value...... i.e. you now have an account value of $1,500.  To reach a $2,000 portfolio value it will take a gain of $500 additional.  But now you are in the market using $1,500, instead of the $1,000 as when you began.  Instead of needing a second 50% gain, you just need a 33% gain of $1,500 to make it to the $2,000 mark.
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Once you achieve a 100% portfolio gain, the next 100% - making it to 200% - is twice as easy as in the beginning because you work with twice as much money.  The next 100%, bringing you to 300% is easier yet, and finally the last 100% taking you to 400% is the easiest 100% of them all.  
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To apply all this to my personal current situation, here is what my trading record is on pace to achieve since beginning my trading record and this blog on June 11th, 2010:
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3 months - 50% gain in portfolio account balance
4.5 months - 100% gain
6.25 months - 200% gain
9 months - 400% gain
12 months - 600+ % gain (June 11th, 2011)
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Whether I achieve this or not is not particularly important to me.  I have made this 600% gain in as little as 7 months before, so making it in 12 months would be nice but not a personal milestone.  What is important to me is that I do my best with the opportunity I have.  And as I have mentioned before, I compete with myself, no one else.  
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If you have read this far, I hope you leave this discussion with a new appreciation for how important it is to appreciate the smallest of your successes.  I sincerely believe that a carefully constructed foundation is what you need to build your success upon - and that you can do it - if only you will patiently honor its critical importance and nurture it with great care.