The closer I get to the end of Q1, the more I think about what values I can accept in the margin of error to consider that they are within the tolerances. Given that I trade in foreign currency, the American dollar, I am not only affected by the downturns and upturns of the stock prices. My trade is also affected by brokerage and exchange fees.
These costs affect my purchasing power and thus my portfolio value. The percentage unit I set when calculating my future compound interest rate is below the actual percentage unit. Now I just have to decide what tolerance values I am willing to accept in the document that shows my future compound interest.
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