Right, I understand the theory of compound interesting. A stock goes up by 10% and then the next year that same stock goes up by 8% that gain from the first year is also going up by 8%. But say in a S&S ISA. I invest a certain amount every month and am not looking to sell. Surely because I hadn’t sold, the unrealised profit doesn’t get that compounding because I haven’t reinvested it??
Hopefully that makes sense, but can someone explain that to me because I’m struggling to understand it. Thank you!