You are talking about something different (investing). Traders take a smaller amount of capital and earn a wage from it. So a talented trader might take $50k and over the course of a year working more than 40 hours per week, making thousands of trades over the course of the year, make a net profit of $60k. That $60k is not compounded. It pays for rent, food, beer.

Think of it this way:

How much can a trader make on a capital of $50k? Answer: $60k

How much can a trader make on a capital of $500k? Answer: $60k

Not literally, but hopefully that paints the picture.