I didn't do well in March as I had losses in oil, gold, and company earnings. I plan to trade more conservatively until I start making profits...
Interesting! BTW, how is the tax rate(=Expense/ProfitBeforeTax), for the last 4 years? Most cases, 30% or 40% depending your personal tax bracket in 1040.
Corrected for you, but only cause im bored. Read the correction carefully. Think about it. Hint: amount of money
We have a case of good news bad news I feel. The bad news is almost all traders fail, either losing all their money in most cases or underperforming the market. The good news is, the 1% of successful traders are all at elitetrader so we can learn from them. Warren Buffet's 21% per year long term track record looked great until I started looking at the returns generated here. Looking forward to a great learning experience.
If I were you, I am going to calculate all the commission for the 4(?) years, as well as tax for the trading. Of course 2014 and 2015 tax are to be estimated. In case that profit after tax is 100K and all the expense(commission and tax) is 50K, then the tax rate is 50/(100+50)=33.3%. Furthermore, how often do you trade? Suppose you have 50K first day every month overall for 4 years and you trade the amount of 150K (3 times of initial seed of 50K), then "3" is the number how you often trade.
Yes, I have seen some great traders here at elitetrader like sellingvol (not an exact id). I'm still a newbie compared to them. In the past, I have met some good traders who retired and managed their own funds. One thing I learned from them was that they had many "simple" strategies that anyone could do the same. For example, I've seen a trader who just buys OTM call options on low PE stocks in blue chips on regular basis like buying a lottery ticket. The strategy itself can be very volatile and yet he was hitting double digits every year.
Suppose intrinsic performance of Univers is continued. What will be the annual return rate and return amount after 10 years and 20 years?
probably in double digits? =) I wonder how others do - I think there are many traders at elitetraders that generate much higher return than what I have.