2% daily compounded gives 5248% in a year

I made an excel sheet with some calculations, here's what I found.

If you have an initial capital of 650$, and if you earn 2% consistently on a daily basis compounded for a year (200 trading days), your return will be 5248%.

$650 @ 1% daily - 732% - $4731
$650 @ 2% daily - 5248% - $33940

Of course, the main problem is to consistently earn and making up of losses the next day.

 

nitpicking maybe, but: assume 220 trading days per year. Assume you leave all the money in the account.

1.02 to the 220th power is ~77 on my HP15C calculator.

 

Lol, and indeed.

 

Jeepers, why settle for so little? Somebody was suggeting 6%/day was really easy to do.

 

Short-changing yourself... 365 days, -104 weekend days -7 officially closed holidays = 254 trading days.

Compound more!

 

Compounding is the key to riches.

You might be able to average 2% a day during the dot com bubble, or during the crash of 2008 etc.

But most other years you will be very lucky to average 0.5% a day.

Ofcourse you can always try and leverage up gains, but the risk of blowing up increases to.

 

That's only 254% annual return. Shoot, any trader worth his salt should do that standing on his head, right?

Let's see a show of hands... Who has averaged less than 254% per year? Come on, we're all friends here. You can admit it... we promise not to sneer too much.

 

I understand the saracastic comments, was just trying to make a point.... Only one useful comment so far though..

Even at 0.5%, the return would be $1753 at 271%.

 

so how much do I need to compound daily to make this miserable 15-20% yearly ??

 

52 transactions and I'm only 12 % up for the year.. jeezes, I feel so small..

give up on all those big figures, the sooner the better