For how many is a steady 20%/yr growth target enough?

Discussion in 'Trading' started by James Connor, Oct 3, 2014.

How many are interested in a steady growth 20%/yr target?

  1. No, 20%/yr is not enough.

    8 vote(s)
    57.1%
  2. Yes, at least some of my investments (will) use this approach.

    6 vote(s)
    42.9%
  1. How many of you ETers are planning on or already growing your investments at 20% / year? It that enough for you or are you only interested in 40%+/yr returns from short-term trading? Please answer the poll question.
     
  2. I wouldn't turn down 20%, but I wouldn't stop looking for better things either. With enough leverage, you may only need to make 5-10% with low risk before leverage and it can turn into something reasonable.
     
  3. Al_Bundy

    Al_Bundy

    I think that 20%/yr growth would be great as an average over 10+ years.
     
  4. xandman

    xandman

    I think more value can be derived from your target by specifying the volatility you expect with a given return.

    For example for 20% I would expect 2% but for 36% I would tolerate 5%. Retail traders want total return while pro money managers will go for the highest sharpe.

    And yes, leverage can be used as a multiplier if you have a stable sharpe.
     
  5. Handle123

    Handle123

    20% is outstanding, but only trading Dividend stocks so I can get 5-15% extra, most forget about only trading these types of stocks long term.
     
  6. I think a long term annualized return of 20%/yr is nothing to sniff at. I generally shoot for around 30%, sometimes get 40% and other times sub-30%. But if someone would do my trading for me and give me 20%, I may well take them up on their offer!
     
  7. cornix

    cornix

    Provided such a return is combined with low risk and high liquidity it's good.