for small account: 50K, what is the reasonable return?

Discussion in 'Trading' started by pocoyo2014, Apr 15, 2014.

  1. wrbtrader

    wrbtrader

    This is a "trader" forum. Therefore, I'll assume you know that and that you're not talking about investing.

    1) You should spend more time with the guy "you know" that grew his account from 20k to 20 million in 10 years. If you really don't know him...you shouldn't mention him as if you're using him as a gauge.

    Seriously, so many folks walk around saying they "know" a extremely profitable trader while at the same time they're not smart enough to do whatever it takes to hang out with that trader (in person) so that they can learn whatever it is that he/she is doing to consistently make so much money.

    2) You should stay away from trading because I don't think you realize that most traders lose their money.

    3) If you're serious about trading, go find a successful trader (in person) and then watch him/her trade in person for a long period of time (if the trader allow such). Next, then ask that trader your question instead of getting replies from online from folks you "don't know".
     
    #11     Apr 16, 2014
  2. Butterball

    Butterball

    Reasonable return, consistently? Anywhere from 5-20%, depending on your acceptance of draw-downs and account volatility.

    Those who reply 100-200%+ are clueless since their ROI goal implies a probability of blowing up that is significantly closer to 1.00 than 0.00.
     
    #12     Apr 16, 2014


  3. http://www.powerful-psychic-reading.com/the-human-mind.html


    There are those among us that possess mysterious psychic abilities, or edges as they are known within some industries.
     
    #13     Apr 16, 2014
  4. Crispy

    Crispy

    Organic growth is never this linear. Yeah its possible. But highly improbable.

    To the OP - Only you can answer that question based on your systems typical return.
     
    #14     Apr 16, 2014
  5. #15     Apr 16, 2014
  6. ras72

    ras72

    Forex is more fun.
    66% trimester base failure rate. 98% lose annually.
    If you can make better than that you are good.
    The longer the reference time frame, the higher the failure rate.
    Thousand fold increase in ten years is 5.9% monthly return average.
    You'd probably be one in a billion.
    Good luck.

    -ras72
     
    #16     Apr 16, 2014
  7. My calculation yields 41% for CAR. A 41% CAR is not sustainable in this universe. Extreme outlier. Possible something else involved...
     
    #17     Apr 16, 2014
  8. If you mean compounded annual rate, his return is more like 99.53% Annually. I think he just punched 20K into a calculator and doubled 10 times. :) Not a reasonable way to plan your rate of return for sure : )

    Like I said very unlikely... you could sell .30 Delta SPX puts for 0.8% to 1% monthly rate of return with a 70% probability of success; however, to get his 5.93% monthly return requires selling .98 Delta puts with a 2% probability of success, and 98% probability of FAILURE.
     
    #18     Apr 16, 2014
  9. Correct, I used 20 years, not 10. It's 99.53% CAR. Good example with options.
     
    #19     Apr 16, 2014
  10. Organic growth is never linear.

    There is also another myth that revolves around 10,000 hours.

    The OP said something about being reasonable.

    You are using the word typical... ho hum....
     
    #20     Apr 16, 2014