In the final analysis, I would think that the ROE (and any interim drawdowns in E) is "fairly" relevant. E being Equity, of course. Someone had better be minding the E.
ric, You may want to take a look at the following "Consistently Profitable Daytraders" thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=45222&highlight=DD Many have posted their expected and actual results on that thread. I target and typically achieve about ~7% per month. More during good months and less during the poor months. I posted my more detailed information on that thread at the following link: http://www.elitetrader.com/vb/showthread.php?s=&postid=685494&highlight=DD#post685494 Best of luck, -Eric
What you have to accept, is that there is no real answer to your question - there is no way of finding out that info which is confidential, and those who speculate about what those figures are will play mind games with you Trading is NOT a regular job, and the psychological discomfort that comes from the uncertainty is part of the price and as far as "I always see some site trying to get you to buy their course by quoting a high percentage of return then quoting how much that would turn into through compounding", goes being seen as "prey" by those who play on that uncertainty is ALSO part of the price you pay by doing this not saying you can or cant succeed - there is theoretically no limit to gains or losses just saying there is no way you can determine what can be made until you actually do it, at least with a small share size
hi ric I trade in very low priced penny stocks and in the first month I was up $ 14,000 and excited. After 4 months I not only lost the $ 14,000, but another $ 30,000 as well to learn the ropes. I`m one of those guys that jumps in, boots and all. Now I know the game quite well and I make at least $ 1,000 a week on a $ 40,000 account. But that will be the limit, because there is no room to up my size. That`s a nice income. but it wont make me rich. I`m now looking at trend trading equities, commodities and currencies. I`ll have a lot of study to do before I have my trading plan ready and this time I`ll take it more slowly. So you really got to put a lot of time into these things and evolve to make it hope this is any use
Thanks, nice to know someone is making a decent income besides the big boys, who have the mucho accounts. Before your reply all I heard or read about on this site was the big winnners or the big losers, didn't seem to be an inbetween. Which made it sound like all or nothing. Getting rich would be nice. But, I'm not really looking for that, I'm looking to build skill so I can always have steady income, wether that's a few hundred a month or much more will depend on my willingness to learn the ropes I suppose. In other words I'm looking to start a business of it, not put my money in and hope it pans out. Also, nice to hear someone who was self taught coming out ahead.
The reason I am posting sarcastic answers is because trading doesn't supply a constant source of income. For most traders the number is negative. For profitable traders there are huge swings in their returns. No one makes 10% a month every month. In one week you could make more than the rest of the year. Saying "I will start out with 100,000 and make 5%/month" and figure out how much you will have at the end of the year is ridiculous and missing the point.
% returns depends on so many factors. It is how much you have in your account. How much you are willing to risk etc etc. I was up 115% in 3 days. But, that doesn't mean I am a good trader. It only means that I was willing to take on a bit more risk, and that my account size was really small. I think % returns depends on what you want out of the market. It is there, all you have to do is get out there and grab it. The only drawback is you have to be willing to lose that much to make that return. The real return you can expect is: You get back as much as you were willing to lose.