Realistic returns expectations of successful day trading

Discussion in 'Professional Trading' started by helpme_please, Aug 28, 2019.

  1. Some truth in that.
     
    #41     Aug 29, 2019
  2. Realistic expectations....

    Years ago I came across some research on 40,000 money managers. Bottom Line... <.1% had returns greater than 30%/year for 10 years, audited. (Returns for money managers today are MUCH lower than then.)

    As a day-trader, you have the opportunity to do better than others... but you gotta be SHARP!!

    I recently read a story about some hedgie was going to raise his management fee to "3/30". That is, he gets a "3% management fee + 30% of the profits". (This is in contrast to the usual 2/20 they hedge fund industry has been getting for years. Some hedge funds have had to cut their fees to 1/10 just to keep disgruntled clients.)

    Interestingly, the 3/30 guy is commanding that because his results for the last few year were in the TEENS! Yes, TEENS... but he has outshined other hedgies so now is justifying a higher fee for his "superior" performance.

    Factor THAT into your "500% return dreams".

    FWIW...
     
    Last edited: Aug 29, 2019
    #42     Aug 29, 2019
    guru and easymon1 like this.
  3. easymon1

    easymon1

    The Expectation of your Trading System need not be a mystery
    expectancy.jpg

     
    #43     Aug 29, 2019
  4. bbpp

    bbpp

    The best trader is not in funds.
     
    #44     Aug 29, 2019
  5. When most professional money managers lose to cheap and simple passive stock indices, I find 50%, let alone 500%, consistent gain even among the best traders hard to believe.
     
    #45     Aug 29, 2019
    Metamega likes this.
  6. guru

    guru

    Last edited: Aug 29, 2019
    #46     Aug 29, 2019
  7. Factor THAT into your "average annual return".

    :)
     
    #47     Aug 29, 2019
  8. guru

    guru

    Right. While many traders love to show off the 100% they made on a $0.10 option, and talk about how easy it is to make 500%/year...
    (possibly they could make more money playing lottery)
     
    Last edited: Aug 29, 2019
    #48     Aug 29, 2019
    smallfil likes this.
  9. Right.

    If you're a trader/investor, what really matters is the total return on your capital/net worth.
     
    #49     Aug 29, 2019
  10. bbpp

    bbpp

    Can you think logically? If you can't, no point to argue with you.

    He hit lottery by lucky. Because it is a lump sum of money. If he accumulated 10 thousands small wins into 10 M, then that is not luck, but skill. Yet no one can do that on lottery.
    By comparison, the trader made his wealth by accumulating many small gains, that proves he did it by skill.
     
    Last edited: Aug 29, 2019
    #50     Aug 29, 2019