Reasonable expectations for Trading

Discussion in 'Trading' started by John9999, Feb 27, 2018.

  1. John9999

    John9999

    not sure if I this topic has been discussed... but what do you feel is a realistic % return on investment per year from trading? 10%. 20%, 100%? what?

    And please if you are a successful trader put out what your real returns have been like.
     
    Last edited: Feb 27, 2018
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  2. %%
    Beating the DOW/DIA;
    after one learns to trade+ invest.Better than 10 %%. But since 80% don't beat the benchmark= SPY/S&P 500[average 12%]; buyer beware.:cool::cool: I don't factor in blowing up an account, since most are interested in a 10 year track record LOL:D
     
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  3. If you want "realistic" and average...then that's what you're going to generally get and expect from Miss Market, o_O

    Likewise, if you want to step out of the matrix norm from all the average bozo traders...you can equally do that as well,
    And that's when the fruits of your labor really explode out of the cornucopia,

    Watch Inside Man, 2006 Clive Owen, Denzel Washington movie.
    You have to kind of think like a bank robber, mixed in with a host of dynamic variables and elements. All while remaining completely calm and level-headed. You get in, and get out of the market. Cleanly, daily. With precision and business minded and focus.
     
    Last edited: Feb 27, 2018
  4. schweiz

    schweiz

    The best is to expect nothing.
    When I started trading I needed years to become consistently profitable. Start was very difficult, and after a few years I had no expectations beyond making a small profit. These expectations were based on my personal experiences.
    Once I was consistently profitable my expectation became more optimistic. But a few times I came to the conclusion that I would never make decent money. My experiences made me humble as I understood that the road would be long and difficult, without any guarantee that I would ever make decent money.
    After again a few years my real returns were far beyond my old expectations. In hindsight I cannot understand why it took me so long to get where I am now. Some periods I made no progress and some periods I went forward with giant steps. But having expectation I had already given up a long time before.

    Conclusion: your expectations will go up and down with the evolution and results 'of your trading skills. DonÂ’'t expect too much. Work hard and make a lot of hours. If not you can already put your expectations at zero.
     
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  5. truetype

    truetype

    You can search the archives. In similar threads, everyone on ET has attested to a Sharpe of 3- 6.
     
  6. John9999

    John9999

    I totally agree,,,,, otherwise I could just put my money into index funds and be done with it.... I think to be worth all the effort and frustration,,,, I would hope to eventually make premium over and above the major indexes, oherwise it just is not worth it...
     
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  7. schweiz

    schweiz

     
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  9. zhucap

    zhucap

    I broke even for 6 years trading different strategies to learn before I found my niche. Everyone is different. There's no "how much can I reasonably make" when it comes to the markets. I trade options so making 100% or more on my trades is possible. Harder to do so buying straight equities.

    Now it's not how much can I make.. I know I can make money with the strategies. It's how much I won't lose when I do lose (and losing is inevitable in trading).

    Hope this helps, good luck
     
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  10. I don't think a percentage this or a percentage that is the right angle to answer this question.

    Take a look at what the market offers instead. Lately, that's quite a lot. Other times, it's less.

    5 ES points using a $5000 deposit for day trading margin yields a return of 5 % on your capital. If you're bolder and want to use $3000 per contract, that's a return of 8 %.

    This is one day only. Over the course of a week, this is a return of 50/83 %. You can also compound your returns and add one contract each time your account size goes beyond your margin requirement per contract.

    Doing this - you can very quickly build a large account and you're looking at far, far more than some measly percentage return.

    Of course, this assumes that you're consistently profitable with little or zero drawdown. And that's what most people will never achieve.
     
    #10     Feb 27, 2018
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