Returns on Trading Capital

Discussion in 'Trading' started by blueem, Aug 6, 2001.

  1. blueem


    I would be interested to know what type of annualized returns other traders are generating on their trading capital.

    In much of my reading, an annual return in excess of 25% is derided as wishful thinking.

    On the other hand, taking one point a day out of a high-volatility stock like NVDA (provided this is possible) would lead to a doubling of trading capital in about four months.

    I would like to know what a reasonable expectation is in the REAL world (circa 2001).
  2. On a short term run you can play fast and make 10-20K into
    a much bigger sum. In futures you can parlay even nicer
    numbers with some careful pyramiding. The bottom line it's
    not sustainable for a long haul !!! This is a statistical fact !!! Average 25-35% is nice and it's great if you can
    make that last. You suppose to play a different game with
    20k FU money that you don't need to feed your family or
    a my 350k net worth !!!! I am sure many will jump on this
    here and will refute me with out even looking into the stats. but take my word statistics don't lie, casinos use
    them Uncal Sam use them even Greespan uses them.
    Also stats say that junk bonds are best omg term asset class
    for risk/reward
    ---------junk bonds---------------------------------------
    STHYBX has 30 day SEC yield over 13% and even strong short term high yield (STHBX) is well over 8%.
    Of course, these rates will come down if overall junk bond market improves..... and the underlying value .... I recall several years ago these funds (and MAS especially) making 20% in a quarter....

    Hope this isn't another false start.... (say, if CSCO sends nasdaq & telco down again) but the yields alone are getting tempting.... (esp. for funds languishing in money markets)

  3. andrasm --- please "preview reply" before submission.

    1) correct mis-spells
    2) slow down, whatever anyone has to say is not that "time urgent" that one can't properly SPELL OUT one's words correctly, so that your intent is conveyed
    3) explain "terms" in parenthesis, don't assume that we all understand

    So, what were you trying to say, in 3 bullets/conversions or less?