Racetracks and casinos are the proper venues for those that think in terms of 500% per year ... not markets. I'm in favor of shooting for the moon but you can't shoot for Neptune. Trading aggressively and aiming for 8 or 10% a month (and realizing you will fall short much of the time) is not crazy. But thinking in terms of 40% a month and acting as if that is real world doesn't work.
You guys are in a different world. If you've worked in a prop firm before, you would realize that 1% a month is just silly. 1%/day is what is expected. If you're trading an account actively with the hope to achieve only 12%/yr, you're wasting your time. After accounting for the income tax on an actively traded account you're down to about 9%. Better to get a real job, and just invest your savings for the long run in a growth portfolio. As I grow my account, the most effective approach I have found is to shoot for the 1%/day and then withdraw most of that, leaving behind only a gradual growth in the traded capital. So, if you start with $10,000, shoot for $100 or more that day, and then withdraw $90. An experienced trader can grab $100/day out of $10,000. It really isn't that hard. However, if you leave that money in and allow it to compound at a rate of 1%/day, you will soon lose your profits.
^^^ finally get a voice of reason here. Those that trade a 500k account can think in 25 -40% returns per year. But how many people on ET trade an account like that? Most of ET doesnt even have 25k to daytrade a retail account. if you are trading a 10-20k account with 20:1 leverage, I think 20-50% a month is a reasonable. * of course I have no idea what I am talking about*
In fact, the expectation at the prop firm for graduation to next stage was 1%/day on only $10,000. NO leverage. Only a few accomplished this goal, but it was doable. As is true in the general economy, its all about the velocity of that money - how often its used.
+1 The individual and collective mind of ET just doesn't get it. It's just a waste of time to explain it. As you've said most of ET don't or can't qualify as PDT. Shit, one persona here talks about 4% per month; A doubling every 2 years or so. As a futures-only trader myself, with a relatively and intentional small-dick account, 4% per day is much more realistic. Of course, I actually make withdraws regularly so I can eat and pay bills, therefore my account doubling is calculated differently. LOL! For all the small thinkers, a little ditty... http://www.bloomberg.com/news/2014-01-02/are-all-traders-useless-morons-.html
I *think* you are directing the question to me. If not my apologies. I traded my first futures contract in the the early 90's. I've been trading futures full-time, as an independent trader since 2004, 10 years.
Guys ... the OP talked about trading a retail account not prop. Prop gives him more tools, access to a much wider range of techniques and access to captal beyond his 100K. How many straight retail traders can do 1% a day consistently? My guess is very few. Even after hearing your cases I think 8 or 10% a month is a much more realistic (yet still aggressive) goal for the OP and others trading retail. Let's also keep in mind he is actually doing 4% a month. Doubling that might not be so easy.
I'm curious about what Maverick thinks of the numbers in this thread. Also curious about what Ammo and Zdreg think of the numbers tossed around both on the low and high side. I agree that anyone looking for 1% a month is viewing it all wrong and I don't care what hedge funds do. How much 9 to 5 time can a guy spend to do a number like that unless he can commit seven figures?