Trading for a living....full time....only income

Discussion in 'Trading' started by catcando, Jul 5, 2002.

  1. Pkay

    Pkay

    Not to decry your skill level but, if you started almost 40 years ago, would the massive growth of your fund be mainly attributable to that 8th wonder of the world - compounding? Or is it due to large annual returns?

    What would you estimate your CAGR to be if you don't mind me asking?

    I'm sure that most of us here could learn a few things from you.

    Many thanks.
     
    #201     Dec 15, 2018
  2. ironchef

    ironchef

    Do the math, putting $25 a month, every month for 40 years, compounding every year assuming market return (7%) will get you $64,000.

    If I am more generous and assume a 9% compounding, you will reach $110,000 in 40 years.

    OK, I put in an equivalent of inflation adjusted $25 a month, after 40 years, at 9% compounding I am looking at $153,000.

    So IMHO, gnome is the real deal.
     
    #202     Dec 15, 2018
  3. Pkay

    Pkay

    Yes, compounding is amazing but @gnome said that their account stands at $10 million which is a very long way from just $153,000. So the CAGR must be pretty high. Either that or they invested more than the initial start of $25 a month.

    Also, this sort of investment style suits a youngster just starting out and they have the benefit of time and compounding to build their accounts. They can afford a much more passive approach and a much lower annual return if they are looking to retire at 60.

    However a 40 year old looking to retire at 60 will need to adopt a much more aggressive investment style to get similar returns to a 20 year old. This is because they will have missed out on the power of compounding that the younger person gets.
     
    #203     Jan 2, 2019
  4. ironchef

    ironchef

    A CAGR of ~25%, (which is not unreasonable for someone with a real edge) would get there for him.

    If you only have 25 years, you will still end up with a nice chunk: ~$400K.
     
    #204     Feb 2, 2019
  5. Andras

    Andras

    I may not have my own family yet, but I pay bills every now and then and I must tell you forex has proved helpful. I started poorly though but never gave up and gradually things started falling into place.
    Am about everything related to forex, I put my nest everywhere in the market, that's how I get by.
     
    #205     Feb 2, 2019
  6. If trading options weekly what is tax rate? Based on income taxes or capital gain?
     
    #206     Aug 31, 2020