What is a good percentage annual return for a day trader?

Discussion in 'Trading' started by mrmarket, Dec 1, 2003.

  1. cvds16

    cvds16

    a lot of daytraders just dont think in percentage terms when they evaluate their performance.
     
    #11     Dec 2, 2003
  2. I agree 100%
     
    #12     Dec 2, 2003
  3. omcate

    omcate

    If you put $5,000 in a brokerage account, the attached Microsoft Word document gives the account values for different returns compounded monthly.

    :D :D :D
    :p :p :p
     
    #13     Dec 2, 2003

  4. 2% per month? Is that all?? So why was everyone killing my system which easily outperforms that benchmark???
     
    #14     Dec 2, 2003
  5. cvds16

    cvds16

    also there is no such thing as an average daytrader, I personally know a guy who turned 50.000 euro into more then 25 M euro in the last seven years as a futures trader daytrading, others never seem to make any decent money.
     
    #15     Dec 2, 2003
  6. saxon

    saxon

    You might come up with a benchmark for yourself if you think of your gains as a "salary". For example, the "average" worker in the US making 100K a year, probably has a net worth of about 500K. So their work is bringing them a 20% annual return.

    That should probably be the minimum goal for a full-time trader. Otherwise, you might be better off investing your time in some other business.
     
    #16     Dec 2, 2003
  7. omcate

    omcate

    There was no euro seven years ago. You means USD, JPY, GBP, DEM, CHF, etc. ?

    :p
     
    #17     Dec 2, 2003
  8. Just as I figured......this was going to turn out to be another self promotion about (who'd of thought it?), Mrmarket.

    Yes, 2% a month is "all" it takes. Do the math.

    Is it enough to live on if you are trading a small account? No, it isn't. But that was not the question. Also why guys like me don't trade from home or trade our own accounts. Don't have the millions of dollars it takes to make it a viable vocation.

    But for you, who can and who does trade strictly on fundamentals, and holds your losers the way you do, your "system" is very suitable (assuming you have another source of income).

    You asked about "daytraders". From your 10 million posts about how "HUGE" you are, you give NO indication that you are a "daytrader".

    For real traders, it's all about buying power. If I had a 5k, or a 25k, account, I could not pay my bills if I made 10% a month. If I trade a $5mm+ account, and make 2% a month, and only get a 40% or 50% payout, I CAN pay my bills. With room to spare.

    Good luck finding anyone to fund your trading style with a significant amount of money. I know I would not. Nor would anyone I know of. Not for the kinds of deals guys like me work with.

    If you were to start a mutual fund, then maybe your "system" could work. But remember, you would not be getting the percentage of the profits guys like me get. You would be getting your percentage of the management fee. HUGE difference. I know you know the meaning of "HUGE".


    Peace,
    RS
     
    #18     Dec 2, 2003
  9. bebe

    bebe

    It is NOT just about your % return - equally important is the amount of risk you had taken to achieve those results! Actually it is VERY important! Don't dream about landing any significant institutional money if you have ever been down more than 6%. (So if you buy a stock at $30, then it drops to $10 then you ride and sell it at $33 - and you call it a nice 10% gain - this strategy will never work to convince any Big Money. They will not fund any "Hold and Prey" strategy).
     
    #19     Dec 2, 2003
  10. cvds16

    cvds16

    i made it a bit simpler for some people here it was NLG if you want to know
     
    #20     Dec 2, 2003