For a account with less than 200,000 in equity a return of 50% per-quarter or 300% per-year compounded is typical for a decent trader.
If you have any real examples of traders that are actually doing this well consistently, please have them pm me. I would be willing after verifying their statements to have them each trade 150k capital with 4-1 buying power where they can keep 75% of what they make and not have to take any of the losses. So please have them p.m. once you get in touch with these people who you know are making this. Thanks.
I see your point, but at the end of the day, money is money. If you had $5,000,000 and you were a day trader and you were using the entire $5,000,000, then your 2% return on capital per month would mean you would earn $100,000 per month or $1,200,000 per year. However, if you "invested" that with someone who picks great stocks, you could have easily made 40% on your money, or $2,000,000. So how is day trading better?
Simple Answer, Your return should be able to pay your bills, support your lifestlye and grow your savings for a rainy day. Therefore, because we all live differently from one person to another... our annual returns that is considered good should be differently from one trader to another. Think about it...lets say your making 100k per year but your expenses are 110k per year... Another trader makes only 25k per year and has no expenses, no debts and his/her cost of doing business as a trader is 1k per year... Who's doing better in reality...regardless to what type of trader/investor they are? Who is more likely to recover from a bad year of trading/investing? Simply...trading is a business...if it cannot support our lifestlye...we'll eventually be out of business... making the search for an ideal fixed number of annual return for all not that important. NihabaAshi
So if someone started with $200,000 in 1993 and made 300% per year, that would mean today they would have $11,809,800,000 and be one of the richest men on the planet. Impressive?...yes. Plausible? I have a hard time believing it. I'm still waiting for someone to give me a good answer.
No one can give a 40% return except the amazing mrmarket Daytrading is a job. Does it matter what anyone says? There is no answer that will be good enough for mrmarket.
Maybe I need to rephrase the question so it is easier to understand. If you had $500,000 in capital on January 1, 2003. How much capital would you need on December 31, 2003 to have called it a good year?
over 20,000 members in this forum daytrading feverishly and not one has an idea what a good year would be for them?? Has anyone ever heard of goal setting?