Yearly return... What should amateurs aim for?

Discussion in 'Economics' started by Debaser82, Feb 22, 2011.

  1. Any thoughts on this?

    Doesnt matter what you bought this last 2 years, be it sugar, oil, Amazon or Citi....

    If you held it for longer then a few months you are up more then 10% at the very minimum.

    Is this a realistic longer term return or are these special circumstances that should not be taken for granted at all...
  2. nLepwa


    Amateurs should aim for market return.

    2y is not long term.

  3. If you're returning in excess of your personal funding rate, you should be happy.
  4. unless you bought BORDERS it went bankrupt :D

    was (bgp)
  5. ammo


    break even would be great,your in the top 5%
  6. Don't aim for a "return," aim for $. Doubling a $5k account isn't that difficult; running around screaming of your 100% return will make you seem like a fool. Aim for $. As an amateur, it's unlikely you'll have lots of money, so you should aim first to learn and be able to break even... but when you do set a performance goal, it should be dollar (or EUR, etc.) base, not %.

    This applies ESPECIALLY to daytrading. I'm always repeating this message but many people simply don't comprehend.
  7. I believe the reason people aren’t listening to you is because simply put your wrong.
    If someone sets $ € targets then they get fixated with that amount and as the account grows they tend to have trouble increasing their target in accordance to the new account size , were as if there target is 1% of their account they will find it easier to adjust to new increased unrounded targets.

    All aside I don’t personally believe in setting targets, just take what you can and give nothing back to the market and don’t stop just because you have hit your target for the day , week, month or year.
  8. Amateurs 100% yearly.

    Professionals/highly experienced traders average 40% per annum for 12 years without compounded.

    If you compound 40% per annum for 12 years, your investment of $100,000 turns to 5,669,380 ($5.6 million) at the end of 12 years (magic).
  9. empee


    Wrong question. You should be asking how little can you lose. The winners will take care of themselves.

    If you put on a trade that makes 10% in a month, it could also lose 10% in a month (volatility). You might hit a winner with high vol that gives you a great return, but what matters is what your series of trades return over time.

    I would focus on just not blowing up; you will spend a lot of time thinking about how not to blow up with leveraged products like FX or futures, which will make you a infinitely wiser trader. Why? Because it makes you think about the risks you take, and what upside is realistically possible without losing everything. Ie if you have +100% years for 3 years and lose everything in year 4, were you successful?

    Spend time thinking about how much you could lose with your strategy; its a smarter way to play it.
  10. Aim for not losing money. If you can do that, You are already ahead of 90% of the other newbies.
    #10     Feb 22, 2011