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Thanks for that. There is risk he says as its day trading but he exercises sound risk management and has only had a few small negative months. What do traders go by, return on equity or return on assets? He goes by return on capital in his account.

Its return on his total funds in his trading account which I have viewed and trust is correct. He has been trading independantly for just over 3 full years now with 48% being the average year. Im not totally ignorant so I know what I could acheive with a term deposit or some either kind of...

Although most responses were thorough and genuine I am still confused and as suspected no real straight answers. Keeping it simple I just want to know if I give this guy some doh to daytrade with should I be happy with his returns of 48% pa or are there funds or other things that can offer me...

Thanks for the replies, however looks like I might need to clarify. His trading capital is approx 200K of which the value comes to 400K when margin is added, do traders calculate using capital at risk or total margin at risk?

Hi, I know a guy who has been trading his own money for a few years now, he day trades commodities/futures with claims of 4% a month ROI equating to 48% a year !! With margin he can make twice that. Im confused because Ive read and heard that some of the best traders make 20% per year day...

Very true and I like the 2 accounts idea. Now you got me thinking maybe the second account for smaller trades that expire worthless, like protection. That way it could be an account in say my partners name that would reduce her taxable income. :D

thanks for the info spindr0, is tempting but have taken a liking to TOS and OX, so was hoping to secure simmilar commision. Suppose you can't have everything :(

Mark, I did some calling around on commisions from the two places you mentioned and found IB to be the cheapest, but lacks in other areas. TK has a min like OX and worked out to be either the same if not more when only trading few contracts. That left me with OX and TOS which both have...

Why in the world are you paying a ticket charge? What do you mean why? each transaction requires a 12.95 min, so whether i trade 1 contract or 20 I am charged the still charged the min. :( I was told this is already a discount from their 15.95 min. Can I get a better deal elswhere?

Wise words Mark, note taken. Asked my broker & another about portfolio margin out of curiosty, bunch of criteria I won't be able to meet anyways. Also, was told if was able to qualify and then trade more I can apply for lower contract fees, possibly 1.25 per contract. I would still have to...

Thus the trader can trade more. I like the sound of that :) Thanks Mark.

To M&M, Losses are just too common when using this strategy. So if you get overconfident, you may manage risk carelessly. That would not be a good thing. Mark W I can't really see that being a problem for me. I'm quite content earning $500 per 10 lot of ICs and using protection I...

Thanks guys for all the responses, seems like we ended up discussing more about the probabilities of a position than what I was trying to get across, which was real trading returns . I raised the question because I've been paper trading ICs for quite some time doing my best (with limmited...

Earning an ROI of 5-10% month from one position is a reasonable expectation. Expecting that you readily earn that for 12 consecutive months without a draw down is a big expectation. Envisioning that your account will grow 5% a month for an extended period of time (say a year) is an almost...

ROI is precisely that: 'return on investment', not 'return on risk'. What if the risk is undefined (as in case of a short stock). Besides in general capital committed to a trade can be greater or less than it's risk. The risk is defined in the case of ICs, which is the margin being the...

Hi Mark, I must be missing something as I have always interpreted ROI as precisely that, how much one can make on what is at risk. Which would mean 10,000 at risk generating 2,000 would be 20%. So I can't see how reasoning or confidence can come into it, it is what it is. :confused: I do...

Mark, I have been reading your blog & am picking up many useful bits of information. Thanks. If you have an account with 100,000, if you earn $2,000 per month, that's a 2% return on your money. Don't get caught in the trap of measuring return on money at risk - when dealing with iron...

'You can't "expect" anything. If I can do 30%, will you be able to do that much? If I lose 10%, does that mean that you will? There's no way to know how good (or bad) you will be until you do it.' Ofcourse not. I know what your saying, am just trying to sift through alot of the BS. Will...

'Bernie Madoff claimed relatively modest profits of 1% monthly. But in reality he couldn't produce even that - despite having enough money to hire the world's smartest people. Do you really think 5-10% monthly is remotely realistic?' No I don't. But then again I would'nt know, that is why...

Mark, I'm new to options and feeling confused over returns being quoted and would like to get a better understanding of the kinds of returns that can be expected. I have heard and read many varied responses and how credit spreads or iron condors can return anywhere from 5 to 10% each month...