1% profit per day
- Thread starter lojze
- Start date
These are close to my numbers on a daily basis - My average is about $600 - minus comissions. This is currently about 1% a day of my account.
However, as the size of the positions that I put on has grown, I have noticed a slight jump in the complexity of getting out of the position to scoop up the profit. Therefore, I suspect that, given my current trading style, I may run into a brick wall if I expect to continue to grow my account at the 1% rate (assuming all my trading profits stay in the trading account, which they currently do not...)
However, if my account stayed at ~40K forever, I would expect to make ~1% a day indefinetly...
nitro
Why does everyone keep compounding their daily returns into the stratosphere? Trading doesn't work like that. The larger your account grows, the harder it is to make 1% each day. You can make 1% of your account size for a while, but then it decreases depending on your ability, the market and your risk profile.
geezer,
the term you used "boos"--please enlighten me.
thanks,
surf
the term you used "boos"--please enlighten me.
thanks,
surf
This past weeks Barrons lists the best and worst performers for the second quarter. I consider Hedge Funds the closest comparison to traders there is. Some are hot and will fade, some are cold and will turn, most will blow out and there is still only one George Soros who had averaged 20% per year.
Lazard Tech Opportunity 2Q 34.83% 12 month 14.89%
Top 12 month return of 2Q winners list was Sprott Hedge with a 89.49% 12 month and a 19.59% 2Q return.
Of the 10 top performers listed for 2Q only 7 had 12 month returns listed. And of those 7, only 3 had 36 month returns listed.
Neither the Lazard Tech or the Sprott Hedge had 36 month records.
And I could argue both for and against larger amounts of capital. It should be easier to generate a larger return on a smaller amount of capital. However, it is probably easier to generate a larger return with more capital if you get fed market moving information, have a research staff, and several skilled traders working for you.
Now if the question is, should I quit my job since I have saved 25K to trade with and I need to make 1% a day to live, that should be no problem at all.
Lazard Tech Opportunity 2Q 34.83% 12 month 14.89%
Top 12 month return of 2Q winners list was Sprott Hedge with a 89.49% 12 month and a 19.59% 2Q return.
Of the 10 top performers listed for 2Q only 7 had 12 month returns listed. And of those 7, only 3 had 36 month returns listed.
Neither the Lazard Tech or the Sprott Hedge had 36 month records.
And I could argue both for and against larger amounts of capital. It should be easier to generate a larger return on a smaller amount of capital. However, it is probably easier to generate a larger return with more capital if you get fed market moving information, have a research staff, and several skilled traders working for you.
Now if the question is, should I quit my job since I have saved 25K to trade with and I need to make 1% a day to live, that should be no problem at all.