Am I the only one that thinks that people who sometimes harp about 100-300% yearly returns as "nearly impossible" are sometimes just a tad ignorant or pessimistic?
Yes, don't get me wrong it's pretty difficult to do with a huge account, but when thinking about the assets being traded it really doesn't seem impossible to do consistently when you think about relative returns.
Let's say you have a $5000 account and you trade on average 2 contracts in the emini s&p. Considering those assets are valued in the market at roughly $200,000 and the markets have averaged a 10% return each year since existence, one could potentially expect a return of $20,000 annually for that amount (which is a 400% return on a $5000 account).
Yes, 400% sounds crazy and makes people think your a scam artist when you say it's possible but isn't it really just a 10% return on what your trading?
Likewise, trading 10 contracts with a $30,000 account represents a million dollars in assets and thus a 10% return would be 100k (which is a bit more than a 300% return).
Obviously, everything gets more difficult as you scale up since it is harder to find liquidity.
I don't know, I'm curious what you guys think I just find it funny that so many people think a 400% return is like the sun exploding when in reality it is just a 10% return on the assets your trading. (And let's be honest, when is a 7-10% return too much to ask for on an annual basis in the markets).
Anyways, the point of this post is not to say it's easy but just to draw attention to the fact that a 200-300% return annually isn't like the sun exploding. Maybe I missed something, but I'm curious what you guys think.
-- even today, in modern times, I'm sure there are traders who have performed just as stellar