I have been trading stocks at the retail level for just over 3 years. I am averaging about 23% returns annually, mostly swing-trading. I made 25% in 2015. Is this any good? Or, do I have work to do?
23% Annual Returns
- Thread starter Eighteen Aces
- Start date
What type of risk are you taking? How much money do you apply to each trade in terms of percentage? Do you place stops? At what level do you take profits per trade?
rmorse
Sponsor
I have some questions too:
-How much capital in the account when you started?
-How much leverage do you use?
-Worse month?
-Worse day?
-Are you long, long/short or short most of the time?
What else would you like to share?
What an absolutely ridiculous post. People... please keep in mind this poster just signed up today.
For someone to be trading for 3 years and have not come across any articles about long term performance is absolutely ridiculous. Everyone knows that even 10% per year beats most money managers. He might as well have said that his dick is 10 inches long and wonders if girls might find it on the small side.
So please, don't give this loser any of your time.
I somewhat agree...it's kind of strange, or rare, for someone to be trading only 3 years with 23% returns. -- usually you have to 'pay your dues' first with losing
But for the sake of this argument and simplicity...I'll assume everyone is honest and legit
That's not That absurd of a claim to make. hell, you can make that return in a Day if you want to by trading the right instrument and risk tolerance levels.
To the original poster...I say continue to do...what you're doing. Or even rank it up...add more risk, or reward.
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I've read many of your posts, and I think you're too smart to assume everyone is honest at ET.But for the sake of this argument and simplicity...I'll assume everyone is honest and legit
That's not That absurd of a claim to make. hell, you can make that return in a Day if you want to by trading the right instrument and risk tolerance levels.
To the original poster...I say continue to do...what you're doing. Or even rank it up...add more risk, or reward.
A simple search pulls up this chart.
http://www.barrons.com/articles/best-100-hedge-funds-for-2015-1431743869
His 3 year return puts him in the top 30 of this top 100 list. Its a fair comparison since he "says" he "trades" stocks and swing trades.
But its not even so much the number, its the way he says it, which is clearly click bait.
"Is this any good? Or do I have work to do?"
Seriously, does he need to ask? He is completely fishing for replies. What he needs to work on is more subtly and not make it so obvious that he's just looking for attention.
rmorse
Sponsor
There is no cost to me to assume this is an honest post and look to learn more about him. If someone had a long bias in the right sectors and was using no leverage and used most of their account cash toward equities, it would not have been hard to have this return in 2013 and 2014. However, with the same long bias, 2015 would have been very hard without a little skill/luck.
The funny thing is that 2013/2014 benefited investors over traders. Few managers beat the S&P 500 in 2013 where it was up 32%.
Bob
I so much agree with Bob, a monkey could pick the stocks and do well, one of those times where almost anything went up, it been this way since 2009, truly in history has been one of the best bull markets and yet the economy has not showed this in any way, our workers not have had raises in they say twelve years.
Unless day trading which many less than late 1990s, stock are best long term and that pay dividends, I think the most wealth has been accumulated by keeping them for few years then in and out trading. I think it is so tough to time swing trading, if one thinks it is time to get out, why not hedge and do Call credit spreads the open profits till time to buy again?
Truly amazing the 3 year returns of hedge funds, you would think with as much information they have and easier ability to chat with CFOs of companies, they be able to get more information than guy at his desk at home, and hedge funds can't keep up with the Indexes, and people wonder why Sport Books do so well as they don't have to pick sporting teams but clients do. People just pick wrong way to often for emotional reasons instead of charting reasons.
http://www.barrons.com/articles/best-100-hedge-funds-for-2015-1431743869
Unless day trading which many less than late 1990s, stock are best long term and that pay dividends, I think the most wealth has been accumulated by keeping them for few years then in and out trading. I think it is so tough to time swing trading, if one thinks it is time to get out, why not hedge and do Call credit spreads the open profits till time to buy again?
Truly amazing the 3 year returns of hedge funds, you would think with as much information they have and easier ability to chat with CFOs of companies, they be able to get more information than guy at his desk at home, and hedge funds can't keep up with the Indexes, and people wonder why Sport Books do so well as they don't have to pick sporting teams but clients do. People just pick wrong way to often for emotional reasons instead of charting reasons.
http://www.barrons.com/articles/best-100-hedge-funds-for-2015-1431743869
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Hey there Eighteen. Thought I'd chime in here as a new user as well [ was actually researching some issues on the internet with MA taxation on short term gains for my taxes and came across this forum ]
I too have an annualized 3 year return that is doing much better than the pros ( I'm at 39% ) and I used to think this was good until I asked a few professionals. It was hard for them to not laugh in my face. I registered here to give you some input about what they said about my trading and maybe it applies to you:
1. I'm trading a $620,000 book and take on an incredible amount of risk in order to make these returns (actually I no longer trade like this see #5). There are "returns" and then there are "risk adjusted returns" Its a huge difference
2. Best day trading win was around $42,000. Biggest wins last year were two biotechs, both around $98K. Biggest loss was around $9,000 and then worst month was ($17,600).
3. There is something called "value at risk" and its worth exploring. In my book I rarely hold more than 2-3 stocks and positions range from a few days to at most 3-4 weeks.
4. The most I've had in the market at one time was about $320,000. This is the part about risk. I had $250,000 in one stock ( TNXP back in May 2015 ) and then the rest in like 2 other stocks. Also I wasn't hedged on this at all so my risk was sky high. It sucked trying to sleep at night.
5. I do not use leverage at all nor do I trade short. That being said, last year I traded very thinly traded biotechs and could get out in case I needed too but that all stopped in Jan 2016 when I had to take a $21,000 hit. My worst month ever. So now I'm all about trading stocks that at least have 300,000 shares trade per day.
My 2016 is horrible as I'm about -3.5% and I'm trading a ton. But the big part is this: my trading over the last 3 years has been astonishing, but its not steady. I'm up and down all over the place and nobody would want that done to their portfolio. Also and this is the biggest thing....its much much harder to do this once you are moving a few million here and there.
You can swing around sub $500,000 portfolios pretty easy these days and even swim in waters where hedge funds cannot due to liquidity which gives you an edge now, but when you have more money its harder to do since you'd need to increase the number of positions you hold.
Best thing to do would be to show consistent returns every month with minimal draw downs. Its the consistency that matters most not like me winning and crashing all over the place.
I too have an annualized 3 year return that is doing much better than the pros ( I'm at 39% ) and I used to think this was good until I asked a few professionals. It was hard for them to not laugh in my face. I registered here to give you some input about what they said about my trading and maybe it applies to you:
1. I'm trading a $620,000 book and take on an incredible amount of risk in order to make these returns (actually I no longer trade like this see #5). There are "returns" and then there are "risk adjusted returns" Its a huge difference
2. Best day trading win was around $42,000. Biggest wins last year were two biotechs, both around $98K. Biggest loss was around $9,000 and then worst month was ($17,600).
3. There is something called "value at risk" and its worth exploring. In my book I rarely hold more than 2-3 stocks and positions range from a few days to at most 3-4 weeks.
4. The most I've had in the market at one time was about $320,000. This is the part about risk. I had $250,000 in one stock ( TNXP back in May 2015 ) and then the rest in like 2 other stocks. Also I wasn't hedged on this at all so my risk was sky high. It sucked trying to sleep at night.
5. I do not use leverage at all nor do I trade short. That being said, last year I traded very thinly traded biotechs and could get out in case I needed too but that all stopped in Jan 2016 when I had to take a $21,000 hit. My worst month ever. So now I'm all about trading stocks that at least have 300,000 shares trade per day.
My 2016 is horrible as I'm about -3.5% and I'm trading a ton. But the big part is this: my trading over the last 3 years has been astonishing, but its not steady. I'm up and down all over the place and nobody would want that done to their portfolio. Also and this is the biggest thing....its much much harder to do this once you are moving a few million here and there.
You can swing around sub $500,000 portfolios pretty easy these days and even swim in waters where hedge funds cannot due to liquidity which gives you an edge now, but when you have more money its harder to do since you'd need to increase the number of positions you hold.
Best thing to do would be to show consistent returns every month with minimal draw downs. Its the consistency that matters most not like me winning and crashing all over the place.
Anomalies do happen. I was thinking I could help this guy lower his risk.
I'm pretty new to this forum too. Maybe it is BS.
I'm pretty new to this forum too. Maybe it is BS.