Then do it? What is the point of trading a cash account when you possess such an edge? Even RegT gives us 2X margin.
Can I make more than 20% profit?
- Thread starter Alexis_0
- Start date
Then do it? What is the point of trading a cash account when you possess such an edge? Even RegT gives us 2X margin.
Depends on what you are trading.
Depends on your money management strategy.
Calculating compound return in a Spreadsheet is not the real world.
You can make provided you trade with high leverage and coincidently no loss occurs, which rarely happens.
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PLENTY of good answers here.
BUT , better get some smaller numbers also\ that way if the market doesnt ''give LOL'' you 20%, aim @ not letting say/ 17.777% gain in to a 20% loss.
Check out Stock Traders Almanac/ $5,000 per year/12% per year/50 years=$14,700,000[cash].
Or use smaller numbers, invest $1,000 per year[cash for 40 years,20%per year= >$7,333,777[cash].Plenty of hedge funds get 20%[fees \maybe not so much % return LOL.
]
I also used Ron Blue CPA, Storm Shelter book ,for smaller numbers.
Those patterns are among the most common ways to get millions in stock market funds/ETFs.
Plenty of businesses+ service businesses make more than 20%per year; real estate = also good.
{Some told Dave Ramsey ''you cant make 12 % average GS[Goldman Sachs] doesnt '' ] LOL.As if that's a leveraged excuse. LOL\ GS has had plenty of leverage + huge big buck fines , more fines, like BAC} Good question.
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PLENTY of good answers here.
BUT , better get some smaller numbers also\ that way if the market doesnt ''give LOL'' you 20%, aim @ not letting say/ 17.777% gain in to a 20% loss.
Check out Stock Traders Almanac/ $5,000 per year/12% per year/50 years=$14,700,000[cash].
Or use smaller numbers, invest $1,000 per year[cash for 40 years,20%per year= >$7,333,777[cash].Plenty of hedge funds get 20%[fees \maybe not so much % return LOL.
]I also used Ron Blue CPA, Storm Shelter book ,for smaller numbers.
Those patterns are among the most common ways to get millions in stock market funds/ETFs.
Plenty of businesses+ service businesses make more than 20%per year; real estate = also good.
{Some told Dave Ramsey ''you cant make 12 % average GS[Goldman Sachs] doesnt '' ] LOL.As if that's a leveraged excuse. LOL\ GS has had plenty of leverage + huge big buck fines , more fines, like BAC
} Good question.
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Losses are inevitable, yield is based on net.
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1% x 20 most likely will be a much bigger loss than 20% per month;
even IBD only had 3 or 4 scale ins on the chart\
so compounding x20 per month like 20 lotto tickets\ good way to blow up an account.
I would not blame someone if they did that @ 20 years old\
may have time to make up on an account blow up.
AND Alexis dont confuse a one time pattern as a lotto;
some did make 7 figures with ''pet rocks'' So always look for silver or gold , copper/ iron ore in the rocks LOL
Measuring returns in percentages is somewhat meaningless, instead what is far more useful is to know how many R-Multiples the trader is able to generate within each month.
(R-Multiples is basically reward/risk ratio, i.e., the number of points captured at the exit of the trade and divided by the initial risk.)
Position sizing is how you can increase the percentage returns (and losses) while the R-Multiples remaining exactly the same. For example, if you’d risk 0.5% per trade, you’d get different equity curve and percentage return then if you’d risk say 2% per trade. This is how position sizing affects the returns, and why understanding R-multiples is so important because it removes the distortion created by position sizing.
Anyway, making say at least 2R per week is very reasonable and should not be a problem for most intraday traders, which translates into 8R per month. If you’d risk 2% per trade (I would not recommend it), then around 20% per month is doable.
There are some very good intraday traders that can consistently on average 2R or more each day while risking only 1%. If you do the math, then 20% per month is doable. Can most intraday traders, do it? Definitely not!
The formula for making good returns is:
Maximum % of profitable trades + Maximum profit per trade - Small losses x Multiple trades
@SunTrader Let me warn you. I dont like rudeness.
I replied to someone else so fack off with your "warning".
Measuring returns in percentages is somewhat meaningless, instead what is far more useful is to know how many R-Multiples the trader is able to generate within each month.
If you do the math, then 20% per month is doable. Can most intraday traders, do it? Definitely not!
The formula for making good returns is:
Maximum % of profit
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Good points on getting more measures than just % or %%;
+ but that % or %% makes much more sense than just US $ measure which i also use.
Even more so % makes sense when going back + measure 100 years + more
.Like your orange squares say == ''manage your risk ''[expences]